Bill Text: IL SB1651 | 2011-2012 | 97th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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
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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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Common Interest Community Association Act is | ||||||
5 | amended by changing Sections 1-5, 1-15, 1-20, 1-25, 1-30, 1-35, | ||||||
6 | 1-40, 1-45, 1-55, 1-60, and 1-75 and by adding Section 1-80 as | ||||||
7 | follows:
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8 | (765 ILCS 160/1-5)
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9 | Sec. 1-5. Definitions. As used in this Act, unless the | ||||||
10 | context otherwise requires: | ||||||
11 | "Association" or "common interest community association" | ||||||
12 | means the association of all the unit owners of a common | ||||||
13 | interest community, acting pursuant to bylaws through its duly | ||||||
14 | elected board of managers or board of directors. | ||||||
15 | "Board" means a common interest community association's | ||||||
16 | board of managers or board of directors, whichever is | ||||||
17 | applicable. | ||||||
18 | "Board member" or "member of the board" means a member of | ||||||
19 | the board of managers or the board of directors, whichever is | ||||||
20 | applicable. | ||||||
21 | "Board of directors" means, for a common interest community | ||||||
22 | that has been incorporated as an Illinois not-for-profit | ||||||
23 | corporation, the group of people elected by the unit owners of |
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1 | a common interest community as the governing body to exercise | ||||||
2 | for the unit owners of the common interest community | ||||||
3 | association all powers, duties, and authority vested in the | ||||||
4 | board of directors under this Act and the common interest | ||||||
5 | community association's declaration and bylaws. | ||||||
6 | "Board of managers" means, for a common interest community | ||||||
7 | that is an unincorporated association, the group of people | ||||||
8 | elected by the unit owners of a common interest community as | ||||||
9 | the governing body to exercise for the unit owners of the | ||||||
10 | common interest community association all powers, duties, and | ||||||
11 | authority vested in the board of managers under this Act and | ||||||
12 | the common interest community association's declaration and | ||||||
13 | bylaws. | ||||||
14 | "Building" means all structures, attached or unattached, | ||||||
15 | containing one or more units. | ||||||
16 | "Common areas" means the portion of the property other than | ||||||
17 | a unit. | ||||||
18 | "Common expenses" means the proposed or actual expenses | ||||||
19 | affecting the property, including reserves, if any, lawfully | ||||||
20 | assessed by the common interest community association. | ||||||
21 | "Common interest community" means real estate other than a | ||||||
22 | condominium or cooperative with respect to which any person by | ||||||
23 | virtue of his or her ownership of a partial interest or a unit | ||||||
24 | therein is obligated to pay for the maintenance, improvement, | ||||||
25 | insurance premiums or real estate taxes of common areas | ||||||
26 | described in a declaration which is administered by an |
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1 | association. "Common interest community" may include, but not | ||||||
2 | be limited to, an attached or detached townhome, villa, or | ||||||
3 | single-family home , or master association . A "common interest | ||||||
4 | community" does not include a master association. | ||||||
5 | "Community instruments" means all documents and authorized | ||||||
6 | amendments thereto recorded by a developer or common interest | ||||||
7 | community association, including, but not limited to, the | ||||||
8 | declaration, bylaws, plat of survey, and rules and regulations. | ||||||
9 | "Declaration" means any duly recorded instruments, however | ||||||
10 | designated, that have created a common interest community and | ||||||
11 | any duly recorded amendments to those instruments. | ||||||
12 | "Developer" means any person who submits property legally | ||||||
13 | or equitably owned in fee simple by the person to the | ||||||
14 | provisions of this Act, or any person who offers units legally | ||||||
15 | or equitably owned in fee simple by the person for sale in the | ||||||
16 | ordinary course of such person's business, including any | ||||||
17 | successor to such person's entire interest in the property | ||||||
18 | other than the purchaser of an individual unit. | ||||||
19 | "Developer control" means such control at a time prior to | ||||||
20 | the election of the board of the common interest community | ||||||
21 | association by a majority of the unit owners other than the | ||||||
22 | developer. | ||||||
23 | "Majority" or "majority of the unit owners" means the | ||||||
24 | owners of more than 50% in the aggregate in interest of the | ||||||
25 | undivided ownership of the common elements. Any specified | ||||||
26 | percentage of the unit owners means such percentage in the |
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1 | aggregate in interest of such undivided ownership. "Majority" | ||||||
2 | or "majority of the members of the board of the common interest | ||||||
3 | community association" means more than 50% of the total number | ||||||
4 | of persons constituting such board pursuant to the bylaws. Any | ||||||
5 | specified percentage of the members of the common interest | ||||||
6 | community association means that percentage of the total number | ||||||
7 | of persons constituting such board pursuant to the bylaws. | ||||||
8 | "Management company" or "community association manager" | ||||||
9 | means a person, partnership, corporation, or other legal entity | ||||||
10 | entitled to transact business on behalf of others, acting on | ||||||
11 | behalf of or as an agent for an association for the purpose of | ||||||
12 | carrying out the duties, responsibilities, and other | ||||||
13 | obligations necessary for the day to day operation and | ||||||
14 | management of any property subject to this Act.
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15 | "Master association" means a common interest community | ||||||
16 | association that exercises its powers on behalf of one or more | ||||||
17 | condominium or other common interest community associations or | ||||||
18 | for the benefit of unit owners in such associations. | ||||||
19 | "Meeting of the board" or "board meeting" means any | ||||||
20 | gathering of a quorum of the members of the board of the common | ||||||
21 | interest community association held for the purpose of | ||||||
22 | conducting board business. | ||||||
23 | "Member" means the person or entity designated as an owner | ||||||
24 | and entitled to one vote as defined by the community | ||||||
25 | instruments. | ||||||
26 | "Membership" means the collective group of members |
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1 | entitled to vote as defined by the community instruments. | ||||||
2 | "Parcel" means the lot or lots or tract or tracts of land | ||||||
3 | described in the declaration as part of a common interest | ||||||
4 | community. | ||||||
5 | "Person" means a natural individual, corporation, | ||||||
6 | partnership, trustee, or other legal entity capable of holding | ||||||
7 | title to real property. | ||||||
8 | "Plat" means a plat or plats of survey of the parcel and of | ||||||
9 | all units in the common interest community, which may consist | ||||||
10 | of a three-dimensional horizontal and vertical delineation of | ||||||
11 | all such units, structures, easements, and common areas on the | ||||||
12 | property. | ||||||
13 | "Prescribed delivery method" means mailing, delivering, | ||||||
14 | posting in an association publication that is routinely mailed | ||||||
15 | to all unit owners, or any other delivery method that is | ||||||
16 | approved in writing by the unit owner and authorized by the | ||||||
17 | community instruments. | ||||||
18 | "Property" means all the land, property, and space | ||||||
19 | comprising the parcel, all improvements and structures | ||||||
20 | erected, constructed or contained therein or thereon, | ||||||
21 | including any building and all easements, rights, and | ||||||
22 | appurtenances belonging thereto, and all fixtures and | ||||||
23 | equipment intended for the mutual use, benefit, or enjoyment of | ||||||
24 | the unit owners, under the authority or control of a common | ||||||
25 | interest community association. | ||||||
26 | "Purchaser" means any person or persons, other than the |
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1 | developer, who purchase a unit in a bona fide transaction for | ||||||
2 | value. | ||||||
3 | "Record" means to record in the office of the recorder of | ||||||
4 | the county wherein the property is located. | ||||||
5 | "Reserves" means those sums paid by unit owners which are | ||||||
6 | separately maintained by the common interest community | ||||||
7 | association for purposes specified by the declaration and | ||||||
8 | bylaws of the common interest community association. | ||||||
9 | "Unit" means a part of the property designed and intended | ||||||
10 | for any type of independent use. | ||||||
11 | "Unit owner" means the person or persons whose estates or | ||||||
12 | interests, individually or collectively, aggregate fee simple | ||||||
13 | absolute ownership of a unit.
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14 | (Source: P.A. 96-1400, eff. 7-29-10.)
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15 | (765 ILCS 160/1-15)
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16 | Sec. 1-15. Construction, interpretation, and validity of | ||||||
17 | community instruments. | ||||||
18 | (a) Except to the extent otherwise provided by the | ||||||
19 | declaration or other community instruments, the terms defined | ||||||
20 | in Section 1-5 of this Act shall be deemed to have the meaning | ||||||
21 | specified therein unless the context otherwise requires. | ||||||
22 | (b) All provisions of the declaration, bylaws, and other | ||||||
23 | community instruments are severable. | ||||||
24 | (c) A provision in the declaration limiting ownership, | ||||||
25 | rental, or occupancy of a unit to a person 55 years of age or |
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1 | older shall be valid and deemed not to be in violation of | ||||||
2 | Article 3 of the Illinois Human Rights Act provided that the | ||||||
3 | person or the immediate family of a person owning, renting, or | ||||||
4 | lawfully occupying such unit prior to the recording of the | ||||||
5 | initial declaration shall not be deemed to be in violation of | ||||||
6 | such age restriction so long as they continue to own or reside | ||||||
7 | in such unit.
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8 | (d) Every common interest community association shall | ||||||
9 | define a member and its relationship to the units or unit | ||||||
10 | owners in its community instruments. | ||||||
11 | (Source: P.A. 96-1400, eff. 7-29-10.)
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12 | (765 ILCS 160/1-20)
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13 | Sec. 1-20. Amendments to the declaration or bylaws. | ||||||
14 | (a) The administration of every property shall be governed | ||||||
15 | by the declaration and bylaws, which may either be embodied in | ||||||
16 | the declaration or in a separate instrument, a true copy of | ||||||
17 | which shall be appended to and recorded with the declaration. | ||||||
18 | No modification or amendment of the declaration or bylaws shall | ||||||
19 | be valid unless the same is set forth in an amendment thereof | ||||||
20 | and such amendment is duly recorded. An amendment of the | ||||||
21 | declaration or bylaws shall be deemed effective upon | ||||||
22 | recordation, unless the amendment sets forth a different | ||||||
23 | effective date. | ||||||
24 | (b) Unless otherwise provided by this Act, amendments to | ||||||
25 | community instruments authorized to be recorded shall be |
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1 | executed and recorded by the president of the board or such | ||||||
2 | other officer authorized by the common interest community | ||||||
3 | association or the community instruments declaration . | ||||||
4 | (c) If an association that currently permits leasing amends | ||||||
5 | its declaration, bylaws, or rules and regulations to prohibit | ||||||
6 | leasing, nothing in this Act or the declarations, bylaws, rules | ||||||
7 | and regulations of an association shall prohibit a unit owner | ||||||
8 | incorporated under 26 USC 501(c)(3) which is leasing a unit at | ||||||
9 | the time of the prohibition from continuing to do so until such | ||||||
10 | time that the unit owner voluntarily sells the unit; and no | ||||||
11 | special fine, fee, dues, or penalty shall be assessed against | ||||||
12 | the unit owner for leasing its unit.
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13 | (Source: P.A. 96-1400, eff. 7-29-10.)
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14 | (765 ILCS 160/1-25)
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15 | Sec. 1-25. Board of managers, board of directors, duties, | ||||||
16 | elections, and voting. | ||||||
17 | (a) There shall be an annual election of the board of | ||||||
18 | managers or board of directors from among the membership unit | ||||||
19 | owners of a common interest community association. | ||||||
20 | (b) (Blank). The terms of at least one-third of the members | ||||||
21 | of the board shall expire annually and all members of the board | ||||||
22 | shall be elected at large. | ||||||
23 | (c) The members of the board shall serve without | ||||||
24 | compensation, unless the community instruments indicate | ||||||
25 | otherwise. |
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1 | (d) No member of the board or officer shall be elected for | ||||||
2 | a term of more than 3 years, but officers and board members may | ||||||
3 | succeed themselves. | ||||||
4 | (e) If there is a vacancy on the board, the remaining | ||||||
5 | members of the board may fill the vacancy by a two-thirds vote | ||||||
6 | of the remaining board members until the next annual meeting of | ||||||
7 | the membership unit owners or until members unit owners holding | ||||||
8 | 20% of the votes of the association request a meeting of the | ||||||
9 | members unit owners to fill the vacancy for the balance of the | ||||||
10 | term. A meeting of the members unit owners shall be called for | ||||||
11 | purposes of filling a vacancy on the board no later than 30 | ||||||
12 | days following the filing of a petition signed by membership | ||||||
13 | unit owners holding 20% of the votes of the association | ||||||
14 | requesting such a meeting. | ||||||
15 | (f) There shall be an election of a: | ||||||
16 | (1) president from among the members of the board, who | ||||||
17 | shall preside over the meetings of the board and of the | ||||||
18 | membership unit owners ; | ||||||
19 | (2) secretary from among the members of the board, who | ||||||
20 | shall keep the minutes of all meetings of the board and of | ||||||
21 | the membership unit owners and who shall, in general, | ||||||
22 | perform all the duties incident to the office of secretary; | ||||||
23 | and | ||||||
24 | (3) treasurer from among the members of the board, who | ||||||
25 | shall keep the financial records and books of account. | ||||||
26 | (g) If no election is held to elect board members within |
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1 | the time period specified in the bylaws, or within a reasonable | ||||||
2 | amount of time thereafter not to exceed 90 days, then 20% of | ||||||
3 | the members unit owners may bring an action to compel | ||||||
4 | compliance with the election requirements specified in the | ||||||
5 | bylaws. If the court finds that an election was not held to | ||||||
6 | elect members of the board within the required period due to | ||||||
7 | the bad faith acts or omissions of the board of managers or the | ||||||
8 | board of directors, the unit owners shall be entitled to | ||||||
9 | recover their reasonable attorney's fees and costs from the | ||||||
10 | association. If the relevant notice requirements have been met | ||||||
11 | and an election is not held solely due to a lack of a quorum, | ||||||
12 | then this subsection (g) does not apply. | ||||||
13 | (h) Where there is more than one owner of a unit and there | ||||||
14 | is only one member vote associated with that unit , if only one | ||||||
15 | of the multiple owners is present at a meeting of the | ||||||
16 | membership association , he or she is entitled to cast the | ||||||
17 | member vote associated with that unit all the votes allocated | ||||||
18 | to that unit . | ||||||
19 | (h-5) A member unit owner may vote: | ||||||
20 | (1) by proxy executed in writing by the member unit | ||||||
21 | owner or by his or her duly authorized attorney in fact, | ||||||
22 | provided, however, that the proxy bears the date of | ||||||
23 | execution. Unless the community instruments or the written | ||||||
24 | proxy itself provide otherwise, proxies will not be valid | ||||||
25 | for more than 11 months after the date of its execution; or | ||||||
26 | (2) by submitting an association-issued ballot in |
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1 | person at the election meeting; or | ||||||
2 | (3) by submitting an association-issued ballot to the | ||||||
3 | association or its designated agent by mail or other means | ||||||
4 | of delivery specified in the declaration or bylaws. | ||||||
5 | (i) The association may, upon adoption of the appropriate | ||||||
6 | rules by the board, conduct elections by secret ballot , | ||||||
7 | distributed by the association, whereby the voting ballot is | ||||||
8 | marked only with the voting interest for the member unit and | ||||||
9 | the vote itself, provided that the association shall further | ||||||
10 | adopt rules to verify the status of the member unit owner | ||||||
11 | issuing a proxy or casting a ballot. A candidate for election | ||||||
12 | to the board or such candidate's representative shall have the | ||||||
13 | right to be present at the counting of ballots at such | ||||||
14 | election. | ||||||
15 | (j) Upon proof of purchase, the The purchaser of a unit | ||||||
16 | from a seller other than the developer pursuant to an | ||||||
17 | installment contract for purchase shall, during such times as | ||||||
18 | he or she resides in the unit, be counted toward a quorum for | ||||||
19 | purposes of election of members of the board at any meeting of | ||||||
20 | the membership unit owners called for purposes of electing | ||||||
21 | members of the board, shall have the right to vote for the | ||||||
22 | election of members of the board of the common interest | ||||||
23 | community association and to be elected to and serve on the | ||||||
24 | board unless the seller expressly retains in writing any or all | ||||||
25 | of such rights.
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26 | (Source: P.A. 96-1400, eff. 7-29-10.)
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1 | (765 ILCS 160/1-30)
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2 | Sec. 1-30. Board duties and obligations; records. | ||||||
3 | (a) The board shall meet at least 4 times annually. | ||||||
4 | (b) A member of the board of the common interest community | ||||||
5 | association may not enter into a contract with a current board | ||||||
6 | member, or with a corporation or partnership in which a board | ||||||
7 | member or a member of his or her immediate family has 25% or | ||||||
8 | more interest, unless notice of intent to enter into the | ||||||
9 | contract is given to unit owners within 20 days after a | ||||||
10 | decision is made to enter into the contract and the unit owners | ||||||
11 | are afforded an opportunity by filing a petition, signed by 20% | ||||||
12 | of the membership unit owners , for an election to approve or | ||||||
13 | disapprove the contract; such petition shall be filed within 20 | ||||||
14 | days after such notice and such election shall be held within | ||||||
15 | 30 days after filing the petition. For purposes of this | ||||||
16 | subsection, a board member's immediate family means the board | ||||||
17 | member's spouse, parents, and children. | ||||||
18 | (c) The bylaws shall provide for the maintenance, repair, | ||||||
19 | and replacement of the common areas and payments therefor, | ||||||
20 | including the method of approving payment vouchers. | ||||||
21 | (d) (Blank). | ||||||
22 | (e) The association may engage the services of a manager or | ||||||
23 | management company. | ||||||
24 | (f) The association shall have one class of membership | ||||||
25 | unless the declaration or bylaws provide otherwise; however, |
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1 | this subsection (f) shall not be construed to limit the | ||||||
2 | operation of subsection (c) of Section 1-20 of this Act. | ||||||
3 | (g) The board shall have the power, after notice and an | ||||||
4 | opportunity to be heard, to levy and collect reasonable fines | ||||||
5 | from unit owners for violations of the declaration, bylaws, and | ||||||
6 | rules and regulations of the common interest community | ||||||
7 | association. | ||||||
8 | (h) Other than attorney's fees and court costs , no fees | ||||||
9 | pertaining to the collection of a unit owner's financial | ||||||
10 | obligation to the association, including fees charged by a | ||||||
11 | manager or managing agent, shall be added to and deemed a part | ||||||
12 | of a unit owner's respective share of the common expenses | ||||||
13 | unless: (i) the managing agent fees relate to the costs to | ||||||
14 | collect common expenses for the association; (ii) the fees are | ||||||
15 | set forth in a contract between the managing agent and the | ||||||
16 | association; and (iii) the authority to add the management fees | ||||||
17 | to a unit owner's respective share of the common expenses is | ||||||
18 | specifically stated in the declaration or bylaws of the | ||||||
19 | association. | ||||||
20 | (i) Board records. | ||||||
21 | (1) The board shall maintain the following records of | ||||||
22 | the association and make them available for examination and | ||||||
23 | copying at convenient hours of weekdays by any unit owner | ||||||
24 | in a common interest community subject to the authority of | ||||||
25 | the board, their mortgagees, and their duly authorized | ||||||
26 | agents or attorneys: |
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1 | (i) Copies of the recorded declaration, other | ||||||
2 | community instruments, other duly recorded covenants | ||||||
3 | and bylaws and any amendments, articles of | ||||||
4 | incorporation, annual reports, and any rules and | ||||||
5 | regulations adopted by the board shall be available. | ||||||
6 | Prior to the organization of the board, the developer | ||||||
7 | shall maintain and make available the records set forth | ||||||
8 | in this paragraph (i) for examination and copying. | ||||||
9 | (ii) Detailed and accurate records in | ||||||
10 | chronological order of the receipts and expenditures | ||||||
11 | affecting the common areas, specifying and itemizing | ||||||
12 | the maintenance and repair expenses of the common areas | ||||||
13 | and any other expenses incurred, and copies of all | ||||||
14 | contracts, leases, or other agreements entered into by | ||||||
15 | the board shall be maintained. | ||||||
16 | (iii) The minutes of all meetings of the board | ||||||
17 | which shall be maintained for not less than 7 years. | ||||||
18 | (iv) With a written statement of a proper purpose, | ||||||
19 | ballots and proxies related thereto, if any, for any | ||||||
20 | election held for the board and for any other matters | ||||||
21 | voted on by the unit owners, which shall be maintained | ||||||
22 | for not less than one year. | ||||||
23 | (v) With a written statement of a proper purpose, | ||||||
24 | such other records of the board as are available for | ||||||
25 | inspection by members of a not-for-profit corporation | ||||||
26 | pursuant to Section 107.75 of the General Not For |
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1 | Profit Corporation Act of 1986 shall be maintained. | ||||||
2 | (vi) With respect to units owned by a land trust, a | ||||||
3 | living trust, or other legal entity, the trustee, | ||||||
4 | officer, or manager of the entity may designate, in | ||||||
5 | writing, a person to cast votes on behalf of the unit | ||||||
6 | owner and a designation shall remain in effect until a | ||||||
7 | subsequent document is filed with the association. | ||||||
8 | (2) Where a request for records under this subsection | ||||||
9 | is made in writing to the board or its agent, failure to | ||||||
10 | provide the requested record or to respond within 30 days | ||||||
11 | shall be deemed a denial by the board. | ||||||
12 | (3) A reasonable fee may be charged by the board for | ||||||
13 | the cost of retrieving and copying records properly | ||||||
14 | requested. | ||||||
15 | (4) If the board fails to provide records properly | ||||||
16 | requested under paragraph (1) of this subsection (i) within | ||||||
17 | the time period provided in that paragraph (1), the unit | ||||||
18 | owner may seek appropriate relief and shall be entitled to | ||||||
19 | an award of reasonable attorney's fees and costs if the | ||||||
20 | unit owner prevails and the court finds that such failure | ||||||
21 | is due to the acts or omissions of the board of managers or | ||||||
22 | the board of directors. | ||||||
23 | (j) The board shall have standing and capacity to act in a | ||||||
24 | representative capacity in relation to matters involving the | ||||||
25 | common areas or more than one unit, on behalf of the unit | ||||||
26 | owners as their interests may appear.
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1 | (Source: P.A. 96-1400, eff. 7-29-10.)
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2 | (765 ILCS 160/1-35)
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3 | Sec. 1-35. Unit owner powers, duties, and obligations. | ||||||
4 | (a) The provisions of this Act, the declaration, bylaws, | ||||||
5 | other community instruments, and rules and regulations that | ||||||
6 | relate to the use of an individual unit or the common areas | ||||||
7 | shall be applicable to any person leasing a unit and shall be | ||||||
8 | deemed to be incorporated in any lease executed or renewed on | ||||||
9 | or after the effective date of this Act. With regard to any | ||||||
10 | lease entered into subsequent to the effective date of this | ||||||
11 | Act, the unit owner leasing the unit shall deliver a copy of | ||||||
12 | the signed lease to the association or if the lease is oral, a | ||||||
13 | memorandum of the lease, not later than the date of occupancy | ||||||
14 | or 10 days after the lease is signed, whichever occurs first. | ||||||
15 | (b) If there are multiple owners of a single unit, only one | ||||||
16 | of the multiple owners shall be eligible to serve as a member | ||||||
17 | of the board at any one time. | ||||||
18 | (c) Two-thirds of the membership unit owners may remove a | ||||||
19 | board member as a director at a duly duty called special | ||||||
20 | meeting of the unit owners . | ||||||
21 | (d) In the event of any resale of a unit in a common | ||||||
22 | interest community association by a unit owner other than the | ||||||
23 | developer, the board shall make available for inspection to the | ||||||
24 | prospective purchaser, upon demand, the following:
| ||||||
25 | (1) A copy of the declaration, other instruments, and |
| |||||||
| |||||||
1 | any rules and regulations.
| ||||||
2 | (2) A statement of any liens, including a statement of | ||||||
3 | the account of the unit setting forth the amounts of unpaid | ||||||
4 | assessments and other charges due and owing.
| ||||||
5 | (3) A statement of any capital expenditures | ||||||
6 | anticipated by the association within the current or | ||||||
7 | succeeding 2 fiscal years.
| ||||||
8 | (4) A statement of the status and amount of any reserve | ||||||
9 | or for replacement fund and any other fund specifically | ||||||
10 | designated for association projects portion of such fund | ||||||
11 | earmarked for any specified project by the board .
| ||||||
12 | (5) A copy of the statement of financial condition of | ||||||
13 | the association for the last fiscal year for which such a | ||||||
14 | statement is available.
| ||||||
15 | (6) A statement of the status of any pending suits or | ||||||
16 | judgments in which the association is a party.
| ||||||
17 | (7) A statement setting forth what insurance coverage | ||||||
18 | is provided for all unit owners by the association.
| ||||||
19 | (8) A statement that any improvements or alterations | ||||||
20 | made to the unit, or any part of the common areas assigned | ||||||
21 | thereto, by the prior unit owner are in good faith believed | ||||||
22 | to be in compliance with the declaration of the | ||||||
23 | association.
| ||||||
24 | The principal officer of the board or such other officer as | ||||||
25 | is specifically designated shall furnish the above information | ||||||
26 | within 30 days after receiving a written request for such |
| |||||||
| |||||||
1 | information. | ||||||
2 | A reasonable fee covering the direct out-of-pocket cost of | ||||||
3 | copying and providing such information may be charged by the | ||||||
4 | association or the board to the unit seller for providing the | ||||||
5 | information.
| ||||||
6 | (Source: P.A. 96-1400, eff. 7-29-10.)
| ||||||
7 | (765 ILCS 160/1-40)
| ||||||
8 | Sec. 1-40. Meetings. | ||||||
9 | (a) Notice Written notice of any membership meeting shall | ||||||
10 | be given detailing the time, place, and purpose of such meeting | ||||||
11 | mailed or delivered giving members no less than 10 and no more | ||||||
12 | than 30 days prior to the meeting through a prescribed delivery | ||||||
13 | method notice of the time, place, and purpose of such meeting . | ||||||
14 | (b) Meetings. | ||||||
15 | (1) Twenty percent of the membership unit owners shall | ||||||
16 | constitute a quorum, unless the community instruments | ||||||
17 | indicate a lesser amount otherwise . | ||||||
18 | (2) The membership unit owners shall hold an annual | ||||||
19 | meeting , one of the purposes of which shall be to elect | ||||||
20 | members of the board of managers or board of directors of | ||||||
21 | the common interest community association . The board of | ||||||
22 | directors may be elected at the annual meeting. | ||||||
23 | (3) Special meetings of the board may be called by the | ||||||
24 | president , by or 25% of the members of the board , or by any | ||||||
25 | other method that is prescribed in the community |
| |||||||
| |||||||
1 | instruments . Special meetings of the membership unit | ||||||
2 | owners may be called by the president, the board, or by 20% | ||||||
3 | of the membership, or any other method that is prescribed | ||||||
4 | in the community instruments unit owners . | ||||||
5 | (4) Except to the extent otherwise provided by this | ||||||
6 | Act, the board shall give the unit owners notice of all | ||||||
7 | board meetings at least 48 hours prior to the meeting by | ||||||
8 | sending notice by using a prescribed delivery method mail, | ||||||
9 | personal delivery, or by posting copies of notices of | ||||||
10 | meetings in entranceways, elevators, or other conspicuous | ||||||
11 | places in the common areas of the common interest community | ||||||
12 | at least 48 hours prior to the meeting except where there | ||||||
13 | is no common entranceway for 7 or more units, the board may | ||||||
14 | designate one or more locations in the proximity of these | ||||||
15 | units where the notices of meetings shall be posted. The | ||||||
16 | board shall give unit owners , by mail or personal delivery, | ||||||
17 | notice of any board meeting , through a prescribed delivery | ||||||
18 | method, concerning the adoption of (i) the proposed annual | ||||||
19 | budget, (ii) regular assessments, or (iii) a separate or | ||||||
20 | special assessment within 10 to 60 30 days prior to the | ||||||
21 | meeting, unless otherwise provided in Section 1-45 (a) or | ||||||
22 | any other provision of this Act. | ||||||
23 | (5) Meetings of the board shall be open to any unit | ||||||
24 | owner, except for the portion of any meeting held (i) to | ||||||
25 | discuss litigation when an action against or on behalf of | ||||||
26 | the particular association has been filed and is pending in |
| |||||||
| |||||||
1 | a court or administrative tribunal, or when the common | ||||||
2 | interest community association finds that such an action is | ||||||
3 | probable or imminent, (ii) to consider third party | ||||||
4 | contracts or information regarding appointment, | ||||||
5 | employment, or dismissal of an employee, or (iii) to | ||||||
6 | discuss violations of rules and regulations of the | ||||||
7 | association or a unit owner's unpaid share of common | ||||||
8 | expenses. Any vote on these matters shall be taken at a | ||||||
9 | meeting or portion thereof open to any unit owner. | ||||||
10 | (6) The board must reserve a portion of the meeting of | ||||||
11 | the board for comments by unit owners; provided, however, | ||||||
12 | the duration and meeting order for the unit owner comment | ||||||
13 | period is within the sole discretion of the board.
| ||||||
14 | (Source: P.A. 96-1400, eff. 7-29-10.)
| ||||||
15 | (765 ILCS 160/1-45)
| ||||||
16 | Sec. 1-45. Finances. | ||||||
17 | (a) Each unit owner shall receive through a prescribed | ||||||
18 | delivery method , at least 30 days but not more than 60 days | ||||||
19 | prior to the adoption thereof by the board, a copy of the | ||||||
20 | proposed annual budget together with an indication of which | ||||||
21 | portions are intended for reserves, capital expenditures or | ||||||
22 | repairs or payment of real estate taxes. | ||||||
23 | (b) The board shall provide all unit owners with a | ||||||
24 | reasonably detailed summary of the receipts, common expenses, | ||||||
25 | and reserves for the preceding budget year. The board shall (i) |
| |||||||
| |||||||
1 | make available for review annually supply to all unit owners an | ||||||
2 | itemized accounting of the common expenses for the preceding | ||||||
3 | year actually incurred or paid, together with an indication of | ||||||
4 | which portions were for reserves, capital expenditures or | ||||||
5 | repairs or payment of real estate taxes and with a tabulation | ||||||
6 | of the amounts collected pursuant to the budget or assessment, | ||||||
7 | and showing the net excess or deficit of income over | ||||||
8 | expenditures plus reserves or (ii) provide a consolidated | ||||||
9 | annual independent audit report of the financial status of all | ||||||
10 | fund accounts within the association . | ||||||
11 | (c) If an adopted budget or any separate assessment adopted | ||||||
12 | by the board would result in the sum of all regular and | ||||||
13 | separate assessments payable in the current fiscal year | ||||||
14 | exceeding 115% of the sum of all regular and separate | ||||||
15 | assessments payable during the preceding fiscal year, the | ||||||
16 | common interest community association, upon written petition | ||||||
17 | by unit owners with 20% of the votes of the association | ||||||
18 | delivered to the board within 14 days of the board action, | ||||||
19 | shall call a meeting of the unit owners within 30 days of the | ||||||
20 | date of delivery of the petition to consider the budget or | ||||||
21 | separate assessment; unless a majority of the total votes of | ||||||
22 | the unit owners are cast at the meeting to reject the budget or | ||||||
23 | separate assessment, it shall be deemed ratified. | ||||||
24 | (d) Any common expense not set forth in the budget or any | ||||||
25 | increase in assessments over the amount adopted in the budget | ||||||
26 | shall be separately assessed against all unit owners. |
| |||||||
| |||||||
1 | (e) Separate assessments for expenditures relating to | ||||||
2 | emergencies or mandated by law may be adopted by the board | ||||||
3 | without being subject to unit owner approval or the provisions | ||||||
4 | of subsection (c) or (f) of this Section. As used herein, | ||||||
5 | "emergency" means an immediate danger to the structural | ||||||
6 | integrity of the common areas or to the life, health, safety, | ||||||
7 | or property of the unit owners. | ||||||
8 | (f) Assessments for additions and alterations to the common | ||||||
9 | areas or to association-owned property not included in the | ||||||
10 | adopted annual budget, shall be separately assessed and are | ||||||
11 | subject to approval of two-thirds of the total members at a | ||||||
12 | meeting called for that purpose votes of all unit owners . | ||||||
13 | (g) The board may adopt separate assessments payable over | ||||||
14 | more than one fiscal year. With respect to multi-year | ||||||
15 | assessments not governed by subsections (e) and (f) of this | ||||||
16 | Section, the entire amount of the multi-year assessment shall | ||||||
17 | be deemed considered and authorized in the first fiscal year in | ||||||
18 | which the assessment is approved. | ||||||
19 | (h) The board of a common interest community association | ||||||
20 | shall have the authority to establish and maintain a system of | ||||||
21 | master metering of public utility services to collect payments | ||||||
22 | in conjunction therewith, subject to the requirements of the | ||||||
23 | Tenant Utility Payment Disclosure Act.
| ||||||
24 | (Source: P.A. 96-1400, eff. 7-29-10.)
| ||||||
25 | (765 ILCS 160/1-55)
|
| |||||||
| |||||||
1 | Sec. 1-55. Fidelity insurance. An association with 30 or | ||||||
2 | more units shall obtain and maintain fidelity insurance | ||||||
3 | covering persons who control or disburse funds of the | ||||||
4 | association for the maximum amount of coverage that is | ||||||
5 | commercially available or reasonably required available to | ||||||
6 | protect funds in the custody or control of the association plus | ||||||
7 | the association reserve fund . All management companies which | ||||||
8 | are responsible for the funds held or administered by the | ||||||
9 | association shall maintain and furnish to the association a | ||||||
10 | fidelity bond for the maximum amount of coverage that is | ||||||
11 | commercially available or reasonably required available to | ||||||
12 | protect funds in the custody of the management company at any | ||||||
13 | time. The association shall bear the cost of the fidelity | ||||||
14 | insurance and fidelity bond, unless otherwise provided by | ||||||
15 | contract between the association and a management company.
| ||||||
16 | (Source: P.A. 96-1400, eff. 7-29-10.)
| ||||||
17 | (765 ILCS 160/1-60)
| ||||||
18 | Sec. 1-60. Errors and omissions. | ||||||
19 | (a) If there is an omission or error in the declaration or | ||||||
20 | other instrument of the association, the association may | ||||||
21 | correct the error or omission by an amendment to the | ||||||
22 | declaration or other instrument, as may be required to conform | ||||||
23 | it to this Act, to any other applicable statute, or to the | ||||||
24 | declaration. The amendment shall be adopted by vote of | ||||||
25 | two-thirds of the members of the board of directors or by a |
| |||||||
| |||||||
1 | majority vote of the members unit owners at a meeting called | ||||||
2 | for that purpose, unless the Act or the declaration of the | ||||||
3 | association specifically provides for greater percentages or | ||||||
4 | different procedures. | ||||||
5 | (b) If, through a scrivener's error, a unit has not been | ||||||
6 | designated as owning an appropriate undivided share of the | ||||||
7 | common areas or does not bear an appropriate share of the | ||||||
8 | common expenses, or if all of the common expenses or all of the | ||||||
9 | common elements have not been distributed in the declaration, | ||||||
10 | so that the sum total of the shares of common areas which have | ||||||
11 | been distributed or the sum total of the shares of the common | ||||||
12 | expenses fail to equal 100%, or if it appears that more than | ||||||
13 | 100% of the common elements or common expenses have been | ||||||
14 | distributed, the error may be corrected by operation of law by | ||||||
15 | filing an amendment to the declaration, approved by vote of | ||||||
16 | two-thirds of the members of the board or a majority vote of | ||||||
17 | the members unit owners at a meeting called for that purpose, | ||||||
18 | which proportionately adjusts all percentage interests so that | ||||||
19 | the total is equal to 100%, unless the declaration specifically | ||||||
20 | provides for a different procedure or different percentage vote | ||||||
21 | by the owners of the units and the owners of mortgages thereon | ||||||
22 | affected by modification being made in the undivided interest | ||||||
23 | in the common areas, the number of votes in the association or | ||||||
24 | the liability for common expenses appertaining to the unit.
| ||||||
25 | (c) If a scrivener's error in the declaration or other | ||||||
26 | instrument is corrected by vote of two-thirds of the members of |
| |||||||
| |||||||
1 | the board pursuant to the authority established in subsection | ||||||
2 | (a) or subsection (b), the board, upon written petition by | ||||||
3 | members unit owners with 20% of the votes of the association | ||||||
4 | received within 30 days of the board action, shall call a | ||||||
5 | meeting of the members unit owners within 30 days of the filing | ||||||
6 | of the petition to consider the board action. Unless a majority | ||||||
7 | of the votes of the members unit owners of the association are | ||||||
8 | cast at the meeting to reject the action, it is ratified | ||||||
9 | whether or not a quorum is present.
| ||||||
10 | (d) Nothing contained in this Section shall be construed to | ||||||
11 | invalidate any provision of a declaration authorizing the | ||||||
12 | developer to amend an instrument prior to the latest date on | ||||||
13 | which the initial membership meeting of the unit owners must be | ||||||
14 | held, whether or not it has actually been held, to bring the | ||||||
15 | instrument into compliance with the legal requirements of the | ||||||
16 | Federal National Mortgage Association, the Federal Home Loan | ||||||
17 | Mortgage Corporation, the Federal Housing Administration, the | ||||||
18 | United States Department of Veterans Affairs, or their | ||||||
19 | respective successors and assigns.
| ||||||
20 | (Source: P.A. 96-1400, eff. 7-29-10.)
| ||||||
21 | (765 ILCS 160/1-75)
| ||||||
22 | Sec. 1-75. Exemptions for small community interest | ||||||
23 | communities. | ||||||
24 | (a) A common interest community association organized | ||||||
25 | under the General Not for Profit Corporation Act of 1986 and |
| |||||||
| |||||||
1 | having either (i) 10 units or less or (ii) annual budgeted | ||||||
2 | assessments of $100,000 or less shall be exempt from this Act | ||||||
3 | unless the association affirmatively elects to be covered by | ||||||
4 | this Act by a majority of its directors or members and unit | ||||||
5 | owners . | ||||||
6 | (b) Common interest community associations which in their | ||||||
7 | declaration, bylaws, or other governing documents provide that | ||||||
8 | the association may not use the courts or an arbitration | ||||||
9 | process to collect or enforce assessments, fines, or similar | ||||||
10 | levies and common interest community associations (i) of 10 | ||||||
11 | units or less or (ii) having annual budgeted assessments of | ||||||
12 | $50,000 or less shall be exempt from subsection (a) of Section | ||||||
13 | 1-30, subsections (a) and (b) of Section 1-40, and Section 1-55 | ||||||
14 | but shall be required to provide notice of meetings to unit | ||||||
15 | owners in a manner and at a time that will allow unit owners to | ||||||
16 | participate in those meetings.
| ||||||
17 | (Source: P.A. 96-1400, eff. 7-29-10.)
| ||||||
18 | (765 ILCS 160/1-80 new) | ||||||
19 | Sec. 1-80. Compliance. A common interest community | ||||||
20 | association shall be in full compliance with the provisions of | ||||||
21 | this Act no later than January 1, 2012.
| ||||||
22 | Section 10. The Condominium Property Act is amended by | ||||||
23 | changing Section 18.5 as follows:
|
| |||||||
| |||||||
1 | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| ||||||
2 | Sec. 18.5. Master Associations.
| ||||||
3 | (a) If the declaration, other condominium instrument, or | ||||||
4 | other duly
recorded covenants provide that any of the powers of | ||||||
5 | the unit owners
associations are to be exercised by or may be | ||||||
6 | delegated to a nonprofit
corporation or unincorporated | ||||||
7 | association that exercises
those or other powers on behalf of | ||||||
8 | one or more condominiums, or for the
benefit of the unit owners | ||||||
9 | of one or more condominiums, such
corporation or association | ||||||
10 | shall be a master association.
| ||||||
11 | (b) There shall be included in the declaration, other
| ||||||
12 | condominium instruments, or other duly recorded covenants | ||||||
13 | establishing
the powers and duties of the master association | ||||||
14 | the provisions set forth in
subsections (c) through (h).
| ||||||
15 | In interpreting subsections (c) through (h), the courts | ||||||
16 | should
interpret these provisions so that they are interpreted | ||||||
17 | consistently with
the similar parallel provisions found in | ||||||
18 | other parts of this Act.
| ||||||
19 | (c) Meetings and finances.
| ||||||
20 | (1) Each unit owner of a condominium subject to the | ||||||
21 | authority of
the board of the master association shall | ||||||
22 | receive, at least 30 days prior
to the adoption thereof by | ||||||
23 | the board of the master association, a copy of
the proposed | ||||||
24 | annual budget.
| ||||||
25 | (2) The board of the master association shall annually | ||||||
26 | supply to
all unit owners of condominiums subject to the |
| |||||||
| |||||||
1 | authority of the board
of the master association an | ||||||
2 | itemized accounting of the common
expenses for the | ||||||
3 | preceding year actually incurred or paid, together with a
| ||||||
4 | tabulation of the amounts collected pursuant to the budget | ||||||
5 | or assessment,
and showing the net excess or deficit of | ||||||
6 | income over expenditures plus
reserves.
| ||||||
7 | (3) Each unit owner of a condominium subject to the | ||||||
8 | authority of
the board of the master association shall | ||||||
9 | receive written notice mailed
or delivered no less than 10 | ||||||
10 | and no more than 30 days prior to any meeting
of the board | ||||||
11 | of the master association concerning the adoption of the | ||||||
12 | proposed
annual budget or any increase in the budget, or | ||||||
13 | establishment of an
assessment.
| ||||||
14 | (4) Meetings of the board of the master association | ||||||
15 | shall be open
to any unit owner in a condominium subject to | ||||||
16 | the authority of the board
of the master association, | ||||||
17 | except for the portion of any meeting held:
| ||||||
18 | (A) to discuss litigation when an action against or | ||||||
19 | on behalf of the
particular master association has been | ||||||
20 | filed and is pending in a court or
administrative | ||||||
21 | tribunal, or when the board of the master association | ||||||
22 | finds
that such an action is probable or imminent,
| ||||||
23 | (B) to consider information regarding appointment, | ||||||
24 | employment or
dismissal of an employee, or
| ||||||
25 | (C) to discuss violations of rules and regulations | ||||||
26 | of the master
association or unpaid common expenses |
| |||||||
| |||||||
1 | owed to the master association.
| ||||||
2 | Any vote on these matters shall be taken at a meeting or | ||||||
3 | portion thereof
open to any unit owner of a condominium | ||||||
4 | subject to the authority of the
master association.
| ||||||
5 | Any unit owner may record the proceedings at meetings | ||||||
6 | required
to be open by this Act by tape, film or other | ||||||
7 | means; the board may
prescribe reasonable rules and | ||||||
8 | regulations to govern the right to make such
recordings. | ||||||
9 | Notice of meetings shall be mailed or delivered at least 48
| ||||||
10 | hours prior thereto, unless a written waiver of such notice | ||||||
11 | is signed by
the persons entitled to notice before the | ||||||
12 | meeting is convened. Copies of
notices of meetings of the | ||||||
13 | board of the master association shall be posted
in | ||||||
14 | entranceways, elevators, or other conspicuous places in | ||||||
15 | the condominium
at least 48 hours prior to the meeting of | ||||||
16 | the board of the master
association. Where there is no | ||||||
17 | common entranceway for 7 or more units, the
board of the | ||||||
18 | master association may designate one or more locations in | ||||||
19 | the
proximity of these units where the notices of meetings | ||||||
20 | shall be posted.
| ||||||
21 | (5) If the declaration provides for election by unit | ||||||
22 | owners of members
of the board of directors in the event of | ||||||
23 | a resale of a unit in the master
association, the purchaser | ||||||
24 | of a unit from a seller other than the developer
pursuant | ||||||
25 | to an installment contract for purchase shall, during such
| ||||||
26 | times as he or she resides in the unit, be counted toward a |
| |||||||
| |||||||
1 | quorum for
purposes of election of members of the board of | ||||||
2 | directors at any
meeting of the unit owners called for | ||||||
3 | purposes of electing members of the
board, and shall have | ||||||
4 | the right to vote for the election of members of
the board | ||||||
5 | of directors and to be elected to and serve on the board of
| ||||||
6 | directors unless the seller expressly retains in writing
| ||||||
7 | any or all of those rights. In no event may the seller and
| ||||||
8 | purchaser both be counted toward a quorum, be permitted to | ||||||
9 | vote for a
particular office, or be elected and serve on | ||||||
10 | the board. Satisfactory
evidence of the installment | ||||||
11 | contract shall be made available to the
association or its | ||||||
12 | agents. For purposes of this subsection, "installment
| ||||||
13 | contract" shall have the same meaning as set forth in | ||||||
14 | subsection (e) of
Section 1 of the Dwelling Unit | ||||||
15 | Installment Contract Act.
| ||||||
16 | (6) The board of the master association shall have the | ||||||
17 | authority to
establish and maintain a system of master | ||||||
18 | metering of public utility
services and to collect payments | ||||||
19 | in connection therewith, subject to the
requirements of the | ||||||
20 | Tenant Utility Payment Disclosure Act.
| ||||||
21 | (7) The board of the master association or a common | ||||||
22 | interest community
association shall have the power, after | ||||||
23 | notice and an opportunity to be heard,
to levy and collect | ||||||
24 | reasonable fines from members for violations of the
| ||||||
25 | declaration, bylaws, and rules and regulations of the | ||||||
26 | master association or
the common interest community |
| |||||||
| |||||||
1 | association. Nothing contained in this
subdivision (7) | ||||||
2 | shall give rise to a statutory lien for unpaid fines.
| ||||||
3 | (8) Other than attorney's fees, no fees pertaining to | ||||||
4 | the collection of a unit owner's financial obligation to | ||||||
5 | the Association, including fees charged by a manager or | ||||||
6 | managing agent, shall be added to and deemed a part of an | ||||||
7 | owner's respective share of the common expenses unless: (i) | ||||||
8 | the managing agent fees relate to the costs to collect | ||||||
9 | common expenses for the Association; (ii) the fees are set | ||||||
10 | forth in a contract between the managing agent and the | ||||||
11 | Association; and (iii) the authority to add the management | ||||||
12 | fees to an owner's respective share of the common expenses | ||||||
13 | is specifically stated in the declaration or bylaws of the | ||||||
14 | Association. | ||||||
15 | (d) Records.
| ||||||
16 | (1) The board of the master association shall maintain | ||||||
17 | the following
records of the association and make them | ||||||
18 | available for examination and
copying at convenient hours | ||||||
19 | of weekdays by any unit owners in a condominium
subject to | ||||||
20 | the authority of the board or their mortgagees and their | ||||||
21 | duly
authorized agents or attorneys:
| ||||||
22 | (i) Copies of the recorded declaration, other | ||||||
23 | condominium instruments,
other duly recorded covenants | ||||||
24 | and bylaws and any amendments, articles of
| ||||||
25 | incorporation of the master association, annual | ||||||
26 | reports and any rules and
regulations adopted by the |
| |||||||
| |||||||
1 | master association or its board shall
be available. | ||||||
2 | Prior to the organization of the master association, | ||||||
3 | the
developer shall maintain and make available the | ||||||
4 | records set forth in this
subdivision (d)(1) for | ||||||
5 | examination and copying.
| ||||||
6 | (ii) Detailed and accurate records in | ||||||
7 | chronological order of the
receipts and expenditures | ||||||
8 | affecting the common areas, specifying and
itemizing | ||||||
9 | the maintenance and repair expenses of the common areas | ||||||
10 | and any
other expenses incurred, and copies of all | ||||||
11 | contracts, leases, or other
agreements entered into by | ||||||
12 | the master association, shall be maintained.
| ||||||
13 | (iii) The minutes of all meetings of the master | ||||||
14 | association and the
board of the master association | ||||||
15 | shall be maintained for not less than 7 years.
| ||||||
16 | (iv) Ballots and proxies related thereto, if any, | ||||||
17 | for any election
held for the board of the master | ||||||
18 | association and for any other matters
voted on by the | ||||||
19 | unit owners shall be maintained for
not less than one | ||||||
20 | year.
| ||||||
21 | (v) Such other records of the master association as | ||||||
22 | are available
for inspection by members of a | ||||||
23 | not-for-profit corporation pursuant to
Section 107.75 | ||||||
24 | of the General Not For Profit Corporation Act of 1986 | ||||||
25 | shall
be maintained.
| ||||||
26 | (vi) With respect to units owned by a land trust, |
| |||||||
| |||||||
1 | if a trustee
designates in writing a person to cast | ||||||
2 | votes on behalf of the unit
owner, the designation | ||||||
3 | shall remain in effect until a subsequent document
is | ||||||
4 | filed with the association.
| ||||||
5 | (2) Where a request for records under this subsection | ||||||
6 | is made in writing
to the board of managers or its agent, | ||||||
7 | failure to provide the requested
record or to respond | ||||||
8 | within 30 days shall be deemed a denial by the board
of | ||||||
9 | directors.
| ||||||
10 | (3) A reasonable fee may be charged by the master | ||||||
11 | association or its
board for the cost of copying.
| ||||||
12 | (4) If the board of directors fails to provide records | ||||||
13 | properly
requested under subdivision (d)(1) within the
| ||||||
14 | time period provided in subdivision (d)(2), the
unit owner | ||||||
15 | may seek appropriate relief, including an award of
| ||||||
16 | attorney's fees and costs.
| ||||||
17 | (e) The board of directors shall have standing and capacity | ||||||
18 | to act in
a representative capacity in relation to matters | ||||||
19 | involving the common areas
of the master association or more | ||||||
20 | than one unit, on behalf of the unit
owners as their interests | ||||||
21 | may appear.
| ||||||
22 | (f) Administration of property prior to election of the | ||||||
23 | initial board
of directors.
| ||||||
24 | (1) Until the election, by the unit owners or the | ||||||
25 | boards of
managers of the underlying condominium | ||||||
26 | associations, of the initial board
of directors of a master |
| |||||||
| |||||||
1 | association whose declaration is recorded on
or after | ||||||
2 | August 10, 1990, the same rights, titles, powers, | ||||||
3 | privileges,
trusts, duties and obligations that are vested | ||||||
4 | in or imposed upon the board
of directors by this Act or in | ||||||
5 | the declaration or other duly recorded
covenant shall be | ||||||
6 | held and performed by the developer.
| ||||||
7 | (2) The election of the initial board of directors of a | ||||||
8 | master
association whose declaration is recorded on or | ||||||
9 | after August 10, 1990, by
the unit owners or the boards of | ||||||
10 | managers of the underlying condominium
associations, shall | ||||||
11 | be held not later than 60 days after the conveyance by
the | ||||||
12 | developer of 75% of the units, or 3 years after the | ||||||
13 | recording of the
declaration, whichever is earlier. The | ||||||
14 | developer shall give at least 21
days notice of the meeting | ||||||
15 | to elect the initial board of directors and
shall upon | ||||||
16 | request provide to any unit owner, within 3 working days of | ||||||
17 | the
request, the names, addresses, and weighted vote of | ||||||
18 | each unit owner entitled to vote at the
meeting. Any unit | ||||||
19 | owner shall upon receipt of the request be provided with
| ||||||
20 | the same
information, within 10 days of the request, with | ||||||
21 | respect to
each
subsequent meeting to elect members of the | ||||||
22 | board of directors.
| ||||||
23 | (3) If the initial board of directors of a master | ||||||
24 | association
whose declaration is recorded on or after | ||||||
25 | August 10, 1990 is not elected by
the unit owners or the | ||||||
26 | members of the underlying condominium association
board of |
| |||||||
| |||||||
1 | managers at the time established in subdivision (f)(2), the
| ||||||
2 | developer shall continue in office for a period of 30 days, | ||||||
3 | whereupon
written notice of his resignation shall be sent | ||||||
4 | to all of the unit owners
or members of the underlying | ||||||
5 | condominium board of managers entitled to vote
at an | ||||||
6 | election for members of the board of directors.
| ||||||
7 | (4) Within 60 days following the election of a majority | ||||||
8 | of the board
of directors, other than the developer, by | ||||||
9 | unit owners, the developer shall
deliver to the board of | ||||||
10 | directors:
| ||||||
11 | (i) All original documents as recorded or filed | ||||||
12 | pertaining to the
property, its administration, and | ||||||
13 | the association, such as the declaration,
articles of | ||||||
14 | incorporation, other instruments, annual reports, | ||||||
15 | minutes,
rules and regulations, and contracts, leases, | ||||||
16 | or other
agreements entered into by the association. If | ||||||
17 | any original documents are
unavailable, a copy may be | ||||||
18 | provided if certified by affidavit of the
developer, or | ||||||
19 | an officer or agent of the developer, as being a | ||||||
20 | complete
copy of the actual document recorded or filed.
| ||||||
21 | (ii) A detailed accounting by the developer, | ||||||
22 | setting forth the
source and nature of receipts and | ||||||
23 | expenditures in connection with the
management, | ||||||
24 | maintenance and operation of the property, copies
of | ||||||
25 | all insurance policies, and a list of any loans or | ||||||
26 | advances to the
association which are outstanding.
|
| |||||||
| |||||||
1 | (iii) Association funds, which shall have been at | ||||||
2 | all times
segregated from any other moneys of the | ||||||
3 | developer.
| ||||||
4 | (iv) A schedule of all real or personal property, | ||||||
5 | equipment and
fixtures belonging to the association, | ||||||
6 | including documents transferring the
property, | ||||||
7 | warranties, if any, for all real and personal property | ||||||
8 | and
equipment, deeds, title insurance policies, and | ||||||
9 | all tax bills.
| ||||||
10 | (v) A list of all litigation, administrative | ||||||
11 | action and arbitrations
involving the association, any | ||||||
12 | notices of governmental bodies involving
actions taken | ||||||
13 | or which may be taken concerning the association, | ||||||
14 | engineering and
architectural drawings and | ||||||
15 | specifications as approved by any governmental
| ||||||
16 | authority, all other documents filed with any other | ||||||
17 | governmental authority,
all governmental certificates, | ||||||
18 | correspondence involving enforcement of any
| ||||||
19 | association requirements, copies of any documents | ||||||
20 | relating to disputes
involving unit owners, and | ||||||
21 | originals of all documents relating to
everything | ||||||
22 | listed in this subparagraph.
| ||||||
23 | (vi) If the developer fails to fully comply with | ||||||
24 | this paragraph (4)
within
the 60 days
provided and | ||||||
25 | fails to fully comply within 10 days of written demand | ||||||
26 | mailed by
registered
or certified mail to his or her |
| |||||||
| |||||||
1 | last known address, the board may bring an
action to
| ||||||
2 | compel compliance with this paragraph (4).
If the court | ||||||
3 | finds that any of the
required
deliveries were not made | ||||||
4 | within the required period, the board shall be
entitled | ||||||
5 | to recover
its reasonable attorneys' fees and costs | ||||||
6 | incurred from and after the date of
expiration of
the | ||||||
7 | 10 day demand.
| ||||||
8 | (5) With respect to any master association whose | ||||||
9 | declaration is
recorded on or after August 10, 1990, any | ||||||
10 | contract, lease, or other
agreement made prior to the | ||||||
11 | election of a majority of the board of
directors other than | ||||||
12 | the developer by or on behalf of unit owners or
underlying | ||||||
13 | condominium associations, the association or the board of
| ||||||
14 | directors, which extends for a period of more than 2 years | ||||||
15 | from the
recording of the declaration, shall be subject to | ||||||
16 | cancellation by more than
1/2 of the votes of the unit | ||||||
17 | owners, other than the developer, cast at a
special meeting | ||||||
18 | of members called for that purpose during a period of 90
| ||||||
19 | days prior to the expiration of the 2 year period if the | ||||||
20 | board of managers
is elected by the unit owners, otherwise | ||||||
21 | by more than 1/2 of the underlying
condominium board of | ||||||
22 | managers. At least 60 days prior to the expiration of
the 2 | ||||||
23 | year period, the board of directors, or, if the board is | ||||||
24 | still under
developer control, then the board of managers | ||||||
25 | or the developer shall send
notice to every unit owner or | ||||||
26 | underlying condominium board of managers,
notifying them |
| |||||||
| |||||||
1 | of this provision, of what contracts, leases and other
| ||||||
2 | agreements are affected, and of the procedure for calling a | ||||||
3 | meeting of the
unit owners or for action by the underlying | ||||||
4 | condominium board of managers
for the purpose of acting to | ||||||
5 | terminate such contracts, leases or other
agreements. | ||||||
6 | During the 90 day period the other party to the contract,
| ||||||
7 | lease, or other agreement shall also have the right of | ||||||
8 | cancellation.
| ||||||
9 | (6) The statute of limitations for any actions in law | ||||||
10 | or equity which
the master association may bring shall not | ||||||
11 | begin to run until the unit
owners or underlying | ||||||
12 | condominium board of managers have elected a majority
of | ||||||
13 | the members of the board of directors.
| ||||||
14 | (g) In the event of any resale of a unit in a master | ||||||
15 | association by a unit
owner other than the developer, the owner | ||||||
16 | shall obtain from
the board of directors and shall make | ||||||
17 | available for inspection to the
prospective purchaser, upon | ||||||
18 | demand, the following:
| ||||||
19 | (1) A copy of the declaration, other instruments and | ||||||
20 | any rules and
regulations.
| ||||||
21 | (2) A statement of any liens, including a statement of | ||||||
22 | the account of
the unit setting forth the amounts of unpaid | ||||||
23 | assessments and other charges
due and owing.
| ||||||
24 | (3) A statement of any capital expenditures | ||||||
25 | anticipated by the
association within the current or | ||||||
26 | succeeding 2 fiscal years.
|
| |||||||
| |||||||
1 | (4) A statement of the status and amount of any reserve | ||||||
2 | for
replacement fund and any portion of such fund earmarked | ||||||
3 | for any specified
project by the board of directors.
| ||||||
4 | (5) A copy of the statement of financial condition of | ||||||
5 | the association
for the last fiscal year for which such a | ||||||
6 | statement is available.
| ||||||
7 | (6) A statement of the status of any pending suits or | ||||||
8 | judgments in which
the association is a party.
| ||||||
9 | (7) A statement setting forth what insurance coverage | ||||||
10 | is provided for
all unit owners by the association.
| ||||||
11 | (8) A statement that any improvements or alterations | ||||||
12 | made to the unit,
or any part of the common areas assigned | ||||||
13 | thereto, by the prior unit owner
are in good faith believed | ||||||
14 | to be in compliance with the declaration of the
master | ||||||
15 | association.
| ||||||
16 | The principal officer of the unit owner's association or | ||||||
17 | such
other officer as is specifically designated shall furnish | ||||||
18 | the above
information when requested to do so in writing, | ||||||
19 | within
30 days of receiving the request.
| ||||||
20 | A reasonable fee covering the direct out-of-pocket cost of | ||||||
21 | copying
and providing such information may be charged
by the | ||||||
22 | association or its board of directors to the unit
seller for | ||||||
23 | providing the information.
| ||||||
24 | (g-1) The purchaser of a unit of a common interest | ||||||
25 | community at a judicial foreclosure sale, other than a | ||||||
26 | mortgagee, who takes possession of a unit of a common interest |
| |||||||
| |||||||
1 | community pursuant to a court order or a purchaser who acquires | ||||||
2 | title from a mortgagee shall have the duty to pay the | ||||||
3 | proportionate share, if any, of the common expenses for the | ||||||
4 | unit that would have become due in the absence of any | ||||||
5 | assessment acceleration during the 6 months immediately | ||||||
6 | preceding institution of an action to enforce the collection of | ||||||
7 | assessments, and that remain unpaid by the owner during whose | ||||||
8 | possession the assessments accrued. If the outstanding | ||||||
9 | assessments are paid at any time during any action to enforce | ||||||
10 | the collection of assessments, the purchaser shall have no | ||||||
11 | obligation to pay any assessments that accrued before he or she | ||||||
12 | acquired title. The notice of sale of a unit of a common | ||||||
13 | interest community under subsection (c) of Section 15-1507 of | ||||||
14 | the Code of Civil Procedure shall state that the purchaser of | ||||||
15 | the unit other than a mortgagee shall pay the assessments | ||||||
16 | required by this subsection (g-1).
| ||||||
17 | (h) Errors and omissions.
| ||||||
18 | (1) If there is an omission or error in the declaration | ||||||
19 | or other
instrument of the master association, the master | ||||||
20 | association may correct
the error or omission by an | ||||||
21 | amendment to the declaration or other
instrument, as may be | ||||||
22 | required to conform it to this Act, to any other
applicable | ||||||
23 | statute, or to the declaration. The amendment shall be | ||||||
24 | adopted
by vote of two-thirds of the members of the board | ||||||
25 | of directors or by a
majority vote of the unit owners at a | ||||||
26 | meeting called for that purpose,
unless the Act or the |
| |||||||
| |||||||
1 | declaration of the master association specifically
| ||||||
2 | provides for greater percentages or different procedures.
| ||||||
3 | (2) If, through a scrivener's error, a unit has not | ||||||
4 | been
designated as owning an appropriate undivided share of | ||||||
5 | the common areas
or does not bear an appropriate share of | ||||||
6 | the common expenses, or if
all of the common expenses or | ||||||
7 | all of the common elements in
the condominium have not been | ||||||
8 | distributed in the declaration, so that the
sum total of | ||||||
9 | the shares of common areas which have been distributed or | ||||||
10 | the
sum total of the shares of the common expenses fail to | ||||||
11 | equal 100%, or if it
appears that more than 100% of the | ||||||
12 | common elements or common expenses have
been distributed, | ||||||
13 | the error may be corrected by operation of law by filing
an | ||||||
14 | amendment to the declaration, approved by vote of | ||||||
15 | two-thirds of the
members of the board of directors or a | ||||||
16 | majority vote of the unit owners at
a meeting called for | ||||||
17 | that purpose, which proportionately
adjusts all percentage | ||||||
18 | interests so that the total is equal to 100%,
unless the | ||||||
19 | declaration specifically provides for a different | ||||||
20 | procedure or
different percentage vote by the owners of the | ||||||
21 | units and the owners of
mortgages thereon affected by | ||||||
22 | modification being made in the undivided
interest in the | ||||||
23 | common areas, the number of votes in the unit owners
| ||||||
24 | association or the liability for common expenses | ||||||
25 | appertaining to the unit.
| ||||||
26 | (3) If an omission or error or a scrivener's error in |
| |||||||
| |||||||
1 | the
declaration or other instrument is corrected by vote of | ||||||
2 | two-thirds of
the members of the board of directors | ||||||
3 | pursuant to the authority established
in subdivisions | ||||||
4 | (h)(1) or (h)(2) of this Section, the board, upon
written | ||||||
5 | petition by unit owners with 20% of the votes of the | ||||||
6 | association or
resolutions adopted by the board of managers | ||||||
7 | or board of directors of the
condominium and common | ||||||
8 | interest community associations which select 20% of
the | ||||||
9 | members of the board of directors of the master | ||||||
10 | association, whichever
is applicable, received within 30 | ||||||
11 | days of the board action, shall call a
meeting of the unit | ||||||
12 | owners or the boards of the condominium and common
interest | ||||||
13 | community associations which select members of the board of
| ||||||
14 | directors of the master association within 30 days of the | ||||||
15 | filing of the
petition or receipt of the condominium and | ||||||
16 | common interest community
association resolution to | ||||||
17 | consider the board action. Unless a majority of
the votes | ||||||
18 | of the unit owners of the association are cast at the | ||||||
19 | meeting to
reject the action, or board of managers or board | ||||||
20 | of directors of
condominium and common interest community | ||||||
21 | associations which select over
50% of the members of the | ||||||
22 | board of the master association adopt resolutions
prior to | ||||||
23 | the meeting rejecting the action of the board of directors | ||||||
24 | of the
master association, it is ratified whether or not a | ||||||
25 | quorum is present.
| ||||||
26 | (4) The procedures for amendments set forth in this |
| |||||||
| |||||||
1 | subsection (h)
cannot be used if such an amendment would | ||||||
2 | materially or adversely affect
property rights of the unit | ||||||
3 | owners unless the affected unit owners consent
in writing. | ||||||
4 | This Section does not restrict the powers of the | ||||||
5 | association
to otherwise amend the declaration, bylaws, or | ||||||
6 | other condominium
instruments, but authorizes a simple | ||||||
7 | process of amendment requiring a
lesser vote for the | ||||||
8 | purpose of correcting defects, errors, or omissions
when | ||||||
9 | the property rights of the unit owners are not materially | ||||||
10 | or adversely
affected.
| ||||||
11 | (5) If there is an omission or error in the declaration | ||||||
12 | or other
instruments that may not be corrected by an | ||||||
13 | amendment procedure
set forth in subdivision (h)(1) or | ||||||
14 | (h)(2) of this Section, then
the circuit court in the | ||||||
15 | county in which the master
association is located shall | ||||||
16 | have jurisdiction to hear a petition of one or
more of the | ||||||
17 | unit owners thereon or of the association, to correct the | ||||||
18 | error
or omission, and the action may be a class action. | ||||||
19 | The court may require
that one or more methods of | ||||||
20 | correcting the error or omission be submitted
to the unit | ||||||
21 | owners to determine the most acceptable correction. All | ||||||
22 | unit
owners in the association must be joined as parties to | ||||||
23 | the action. Service
of process on owners may be by | ||||||
24 | publication, but the plaintiff shall furnish
all unit | ||||||
25 | owners not personally served with process with copies of | ||||||
26 | the
petition and final judgment of the court by certified |
| |||||||
| |||||||
1 | mail, return receipt
requested, at their last known | ||||||
2 | address.
| ||||||
3 | (6) Nothing contained in this Section shall be | ||||||
4 | construed to invalidate
any provision of a declaration | ||||||
5 | authorizing the developer to amend
an instrument prior to | ||||||
6 | the latest date on which the initial
membership meeting of | ||||||
7 | the unit owners must be held, whether or not it has
| ||||||
8 | actually been held, to bring the instrument into compliance | ||||||
9 | with the legal
requirements of the Federal National | ||||||
10 | Mortgage Association, the Federal Home
Loan Mortgage | ||||||
11 | Corporation, the Federal Housing Administration, the | ||||||
12 | United
States Veterans Administration or their respective | ||||||
13 | successors and assigns.
| ||||||
14 | (i) The provisions of subsections (c) through (h) are | ||||||
15 | applicable
to all declarations, other condominium instruments, | ||||||
16 | and other
duly recorded covenants establishing the powers and | ||||||
17 | duties of the master
association recorded under this Act. Any | ||||||
18 | portion of a declaration,
other condominium instrument, or | ||||||
19 | other duly recorded covenant establishing
the powers and duties | ||||||
20 | of a master association which contains provisions
contrary to | ||||||
21 | the provisions of subsection (c) through (h) shall be void as
| ||||||
22 | against public policy and ineffective. Any declaration, other | ||||||
23 | condominium
instrument, or other duly recorded covenant | ||||||
24 | establishing the powers and
duties of the master association | ||||||
25 | which fails to contain the provisions
required by subsections | ||||||
26 | (c) through (h) shall be deemed to incorporate such
provisions |
| |||||||
| |||||||
1 | by operation of law.
| ||||||
2 | (j) (Blank). The provisions of subsections (c) through (h) | ||||||
3 | are applicable to
all common interest community associations | ||||||
4 | and their unit owners for common
interest community | ||||||
5 | associations which are subject to the provisions of Section
| ||||||
6 | 9-102(a)(8) of the Code of Civil Procedure. For purposes of | ||||||
7 | this
subsection, the terms "common interest community" and | ||||||
8 | "unit owners"
shall have the same meaning as set forth in | ||||||
9 | Section 9-102(c) of the Code of
Civil Procedure.
| ||||||
10 | (Source: P.A. 96-1045, eff. 7-14-10.)
| ||||||
11 | Section 999. Effective date. This Act takes effect upon | ||||||
12 | becoming law.
|