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Public Act 097-0605
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SB1651 Enrolled | LRB097 08355 AJO 48482 b |
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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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:
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(765 ILCS 160/1-5)
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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.
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"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.
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(Source: P.A. 96-1400, eff. 7-29-10.)
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(765 ILCS 160/1-15)
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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.
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(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.)
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(765 ILCS 160/1-20)
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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.
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(Source: P.A. 96-1400, eff. 7-29-10.)
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(765 ILCS 160/1-25)
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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; |
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(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.
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(Source: P.A. 96-1400, eff. 7-29-10.)
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(765 ILCS 160/1-30)
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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.)
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(765 ILCS 160/1-35)
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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:
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(1) A copy of the declaration, other instruments, and |
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any rules and regulations.
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(2) A statement of any liens, including a statement of |
the account of the unit setting forth the amounts of unpaid |
assessments and other charges due and owing.
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(3) A statement of any capital expenditures |
anticipated by the association within the current or |
succeeding 2 fiscal years.
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(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 .
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(5) A copy of the statement of financial condition of |
the association for the last fiscal year for which such a |
statement is available.
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(6) A statement of the status of any pending suits or |
judgments in which the association is a party.
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(7) A statement setting forth what insurance coverage |
is provided for all unit owners by the association.
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(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.
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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.
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(Source: P.A. 96-1400, eff. 7-29-10.)
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(765 ILCS 160/1-40)
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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.
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(Source: P.A. 96-1400, eff. 7-29-10.)
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(765 ILCS 160/1-45)
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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.
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(Source: P.A. 96-1400, eff. 7-29-10.)
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(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.
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(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 |
|
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 |
|
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 |
|
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:
|
|
(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 |
|
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 |
|
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 |
|
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 |
|
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 |
|
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, |
|
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 |
|
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 |
|
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.
|
|
(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 |
|
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 |
|
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.
|
|
(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 |
|
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 |
|
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 |
|
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 |
|
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 |
|
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 |
|
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.
|