Bill Text: IL SB2480 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Condominium Property Act. Provides that an association or management company shall not charge a fee for filing a copy or memorandum of a lease of a unit with the association or management company. Effective July 1, 2020.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2021-01-13 - Session Sine Die [SB2480 Detail]
Download: Illinois-2019-SB2480-Introduced.html
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1 | AN ACT concerning property.
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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 Condominium Property Act is amended by | |||||||||||||||||||
5 | changing Section 18 as follows:
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6 | (765 ILCS 605/18) (from Ch. 30, par. 318)
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7 | Sec. 18. Contents of bylaws. The bylaws shall provide for | |||||||||||||||||||
8 | at least
the following:
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9 | (a)(1) The election from among the unit owners of a | |||||||||||||||||||
10 | board of managers,
the number of persons constituting such | |||||||||||||||||||
11 | board, and that the terms of at
least one-third of the | |||||||||||||||||||
12 | members of the board shall expire annually and that
all | |||||||||||||||||||
13 | members of the board shall be elected at large; if there | |||||||||||||||||||
14 | are multiple owners of a single unit, only one of the | |||||||||||||||||||
15 | multiple
owners shall be eligible to serve as a member of | |||||||||||||||||||
16 | the board at any one time;
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17 | (2) the powers and duties of the board;
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18 | (3) the compensation, if any, of the members of the | |||||||||||||||||||
19 | board;
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20 | (4) the method of removal from office of members of the | |||||||||||||||||||
21 | board;
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22 | (5) that the board may engage the services of a manager | |||||||||||||||||||
23 | or managing agent;
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1 | (6) that each unit owner shall receive, at least 25 | ||||||
2 | days prior to the
adoption thereof by the board of | ||||||
3 | managers, a copy of the proposed annual
budget together | ||||||
4 | with an indication of which portions are intended for
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5 | reserves, capital expenditures or repairs or payment of | ||||||
6 | real estate taxes;
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7 | (7) that the board of managers shall annually supply to
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8 | all unit owners an itemized accounting of the common | ||||||
9 | expenses
for the preceding year actually incurred or paid, | ||||||
10 | together
with an indication of which portions were for | ||||||
11 | reserves, capital
expenditures or repairs or payment of | ||||||
12 | real estate taxes and
with a tabulation of the amounts | ||||||
13 | collected pursuant to the
budget or assessment, and showing | ||||||
14 | the net excess or
deficit of income over expenditures plus | ||||||
15 | reserves;
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16 | (8)(i) that each unit owner shall receive notice, in | ||||||
17 | the same manner
as is provided in this Act for membership | ||||||
18 | meetings, of any meeting of the
board of managers | ||||||
19 | concerning the adoption of the proposed annual budget and
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20 | regular assessments pursuant thereto or to adopt a separate | ||||||
21 | (special)
assessment, (ii) that except as provided in | ||||||
22 | subsection (iv) below, if an
adopted
budget or any separate | ||||||
23 | assessment adopted by the board would result in the
sum of | ||||||
24 | all regular and separate assessments payable in the current | ||||||
25 | fiscal year
exceeding 115% of the sum of all regular and | ||||||
26 | separate
assessments payable during the
preceding fiscal |
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1 | year, the
board of managers, upon written petition by unit | ||||||
2 | owners with 20 percent of
the votes of the association | ||||||
3 | delivered to the board within 21
days of the board action,
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4 | shall call a meeting of the unit owners within 30 days of | ||||||
5 | the date of
delivery of the petition to consider the budget | ||||||
6 | or separate
assessment; unless a
majority of
the total | ||||||
7 | votes of the unit owners are cast at the meeting to reject | ||||||
8 | the
budget or separate assessment,
it is ratified, (iii) | ||||||
9 | that any common expense not set forth in the budget or
any | ||||||
10 | increase in assessments over the amount adopted in the | ||||||
11 | budget shall be
separately assessed against all unit | ||||||
12 | owners, (iv) that separate assessments for
expenditures | ||||||
13 | relating to emergencies or mandated by law may be adopted | ||||||
14 | by the
board of managers without being subject to unit | ||||||
15 | owner approval or the
provisions of item (ii) above or item | ||||||
16 | (v) below. As used
herein, "emergency" means an immediate | ||||||
17 | danger to the structural integrity of
the
common elements | ||||||
18 | or to the life, health, safety or property of the unit | ||||||
19 | owners,
(v) that assessments
for additions and alterations | ||||||
20 | to the common elements or to association-owned
property not | ||||||
21 | included in the adopted annual budget, shall be separately
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22 | assessed and are subject to approval of two-thirds of the | ||||||
23 | total votes of all
unit owners, (vi) that the board of | ||||||
24 | managers may adopt separate assessments
payable over more | ||||||
25 | than one fiscal year. With respect to multi-year | ||||||
26 | assessments
not governed by items (iv) and (v), the entire |
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1 | amount of the multi-year
assessment shall be deemed | ||||||
2 | considered and authorized in the first fiscal year
in which | ||||||
3 | the assessment is approved;
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4 | (9)(A) that every meeting of the board of managers | ||||||
5 | shall be open to any unit
owner, except that the board may | ||||||
6 | close any portion of a noticed meeting or meet separately | ||||||
7 | from a noticed meeting to: (i) discuss litigation
when an | ||||||
8 | action against or on behalf of the particular association | ||||||
9 | has been
filed and is pending in a court or administrative | ||||||
10 | tribunal,
or when the board of managers finds that such an | ||||||
11 | action is probable
or imminent, (ii) discuss the | ||||||
12 | appointment, employment, engagement,
or dismissal of an | ||||||
13 | employee, independent contractor, agent, or other provider | ||||||
14 | of goods and services, (iii) interview a potential | ||||||
15 | employee, independent contractor, agent, or other provider | ||||||
16 | of goods and services, (iv) discuss violations of rules and
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17 | regulations of the association, (v) discuss a unit owner's | ||||||
18 | unpaid share of common
expenses, or (vi) consult with the | ||||||
19 | association's legal counsel; that any vote on these matters | ||||||
20 | shall take place at a meeting of the board of managers or
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21 | portion thereof open to any unit owner; | ||||||
22 | (B) that board members may participate in and act at | ||||||
23 | any meeting of the board of managers in person, by | ||||||
24 | telephonic means, or by use of any acceptable technological | ||||||
25 | means whereby all persons participating in the meeting can | ||||||
26 | communicate with each other; that participation |
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1 | constitutes attendance and presence in person at the | ||||||
2 | meeting; | ||||||
3 | (C) that any unit owner may record the
proceedings at | ||||||
4 | meetings of the board of managers or portions thereof | ||||||
5 | required to be open by this
Act by tape, film or other | ||||||
6 | means, and that the board may prescribe reasonable
rules | ||||||
7 | and regulations to govern the right to make such | ||||||
8 | recordings; | ||||||
9 | (D) that
notice of every meeting of the board of | ||||||
10 | managers shall be given to every board member at least 48 | ||||||
11 | hours
prior thereto, unless the board member waives notice | ||||||
12 | of the meeting pursuant to subsection (a) of Section 18.8; | ||||||
13 | and | ||||||
14 | (E) that notice of every meeting
of the board of | ||||||
15 | managers shall be posted in entranceways,
elevators, or | ||||||
16 | other conspicuous places in the condominium at least 48 | ||||||
17 | hours
prior to the meeting of the board of managers except | ||||||
18 | where there is no
common entranceway for 7 or more units, | ||||||
19 | the board of managers may designate
one or more locations | ||||||
20 | in the proximity of these units where the notices of
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21 | meetings shall be posted; that notice of every meeting of | ||||||
22 | the board of managers shall also be given at least 48 hours | ||||||
23 | prior to the meeting, or such longer notice as this Act may | ||||||
24 | separately require, to: (i) each unit owner who has | ||||||
25 | provided the association with written authorization to | ||||||
26 | conduct business by acceptable technological means, and |
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1 | (ii) to the extent that the condominium instruments of an | ||||||
2 | association require, to each other unit owner, as required | ||||||
3 | by subsection (f) of Section 18.8, by mail or delivery, and | ||||||
4 | that no other notice of a meeting of the board of managers | ||||||
5 | need be given to any unit owner;
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6 | (10) that the board shall meet at least 4 times | ||||||
7 | annually;
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8 | (11) that no member of the board or officer shall be | ||||||
9 | elected for a term
of more than 2 years, but that officers | ||||||
10 | and board members may succeed
themselves;
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11 | (12) the designation of an officer to mail and receive | ||||||
12 | all notices and
execute amendments to condominium | ||||||
13 | instruments as provided for in this Act
and in the | ||||||
14 | condominium instruments;
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15 | (13) the method of filling vacancies on the board
which | ||||||
16 | shall include authority for the remaining members of the | ||||||
17 | board to
fill the vacancy by two-thirds vote until the next | ||||||
18 | annual meeting of unit
owners or for a period terminating | ||||||
19 | no later than 30 days following the
filing of a petition | ||||||
20 | signed by unit owners holding 20% of the votes of the
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21 | association requesting a meeting of the unit owners to fill | ||||||
22 | the vacancy for
the balance of the term, and that a meeting | ||||||
23 | of the unit owners shall be
called for purposes of filling | ||||||
24 | a vacancy on the board no later than 30 days
following the | ||||||
25 | filing of a petition signed by unit owners holding 20% of | ||||||
26 | the
votes of the association requesting such a meeting, and |
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1 | the method of filling
vacancies among the officers that | ||||||
2 | shall include the authority for the members
of the board to | ||||||
3 | fill the vacancy for the unexpired portion of the term;
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4 | (14) what percentage of the board of managers, if other | ||||||
5 | than a majority,
shall constitute a quorum;
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6 | (15) provisions concerning notice of board meetings to | ||||||
7 | members of the
board;
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8 | (16) the board of managers may not enter into a | ||||||
9 | contract with a
current board member
or with a corporation | ||||||
10 | or partnership in which a board
member or a member of the | ||||||
11 | board member's immediate family has 25% or
more interest, | ||||||
12 | unless notice of intent to enter the
contract is given to | ||||||
13 | unit owners within 20 days after a decision is made
to | ||||||
14 | enter into the contract and the unit owners are
afforded an | ||||||
15 | opportunity by filing a petition, signed by 20% of the unit
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16 | owners, for an election to approve or disapprove the | ||||||
17 | contract;
such petition shall be filed within 30 days after | ||||||
18 | such notice and such
election shall be held within 30 days | ||||||
19 | after filing the petition; for purposes
of this subsection, | ||||||
20 | a board member's immediate family means the board member's
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21 | spouse, parents, and children;
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22 | (17) that the board of managers may disseminate
to unit | ||||||
23 | owners biographical and background information about | ||||||
24 | candidates for
election to the board if (i) reasonable | ||||||
25 | efforts to identify all candidates are
made and all | ||||||
26 | candidates are given an opportunity to include |
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1 | biographical and
background information in the information | ||||||
2 | to be disseminated; and (ii) the
board does not express a | ||||||
3 | preference in favor of any candidate;
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4 | (18) any proxy distributed for board elections
by the | ||||||
5 | board of managers gives unit owners the
opportunity to | ||||||
6 | designate any person as the proxy holder, and gives the | ||||||
7 | unit
owner the opportunity to express a preference for any | ||||||
8 | of the known
candidates for the board or to write in a | ||||||
9 | name;
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10 | (19) that special meetings of the board of managers can | ||||||
11 | be called by
the president or 25% of the members of the | ||||||
12 | board;
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13 | (20) that the board of managers may establish
and | ||||||
14 | maintain a system of master metering of public utility | ||||||
15 | services and
collect payments in connection therewith, | ||||||
16 | subject to the requirements of the
Tenant Utility Payment | ||||||
17 | Disclosure Act; and
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18 | (21) that the board may ratify and confirm actions of | ||||||
19 | the
members of the board taken in response to an emergency, | ||||||
20 | as that
term is defined in subdivision (a)(8)(iv) of this | ||||||
21 | Section; that
the board shall give notice to the unit | ||||||
22 | owners of: (i) the
occurrence of the emergency event within | ||||||
23 | 7 business days after
the emergency event, and (ii) the | ||||||
24 | general description of the
actions taken to address the | ||||||
25 | event within 7 days after the
emergency event. | ||||||
26 | The intent of the provisions of Public Act 99-472 |
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1 | adding this paragraph (21) is to empower and support boards | ||||||
2 | to act in
emergencies. | ||||||
3 | (b)(1) What percentage of the unit owners, if other | ||||||
4 | than 20%, shall
constitute a quorum provided that, for | ||||||
5 | condominiums with 20 or more units,
the percentage of unit | ||||||
6 | owners constituting a quorum shall be 20% unless the
unit | ||||||
7 | owners holding a majority of the percentage interest in the
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8 | association provide for a higher percentage, provided that | ||||||
9 | in voting on amendments to the association's bylaws, a unit | ||||||
10 | owner who is in arrears on the unit owner's regular or | ||||||
11 | separate assessments for 60 days or more, shall not be | ||||||
12 | counted for purposes of determining if a quorum is present, | ||||||
13 | but that unit owner retains the right to vote on amendments | ||||||
14 | to the association's bylaws;
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15 | (2) that the association shall have one class of | ||||||
16 | membership;
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17 | (3) that the members shall hold an annual meeting, one | ||||||
18 | of the purposes
of which shall be to elect members of the | ||||||
19 | board of managers;
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20 | (4) the method of calling meetings of the unit owners;
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21 | (5) that special meetings of the members can be called | ||||||
22 | by the president,
board of managers, or by 20% of unit | ||||||
23 | owners;
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24 | (6) that written notice of any membership meeting shall | ||||||
25 | be mailed
or delivered giving members no less than 10 and | ||||||
26 | no more than 30 days
notice of the time, place and purpose |
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1 | of such meeting except that notice may be sent, to the | ||||||
2 | extent the condominium instruments or rules adopted | ||||||
3 | thereunder expressly so provide, by electronic | ||||||
4 | transmission consented to by the unit owner to whom the | ||||||
5 | notice is given, provided the director and officer or his | ||||||
6 | agent certifies in writing to the delivery by electronic | ||||||
7 | transmission;
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8 | (7) that voting shall be on a percentage basis, and | ||||||
9 | that the percentage
vote to which each unit is entitled is | ||||||
10 | the percentage interest of the
undivided ownership of the | ||||||
11 | common elements appurtenant thereto, provided
that the | ||||||
12 | bylaws may provide for approval by unit owners in | ||||||
13 | connection with
matters where the requisite approval on a | ||||||
14 | percentage basis is not specified
in this Act, on the basis | ||||||
15 | of one vote per unit;
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16 | (8) that, where there is more than one owner of a unit, | ||||||
17 | if only one
of the multiple owners is present at a meeting | ||||||
18 | of the association, he is
entitled to cast all the votes | ||||||
19 | allocated to that unit, if more than one of
the multiple | ||||||
20 | owners are present, the votes allocated to that unit may be
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21 | cast only in accordance with the agreement of a majority in | ||||||
22 | interest of the
multiple owners, unless the declaration | ||||||
23 | expressly provides otherwise, that
there is majority | ||||||
24 | agreement if any one of the multiple owners cast the
votes | ||||||
25 | allocated to that unit without protest being made promptly | ||||||
26 | to the
person presiding over the meeting by any of the |
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1 | other owners of the unit;
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2 | (9)(A) except as provided in subparagraph (B) of this | ||||||
3 | paragraph (9) in
connection with board elections, that
a | ||||||
4 | unit owner may vote by proxy executed in writing by the | ||||||
5 | unit
owner or by his duly authorized attorney in fact; that | ||||||
6 | the proxy must bear the date of
execution
and, unless the | ||||||
7 | condominium instruments or the written proxy itself | ||||||
8 | provide
otherwise, is
invalid after 11 months from the date | ||||||
9 | of its execution; to the extent the condominium instruments | ||||||
10 | or rules adopted thereunder expressly so provide, a vote or | ||||||
11 | proxy may be submitted by electronic transmission, | ||||||
12 | provided that any such electronic transmission shall | ||||||
13 | either set forth or be submitted with information from | ||||||
14 | which it can be determined that the electronic transmission | ||||||
15 | was authorized by the unit owner or the unit owner's proxy;
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16 | (B) that if a rule adopted at least 120 days before a | ||||||
17 | board election
or the
declaration or bylaws provide for | ||||||
18 | balloting as set forth in this subsection,
unit
owners may | ||||||
19 | not vote by proxy in board elections, but may vote only (i) | ||||||
20 | by
submitting an association-issued ballot in person at the | ||||||
21 | election meeting or
(ii) by
submitting an | ||||||
22 | association-issued ballot to the association or its | ||||||
23 | designated
agent
by mail or other means of delivery | ||||||
24 | specified in the declaration, bylaws, or
rule; that
the | ||||||
25 | ballots shall be mailed or otherwise distributed to unit | ||||||
26 | owners not less
than 10
and not more than 30 days before |
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1 | the election meeting, and the board shall give
unit owners | ||||||
2 | not less than 21 days' prior written notice of the deadline | ||||||
3 | for
inclusion of a candidate's name on the ballots; that | ||||||
4 | the deadline shall be no
more
than 7 days before the | ||||||
5 | ballots are mailed or otherwise distributed to unit
owners; | ||||||
6 | that
every such ballot must include the names of all | ||||||
7 | candidates who have given the
board or its authorized agent | ||||||
8 | timely written notice of their candidacy and must
give the | ||||||
9 | person casting the ballot the opportunity to cast votes for | ||||||
10 | candidates
whose names do not appear on the ballot; that a | ||||||
11 | ballot received by the
association
or
its designated agent | ||||||
12 | after the close of voting shall not be counted; that a
unit
| ||||||
13 | owner
who submits a ballot by mail or other means of | ||||||
14 | delivery specified in the
declaration, bylaws, or rule may | ||||||
15 | request and cast a ballot in person at the
election
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16 | meeting, and thereby void any ballot previously submitted | ||||||
17 | by that unit owner; | ||||||
18 | (B-5) that if a rule adopted at least 120 days before a | ||||||
19 | board election or the declaration or bylaws provide for | ||||||
20 | balloting as set forth in this subparagraph, unit owners | ||||||
21 | may not vote by proxy in board elections, but may vote only | ||||||
22 | (i) by submitting an association-issued ballot in person at | ||||||
23 | the election meeting; or (ii) by any acceptable | ||||||
24 | technological means as defined in Section 2 of this Act; | ||||||
25 | instructions regarding the use of electronic means for | ||||||
26 | voting shall be distributed to all unit owners not less |
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1 | than 10 and not more than 30 days before the election | ||||||
2 | meeting, and the board shall give unit owners not less than | ||||||
3 | 21 days' prior written notice of the deadline for inclusion | ||||||
4 | of a candidate's name on the ballots; the deadline shall be | ||||||
5 | no more than 7 days before the instructions for voting | ||||||
6 | using electronic or acceptable technological means is | ||||||
7 | distributed to unit owners; every instruction notice must | ||||||
8 | include the names of all candidates who have given the | ||||||
9 | board or its authorized agent timely written notice of | ||||||
10 | their candidacy and must give the person voting through | ||||||
11 | electronic or acceptable technological means the | ||||||
12 | opportunity to cast votes for candidates whose names do not | ||||||
13 | appear on the ballot; a unit owner who submits a vote using | ||||||
14 | electronic or acceptable technological means may request | ||||||
15 | and cast a ballot in person at the election meeting, | ||||||
16 | thereby voiding any vote previously submitted by that unit | ||||||
17 | owner;
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18 | (C) that if a written petition by unit owners with at | ||||||
19 | least 20% of the
votes of
the association is delivered to | ||||||
20 | the board within 30 days after the board's
approval
of a | ||||||
21 | rule adopted pursuant to subparagraph (B) or subparagraph | ||||||
22 | (B-5) of this paragraph (9), the board
shall call a meeting | ||||||
23 | of the unit owners within 30 days after the date of
| ||||||
24 | delivery of
the petition; that unless a majority of the | ||||||
25 | total votes of the unit owners are
cast
at the
meeting to | ||||||
26 | reject the rule, the rule is ratified;
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1 | (D) that votes cast by ballot under subparagraph (B) or | ||||||
2 | electronic or acceptable technological means under | ||||||
3 | subparagraph (B-5) of this paragraph (9) are valid for the | ||||||
4 | purpose of establishing a quorum; | ||||||
5 | (10) that the association may, upon adoption of the | ||||||
6 | appropriate rules by
the board of managers, conduct | ||||||
7 | elections by secret ballot whereby the voting
ballot is | ||||||
8 | marked only with the percentage interest for the unit and | ||||||
9 | the vote
itself, provided that the board further adopt | ||||||
10 | rules to verify the status of the
unit owner issuing a | ||||||
11 | proxy or casting a ballot; and further, that a candidate
| ||||||
12 | for election to the board of managers or such
candidate's | ||||||
13 | representative shall have the right to be present at the
| ||||||
14 | counting of ballots at such election;
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15 | (11) that in the event of a resale of a condominium | ||||||
16 | unit the purchaser
of a unit from a seller other than the | ||||||
17 | developer pursuant to an installment sales
contract for | ||||||
18 | purchase shall during such times as he or she resides in | ||||||
19 | the
unit be counted toward a quorum for purposes of | ||||||
20 | election of members of the
board of managers at any meeting | ||||||
21 | of the unit owners called for purposes of
electing members | ||||||
22 | of the board, shall have the right to vote for the
election | ||||||
23 | of members of the board of managers and to be elected to | ||||||
24 | and serve
on the board of managers unless the seller | ||||||
25 | expressly retains in writing any
or all of such rights. In | ||||||
26 | no event may the seller and purchaser both be
counted |
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1 | toward a quorum, be permitted to vote for a particular | ||||||
2 | office or be
elected and serve on the board. Satisfactory | ||||||
3 | evidence of the installment sales contract
shall be made | ||||||
4 | available to the association or its agents. For
purposes of | ||||||
5 | this subsection, "installment sales contract" shall have | ||||||
6 | the same
meaning as set forth in Section 5 of the | ||||||
7 | Installment Sales Contract Act and Section 1(e) of the | ||||||
8 | Dwelling Unit Installment Contract Act;
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9 | (12) the method by which matters subject to the | ||||||
10 | approval of unit owners
set forth in this Act, or in the | ||||||
11 | condominium instruments, will be
submitted to the unit | ||||||
12 | owners at special membership meetings called for such
| ||||||
13 | purposes; and
| ||||||
14 | (13) that matters subject to the affirmative vote of | ||||||
15 | not less than 2/3
of the votes of unit owners at a meeting | ||||||
16 | duly called for that purpose,
shall include, but not be | ||||||
17 | limited to:
| ||||||
18 | (i) merger or consolidation of the association;
| ||||||
19 | (ii) sale, lease, exchange, or other disposition | ||||||
20 | (excluding the mortgage
or pledge) of all, or | ||||||
21 | substantially all of the property and assets of the
| ||||||
22 | association; and
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23 | (iii) the purchase or sale of land or of units on | ||||||
24 | behalf of all unit owners.
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25 | (c) Election of a president from among the board of | ||||||
26 | managers, who shall
preside over the meetings of the board |
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1 | of managers and of the unit owners.
| ||||||
2 | (d) Election of a secretary from among the board of | ||||||
3 | managers, who shall
keep the minutes of all meetings
of the | ||||||
4 | board of managers and of the unit owners and who shall, in | ||||||
5 | general,
perform all the duties incident to the office of | ||||||
6 | secretary.
| ||||||
7 | (e) Election of a treasurer from among the board of | ||||||
8 | managers, who shall
keep the financial records and
books of | ||||||
9 | account.
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10 | (f) Maintenance, repair and replacement of the common | ||||||
11 | elements and
payments therefor, including the method of | ||||||
12 | approving payment vouchers.
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13 | (g) An association with 30 or more units shall obtain | ||||||
14 | and maintain
fidelity insurance covering persons who | ||||||
15 | control or disburse funds of the
association for the | ||||||
16 | maximum amount of coverage available to protect funds
in | ||||||
17 | the custody or control of the association plus the | ||||||
18 | association reserve
fund. All management companies which | ||||||
19 | are responsible for the funds held or
administered by the | ||||||
20 | association shall maintain and furnish to the
association a | ||||||
21 | fidelity bond for the maximum amount of coverage available | ||||||
22 | to
protect funds in the custody of the management company | ||||||
23 | at any time. The
association shall bear the cost of the | ||||||
24 | fidelity insurance and fidelity
bond, unless otherwise | ||||||
25 | provided by contract between the association and a
| ||||||
26 | management company. The association shall be the direct |
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| |||||||
1 | obligee of any
such fidelity bond. A management company | ||||||
2 | holding reserve funds of an
association shall at all times | ||||||
3 | maintain a separate account for each
association, | ||||||
4 | provided, however, that for investment purposes, the Board | ||||||
5 | of
Managers of an association may authorize a management | ||||||
6 | company to maintain
the association's reserve funds in a | ||||||
7 | single interest bearing account with
similar funds of other | ||||||
8 | associations. The management company shall at all
times | ||||||
9 | maintain records identifying all moneys of each | ||||||
10 | association in such
investment account. The management | ||||||
11 | company may hold all operating funds of
associations which | ||||||
12 | it manages in a single operating account but shall at
all | ||||||
13 | times maintain records identifying all moneys of each | ||||||
14 | association in
such operating account. Such operating and | ||||||
15 | reserve funds held by the
management company for the | ||||||
16 | association shall not be subject to attachment
by any | ||||||
17 | creditor of the management company.
| ||||||
18 | For the purpose of this subsection, a management | ||||||
19 | company shall be
defined as a person, partnership, | ||||||
20 | corporation, or other legal entity
entitled to transact | ||||||
21 | business on behalf of others, acting on behalf of or
as an | ||||||
22 | agent for a unit owner, unit owners or association of unit | ||||||
23 | owners for
the purpose of carrying out the duties, | ||||||
24 | responsibilities, and other
obligations necessary for the | ||||||
25 | day to day operation and management of any
property subject | ||||||
26 | to this Act. For purposes of this subsection, the term
|
| |||||||
| |||||||
1 | "fiduciary insurance coverage" shall be defined as both a | ||||||
2 | fidelity bond and
directors and officers liability | ||||||
3 | coverage, the fidelity bond in the full
amount of | ||||||
4 | association funds and association reserves that will be in | ||||||
5 | the
custody of the association, and the directors and | ||||||
6 | officers liability
coverage at a level as shall be | ||||||
7 | determined to be reasonable by the board of
managers, if | ||||||
8 | not otherwise established by the declaration or by laws.
| ||||||
9 | Until one year after September 21, 1985 (the effective | ||||||
10 | date of Public Act 84-722),
if a condominium association | ||||||
11 | has reserves plus assessments in excess of
$250,000 and | ||||||
12 | cannot reasonably obtain 100% fidelity bond coverage for | ||||||
13 | such
amount, then it must obtain a fidelity bond coverage | ||||||
14 | of $250,000.
| ||||||
15 | (h) Method of estimating the amount of the annual | ||||||
16 | budget, and the manner
of assessing and collecting from the | ||||||
17 | unit owners their respective shares of
such estimated | ||||||
18 | expenses, and of any other expenses lawfully agreed upon.
| ||||||
19 | (i) That upon 10 days notice to the manager or board of | ||||||
20 | managers and
payment of a reasonable fee, any unit owner | ||||||
21 | shall be furnished a statement
of his account setting forth | ||||||
22 | the amount of any unpaid assessments or other
charges due | ||||||
23 | and owing from such owner.
| ||||||
24 | (j) Designation and removal of personnel necessary for | ||||||
25 | the maintenance,
repair and replacement of the common | ||||||
26 | elements.
|
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| |||||||
1 | (k) Such restrictions on and requirements respecting | ||||||
2 | the use and
maintenance of the units and the use of the | ||||||
3 | common elements, not set forth
in the declaration, as are | ||||||
4 | designed to prevent unreasonable interference
with the use | ||||||
5 | of their respective units and of the common elements by the
| ||||||
6 | several unit owners.
| ||||||
7 | (l) Method of adopting and of amending administrative | ||||||
8 | rules and
regulations governing the operation and use of | ||||||
9 | the common elements.
| ||||||
10 | (m) The percentage of votes required to modify or amend | ||||||
11 | the bylaws, but
each one of the particulars set forth in | ||||||
12 | this section shall always be
embodied in the bylaws.
| ||||||
13 | (n)(i) The provisions of this Act, the declaration, | ||||||
14 | bylaws, other
condominium instruments, and rules and | ||||||
15 | regulations that relate to the use
of the individual unit | ||||||
16 | or the common elements shall be applicable to
any person | ||||||
17 | leasing a unit and shall be deemed to be incorporated in | ||||||
18 | any
lease executed or renewed on or after August 30, 1984 | ||||||
19 | (the effective date of Public Act 83-1271). | ||||||
20 | (ii) With regard to any lease entered into subsequent | ||||||
21 | to July 1, 1990 (the
effective date of Public Act 86-991), | ||||||
22 | the unit owner leasing the
unit shall deliver a copy of the | ||||||
23 | signed lease to the board or if the
lease is oral, a | ||||||
24 | memorandum of the lease, not later than the date of
| ||||||
25 | occupancy or 10 days after the lease is signed, whichever | ||||||
26 | occurs first. The association or management company shall |
| |||||||
| |||||||
1 | not charge a fee for filing a copy or memorandum of the | ||||||
2 | lease with the association or management company. In
| ||||||
3 | addition to any other remedies, by filing an action jointly | ||||||
4 | against the
tenant and the unit owner, an association may | ||||||
5 | seek to enjoin a tenant from
occupying a unit or seek to | ||||||
6 | evict a tenant under the provisions of Article
IX of the | ||||||
7 | Code of Civil Procedure for failure of the lessor-owner to
| ||||||
8 | comply with the leasing requirements prescribed by
this | ||||||
9 | Section or by the declaration, bylaws, and
rules and | ||||||
10 | regulations. The board of managers may proceed directly | ||||||
11 | against a
tenant, at law or in equity, or under the | ||||||
12 | provisions of Article IX of the
Code of Civil Procedure, | ||||||
13 | for any other breach by tenant of any
covenants, rules, | ||||||
14 | regulations or bylaws.
| ||||||
15 | (o) The association shall have no authority to forbear | ||||||
16 | the payment
of assessments by any unit owner.
| ||||||
17 | (p) That when 30% or fewer of the units, by number,
| ||||||
18 | possess over 50% in the aggregate of the votes in the | ||||||
19 | association,
any percentage vote of members specified | ||||||
20 | herein or in the condominium
instruments shall require the | ||||||
21 | specified percentage by number of units
rather than by | ||||||
22 | percentage of interest in the common elements allocated
to | ||||||
23 | units that would otherwise be applicable and garage units | ||||||
24 | or storage units, or both, shall have, in total, no more | ||||||
25 | votes than their aggregate percentage of ownership in the | ||||||
26 | common elements; this shall mean that if garage units or |
| |||||||
| |||||||
1 | storage units, or both, are to be given a vote, or portion | ||||||
2 | of a vote, that the association must add the total number | ||||||
3 | of votes cast of garage units, storage units, or both, and | ||||||
4 | divide the total by the number of garage units, storage | ||||||
5 | units, or both, and multiply by the aggregate percentage of | ||||||
6 | ownership of garage units and storage units to determine | ||||||
7 | the vote, or portion of a vote, that garage units or | ||||||
8 | storage units, or both, have. For purposes of this | ||||||
9 | subsection (p), when making a determination of whether 30% | ||||||
10 | or fewer of the units, by number, possess over 50% in the | ||||||
11 | aggregate of the votes in the association, a unit shall not | ||||||
12 | include a garage unit or a storage unit.
| ||||||
13 | (q) That a unit owner may not assign, delegate, | ||||||
14 | transfer, surrender, or
avoid the duties, | ||||||
15 | responsibilities, and liabilities of a unit owner under | ||||||
16 | this
Act, the condominium instruments, or the rules and | ||||||
17 | regulations of the
Association; and that such an attempted | ||||||
18 | assignment, delegation, transfer,
surrender, or avoidance | ||||||
19 | shall be deemed void.
| ||||||
20 | The provisions of this Section are applicable to all | ||||||
21 | condominium
instruments recorded under this Act. Any portion of | ||||||
22 | a condominium
instrument which contains provisions contrary to | ||||||
23 | these provisions shall be
void as against public policy and | ||||||
24 | ineffective. Any such instrument which
fails to contain the | ||||||
25 | provisions required by this Section shall be deemed to
| ||||||
26 | incorporate such provisions by operation of law.
|
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| |||||||
1 | (Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17; 99-642, | ||||||
2 | eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff. 1-1-18; | ||||||
3 | 100-863, eff. 8-14-18 .)
| ||||||
4 | Section 99. Effective date. This Act takes effect July 1, | ||||||
5 | 2020.
|