Bill Text: IL SB3180 | 2009-2010 | 96th General Assembly | Enrolled

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Bill Title: Creates the Common Interest Community Association Act. Defines terms. Provides that the Act applies to common interest community associations and that a community instrument that is inconsistent with the Act is void as against public policy. Provides principles for the interpretation of community instruments. Provides that an initial declaration limiting ownership, rental, or occupancy of a unit to a person 55 years of age or older shall be valid and not a violation of the Illinois Human Rights Act. Provides for the election of a board, meetings, board functions, and finances of a common interest community association. Provides that an association may utilize a management company, but if that company serves more than one association it shall maintain separate accounts for each association. Provides remedies in an action brought by a unit owner against a board or board members to enforce the Act. Provides that notwithstanding any bylaws, rules, or other instruments of a common interest community association, a board may not prohibit the display of the American flag or a military flag, or both, on limited common areas or on an owner's unit. Creates the Service Member Residential Property Act. Defines terms. Provides that the Act applies to a lease of residential premises by a service member or a service member's dependents. Provides that an applicable lease may be terminated by a service member or the member's dependents after his or her entry into military service. Provides for the manner of lease termination and for arrearages, obligations, and liabilities. Provides that a violation of the Act constitutes a civil rights violation under the Illinois Human Rights Act. Provides that remedies under the Act are in addition to and do not preclude any remedy for wrongful conversion. Amends the Condominium Property Act. Provides that the Act does not apply to a common interest community association that is governed by the Common Interest Community Association Act. Amends the Illinois Human Rights Act by adding a violation of the Service Member Residential Property Act, in addition to 9 other Acts, as a civil rights violation under the Act.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2010-07-29 - Public Act . . . . . . . . . 96-1400 [SB3180 Detail]

Download: Illinois-2009-SB3180-Enrolled.html

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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Article 1
Section 1-1. Short title. This Article may be cited as the
Common Interest Community Association Act, and references in
this Article to "this Act" mean this Article.
Section 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.
"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
aggregate in interest of such undivided ownership. "Majority"

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or "majority of the members of the board of the common interest
community association" means more than 50% of the total number
of persons constituting such board pursuant to the bylaws. Any
specified percentage of the members of the common interest
community association means that percentage of the total number
of persons constituting such board pursuant to the bylaws.
"Management company" or "community association manager"
means a person, partnership, corporation, or other legal entity
entitled to transact business on behalf of others, acting on
behalf of or as an agent for an association for the purpose of
carrying out the duties, responsibilities, and other
obligations necessary for the day to day operation and
management of any property subject to this Act.
"Master association" means a common interest community
association that exercises its powers on behalf of one or more
condominium or other common interest community associations or
for the benefit of unit owners in such associations.
"Meeting of the board" or "board meeting" means any
gathering of a quorum of the members of the board of the common
interest community association held for the purpose of
conducting board business.
"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

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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.
"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
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

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interests, individually or collectively, aggregate fee simple
absolute ownership of a unit.
Section 1-10. Applicability. Unless expressly provided
otherwise herein, the provisions of this Act are applicable to
all common interest community associations in this State.
Section 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
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.
Section 1-20. Amendments to the declaration or bylaws.

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(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
executed and recorded by the president of the board or such
other officer authorized by the common interest community
association or the 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.
Section 1-25. Board of managers, board of directors,

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duties, elections, and voting.
(a) There shall be an election of the board of managers or
board of directors from among the unit owners of a common
interest community association.
(b) 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.
(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
unit owners or until unit owners holding 20% of the votes of
the association request a meeting of the unit owners to fill
the vacancy for the balance of the term. A meeting of the 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 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

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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 unit owners and who shall, in general, perform all the
duties incident to the office of secretary; and
(3) treasurer from among the members of the board, who
shall keep the financial records and books of account.
(g) If no election is held to elect board members within
the time period specified in the bylaws, or within a reasonable
amount of time thereafter not to exceed 90 days, then 20% of
the 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, if only
one of the multiple owners is present at a meeting of the
association, he or she is entitled to cast all the votes
allocated to that unit. A unit owner may vote:
(1) by proxy executed in writing by the unit owner or
by his or her duly authorized attorney in fact, provided,

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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
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 whereby
the voting ballot is marked only with the voting interest for
the unit and the vote itself, provided that the association
shall further adopt rules to verify the status of the 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) 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 unit owners called for purposes
of electing members of the board, shall have the right to vote
for the election of members of the common interest community
association and to be elected to and serve on the board unless

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the seller expressly retains in writing any or all of such
rights.
Section 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 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

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unless the declaration or bylaws provide otherwise; however,
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, 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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Section 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 unit owners may remove a board member
as a director at a duty called special meeting of the unit
owners.
(d) In the event of any resale of a unit in a common
interest community association by a unit owner other than the
developer, the board shall make available for inspection to the
prospective purchaser, upon demand, the following:
(1) A copy of the declaration, other instruments, and
any rules and regulations.
(2) A statement of any liens, including a statement of

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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.
(5) A copy of the statement of financial condition of
the association for the last fiscal year for which such a
statement is available.
(6) A statement of the status of any pending suits or
judgments in which the association is a party.
(7) A statement setting forth what insurance coverage
is provided for all unit owners by the association.
(8) A statement that any improvements or alterations
made to the unit, or any part of the common areas assigned
thereto, by the prior unit owner are in good faith believed
to be in compliance with the declaration of the
association.
The principal officer of the board or such other officer as
is specifically designated shall furnish the above information
within 30 days after receiving a written request for such
information.
A reasonable fee covering the direct out-of-pocket cost of
copying and providing such information may be charged by the

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association or the board to the unit seller for providing the
information.
Section 1-40. Meetings.
(a) Written notice of any membership meeting shall be
mailed or delivered giving members no less than 10 and no more
than 30 days notice of the time, place, and purpose of such
meeting.
(b) Meetings.
(1) Twenty percent of the unit owners shall constitute
a quorum, unless the community instruments indicate
otherwise.
(2) The 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.
(3) Special meetings of the board may be called by the
president or 25% of the members of the board. Special
meetings of the unit owners may be called by the president,
the board, or by 20% of 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 mail, personal delivery, or by posting
copies of notices of meetings in entranceways, elevators,
or other conspicuous places in the common interest

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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
concerning the adoption of (i) the proposed annual budget,
(ii) regular assessments, or (iii) a separate or special
assessment within 10 to 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
a court or administrative tribunal, or when the common
interest community association finds that such an action is
probable or imminent, (ii) to consider 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,

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the duration and meeting order for the unit owner comment
period is within the sole discretion of the board.
Section 1-45. Finances.
(a) Each unit owner shall receive, at least 30 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 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.
(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

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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.
(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 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

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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.
Section 1-50. Administration of property prior to election
of the initial board of directors.
(a) Until the election of the initial board whose
declaration is recorded on or after the effective date of this
Act, the same rights, titles, powers, privileges, trusts,
duties, and obligations that are vested in or imposed upon the
board by this Act or in the declaration or other duly recorded
covenant shall be held and performed by the developer.
(b) The election of the initial board, whose declaration is
recorded on or after the effective date of this Act, 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 after the request, with respect to each subsequent meeting
to elect members of the board of directors.

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(c) If the initial board of a common interest community
association whose declaration is recorded on or after the
effective date of this Act is not elected by the time
established in subsection (b), the developer shall continue in
office for a period of 30 days, whereupon written notice of his
or her resignation shall be sent to all of the unit owners or
members.
(d) Within 60 days following the election of a majority of
the board, other than the developer, by unit owners, the
developer shall deliver to the board:
(1) 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.
(2) 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.

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(3) Association funds, which shall have been at all
times segregated from any other moneys of the developer.
(4) 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.
(5) 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 paragraph.
(6) If the developer fails to fully comply with this
subsection (d) within the 60 days provided and fails to
fully comply within 10 days after 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 subsection (d). 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

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reasonable attorney's fees and costs incurred from and
after the date of expiration of the 10-day demand.
(e) With respect to any common interest community
association whose declaration is recorded on or after the
effective date of this Act, any contract, lease, or other
agreement made prior to the election of a majority of the board
other than the developer by or on behalf of unit owners or
underlying common interest community association, the
association or the board, which extends for a period of more
than 2 years from the recording of the declaration, shall be
subject to cancellation by more than one-half 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 is elected by the unit owners, otherwise by more than
one-half of the underlying common interest community
association board. At least 60 days prior to the expiration of
the 2-year period, the board or, if the board is still under
developer control, the developer shall send notice to every
unit owner 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
board 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.

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(f) The statute of limitations for any actions in law or
equity that the board may bring shall not begin to run until
the unit owners have elected a majority of the members of the
board.
Section 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 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 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.
Section 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

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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 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 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

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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 unit
owners with 20% of the votes of the association received within
30 days of the board action, shall call a meeting of the unit
owners within 30 days of the filing of the petition 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, 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.
Section 1-65. Management company. A management company
holding reserve funds of an association shall at all times
maintain a separate account for each association, unless by
contract the board of managers of the association authorizes a
management company to maintain association reserves in a single
account with other associations for investment purposes. With

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the consent of the board of managers of the association, the
management company may hold all operating funds of associations
which it manages in a single operating account, but shall at
all times maintain records identifying all moneys of each
association in such operating account. Such operating and
reserve funds held by the management company for the
association shall not be subject to attachment by any creditor
of the management company. A management company that provides
common interest community association management services for
more than one common interest community association shall
maintain separate, segregated accounts for each common
interest community association. The funds shall not, in any
event, be commingled with funds of the management company, the
firm of the management company, or any other common interest
community association. The maintenance of these accounts shall
be custodial, and the accounts shall be in the name of the
respective common interest community association.
Section 1-70. Display of American flag or military flag.
(a) Notwithstanding any provision in the declaration,
bylaws, community instruments, rules, regulations, or
agreements or other instruments of a common interest community
association or a board's construction of any of those
instruments, a board may not prohibit the display of the
American flag or a military flag, or both, on or within the
limited common areas and facilities of a unit owner or on the

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immediately adjacent exterior of the building in which the unit
of a unit owner is located. A board may adopt reasonable rules
and regulations, consistent with Sections 4 through 10 of
Chapter 1 of Title 4 of the United States Code, regarding the
placement and manner of display of the American flag and a
board may adopt reasonable rules and regulations regarding the
placement and manner of display of a military flag. A board may
not prohibit the installation of a flagpole for the display of
the American flag or a military flag, or both, on or within the
limited common areas and facilities of a unit owner or on the
immediately adjacent exterior of the building in which the unit
of a unit owner is located, but a board may adopt reasonable
rules and regulations regarding the location and size of
flagpoles.
(b) As used in this Section:
"American flag" means the flag of the United States (as
defined in Section 1 of Chapter 1 of Title 4 of the United
States Code and the Executive Orders entered in connection
with that Section) made of fabric, cloth, or paper
displayed from a staff or flagpole or in a window, but
"American flag" does not include a depiction or emblem of
the American flag made of lights, paint, roofing, siding,
paving materials, flora, or balloons, or any other similar
building, landscaping, or decorative component.
"Military flag" means a flag of any branch of the
United States armed forces or the Illinois National Guard

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made of fabric, cloth, or paper displayed from a staff or
flagpole or in a window, but "military flag" does not
include a depiction or emblem of a military flag made of
lights, paint, roofing, siding, paving materials, flora,
or balloons, or any other similar building, landscaping, or
decorative component.
Section 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 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.

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Article 5
Section 5-1. Short title. This Article may be cited as the
Service Member Residential Property Act, and references in this
Article to "this Act" mean this Article.
Section 5-5. Definitions. For purposes of this Act:
"Military service" means Federal service or active duty
with any branch of service hereinafter referred to as well as
training or education under the supervision of the United
States preliminary to induction into the military service for a
period of not less than 180 days. "Military service" also
includes any period of active duty with the State of Illinois
pursuant to the orders of the President of the United States or
the Governor.
"Service member" means and includes the following persons
and no others: all members of the Army of the United States,
the United States Navy, the Marine Corps, the Air Force, the
Coast Guard and all members of the State Militia called into
the service or training of the United States of America or of
this State.
The foregoing definitions shall apply both to voluntary
enlistment and to induction into service by draft or
conscription.

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Section 5-10. Service member residential lease. The
provisions of this Act apply to a lease of residential premises
occupied, or intended to be occupied, by a service member or a
service member's dependents if:
(1) the lease is executed by or on behalf of a person
who thereafter and during the term of the lease enters
military service; or
(2) the service member, while in military service,
executes the lease and thereafter receives military orders
for a permanent change of station or to deploy with a
military unit, or as an individual in support of a military
operation, for a period of not less than 90 days.
Section 5-15. Termination by lessee. The lessee on a lease
described in Section 5-10 may, at the lessee's option,
terminate the lease at any time after (i) the lessee's entry
into military service or (ii) the date of the lessee's military
orders described in subdivision (2) of Section 5-10, as the
case may be.
Section 5-20. Manner of termination; effective date of
termination.
(a) A lessee's termination of a lease pursuant to this
subsection shall terminate any obligation a dependent of the
lessee may have under the lease.
(b) Termination of a lease under Section 5-15 is made by

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delivery by the lessee of written notice of such termination,
and a copy of the service member's military orders, to the
lessor, the lessor's grantee, the lessor's agent, or the
agent's grantee. Delivery of notice may be accomplished (i) by
hand delivery, (ii) by private business carrier, or (iii) by
placing the written notice in the United States mail in an
envelope with sufficient postage and with return receipt
requested, and addressed as designated by the lessor, the
lessor's grantee, the lessor's agent, or the agent's grantee.
(c) In the case of a lease that provides for monthly
payment of rent, termination of the lease under Section 5-15 is
effective 30 days after the first date on which the next rental
payment is due and payable after the date on which the notice
under subsection (b) of this Section is delivered. In the case
of any other lease, termination of the lease under Section 5-15
is effective on the last day of the month following the month
in which the notice is delivered.
Section 5-25. Arrearages, obligations, and liabilities.
(a) Rents or lease amounts unpaid for the period preceding
the effective date of the lease termination shall be paid on a
prorated basis. Rents or lease amounts paid in advance for a
period after the effective date of the termination of the lease
shall be refunded to the lessee by the lessor, the lessor's
grantee, the lessor's agent, or the agent's grantee within 30
days after the effective date of the termination of the lease.

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Any relief granted by this Act to a service member may be
modified as justice and equity require.
(b) Upon termination of a rental agreement under this Act,
the tenant is liable for the rent due under the rental
agreement prorated to the effective date of the termination
payable at such time as would have otherwise been required by
the terms of the rental agreement. The tenant is not liable for
any other rent or any liquidated damages due to the early
termination; provided, however, that a tenant may be liable for
the cost of repairing damage to the premises caused by an act
or omission of the tenant.
Section 5-30. Right of action. A person who is aggrieved by
a violation of this Act shall have a right of action in circuit
court to enforce the provisions of this Act and in doing so may
recover attorney's fees and costs. The remedy and rights
provided under this Act are in addition to and do not preclude
any remedy for wrongful conversion otherwise available under
law to the person claiming relief under this Act, including any
award for consequential or punitive damages.
Article 99
Section 99-5. Effective date. This Act takes effect upon