Bill Text: IL SB3715 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Amends the Condominium Property Act. Prohibits directors from voting by proxy or by secret ballot at board meetings with the exception that secret ballots may be used in the election of officers. Prohibits voting by proxy or by secret ballot at any meeting or special meeting if a final decision may be made affecting (i) the expenditure of association funds; and (ii) architectural decisions affecting a unit owner's residential property. Requires removal from the board members who have been charged with a number of crimes including but not limited to (i) forgery of a ballot envelope or voting certificate used in a homeowners' association election; (ii) theft or embezzlement involving the association's funds or property; and destruction of or the refusal to allow inspection or copying of an official record of a homeowners' association which is accessible to parcel owners within the time periods required by law in furtherance of any crime. Provides that if charges are resolved without a finding of guilt or without acceptance of a plea of guilty or nolo contendere, the member of the board shall be reinstated for any remainder of their term. Requires members of the board who are appointed by the developer to disclose to the association their relationship to the developer each calendar year in which they serve on the board. Requires members appointed by the developer must disclose any other activity that may reasonably be construed to be a conflict of interest. Provides that members of the board must disclose any activity that may be reasonably construed to be a conflict of interest at least 14 days before voting on an issue or entering into a contract that is the subject of the conflict. Imposes a fine of not more than $2,500 if the board fails to provide documents to any member of the association as provided in this Act. Requires that the declaration or bylaws of a condominium association require mediation or arbitration of disputes in which the matter in controversy has either no specific monetary value or a value of $10,000 or less, other than the levying and collection of assessments, or that arises out of violations of the declaration, bylaws, or rules and regulations of the condominium association. Provides that the declaration or bylaws of a condominium association may require mediation or arbitration of disputes for all other disputes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB3715 Detail]

Download: Illinois-2023-SB3715-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3715 Introduced 2/9/2024, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED:
See Index
Amends the Condominium Property Act. Prohibits directors from voting by proxy or by secret ballot at board meetings with the exception that secret ballots may be used in the election of officers. Prohibits voting by proxy or by secret ballot at any meeting or special meeting if a final decision may be made affecting (i) the expenditure of association funds; and (ii) architectural decisions affecting a unit owner's residential property. Requires removal from the board members who have been charged with a number of crimes including but not limited to (i) forgery of a ballot envelope or voting certificate used in a homeowners' association election; (ii) theft or embezzlement involving the association's funds or property; and destruction of or the refusal to allow inspection or copying of an official record of a homeowners' association which is accessible to parcel owners within the time periods required by law in furtherance of any crime. Provides that if charges are resolved without a finding of guilt or without acceptance of a plea of guilty or nolo contendere, the member of the board shall be reinstated for any remainder of their term. Requires members of the board who are appointed by the developer to disclose to the association their relationship to the developer each calendar year in which they serve on the board. Requires members appointed by the developer must disclose any other activity that may reasonably be construed to be a conflict of interest. Provides that members of the board must disclose any activity that may be reasonably construed to be a conflict of interest at least 14 days before voting on an issue or entering into a contract that is the subject of the conflict. Imposes a fine of not more than $2,500 if the board fails to provide documents to any member of the association as provided in this Act. Requires that the declaration or bylaws of a condominium association require mediation or arbitration of disputes in which the matter in controversy has either no specific monetary value or a value of $10,000 or less, other than the levying and collection of assessments, or that arises out of violations of the declaration, bylaws, or rules and regulations of the condominium association. Provides that the declaration or bylaws of a condominium association may require mediation or arbitration of disputes for all other disputes.
LRB103 38640 JRC 68777 b
A BILL FOR
SB3715 LRB103 38640 JRC 68777 b
AN ACT concerning property.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Condominium Property Act is amended by
changing Sections 18, 18.4, 19, and 32 as follows:
(765 ILCS 605/18) (from Ch. 30, par. 318)
Sec. 18. Contents of bylaws. The bylaws shall provide for
at least the following:
(a)(1) The election from among the unit owners of a
board of managers, the number of persons constituting such
board, and that the terms of at least one-third of the
members of the board shall expire annually and that all
members of the board shall be elected at large; 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. A declaration first submitting
property to the provisions of this Act, in accordance with
Section 3 after the effective date of this amendatory Act
of the 102nd General Assembly, or an amendment to the
condominium instruments adopted in accordance with Section
27 after the effective date of this amendatory Act of the
102nd General Assembly, may provide that a majority of the
board of managers, or such lesser number as may be

SB3715 - 2 - LRB103 38640 JRC 68777 b
specified in the declaration, must be comprised of unit
owners occupying their unit as their primary residence;
provided that the condominium instruments may not require
that more than a majority of the board shall be comprised
of unit owners who occupy their unit as their principal
residence;
(2) the powers and duties of the board;
(3) the compensation, if any, of the members of the
board;
(4) the method of removal from office of members of
the board;
(5) that the board may engage the services of a
manager or managing agent;
(6) that each unit owner shall receive, at least 25
days prior to the adoption thereof by the board of
managers, 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;
(7) that the board of managers 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

SB3715 - 3 - LRB103 38640 JRC 68777 b
showing the net excess or deficit of income over
expenditures plus reserves;
(8)(i) that each unit owner shall receive notice, in
the same manner as is provided in this Act for membership
meetings, of any meeting of the board of managers
concerning the adoption of the proposed annual budget and
regular assessments pursuant thereto or to adopt a
separate (special) assessment, (ii) that except as
provided in subsection (iv) below, 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 board of managers, upon written
petition by unit owners with 20 percent of the votes of the
association delivered to the board within 21 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 is ratified, (iii) that 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, (iv) that separate
assessments for expenditures relating to emergencies or

SB3715 - 4 - LRB103 38640 JRC 68777 b
mandated by law may be adopted by the board of managers
without being subject to unit owner approval or the
provisions of item (ii) above or item (v) below. As used
herein, "emergency" means an immediate danger to the
structural integrity of the common elements or to the
life, health, safety or property of the unit owners, (v)
that assessments for additions and alterations to the
common elements 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, (vi) that the board of
managers may adopt separate assessments payable over more
than one fiscal year. With respect to multi-year
assessments not governed by items (iv) and (v), 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;
(9)(A) that every meeting of the board of managers
shall be open to any unit owner, except that the board may
close any portion of a noticed meeting or meet separately
from a noticed meeting to: (i) 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 board of managers finds that such an
action is probable or imminent, (ii) discuss the
appointment, employment, engagement, or dismissal of an

SB3715 - 5 - LRB103 38640 JRC 68777 b
employee, independent contractor, agent, or other provider
of goods and services, (iii) interview a potential
employee, independent contractor, agent, or other provider
of goods and services, (iv) discuss violations of rules
and regulations of the association, (v) discuss a unit
owner's unpaid share of common expenses, or (vi) consult
with the association's legal counsel; that any vote on
these matters shall take place at a meeting of the board of
managers or portion thereof open to any unit owner;
(B) that board members may participate in and act at
any meeting of the board of managers in person, by
telephonic means, or by use of any acceptable
technological means whereby all persons participating in
the meeting can communicate with each other; that
participation constitutes attendance and presence in
person at the meeting;
(C) that any unit owner may record the proceedings at
meetings of the board of managers or portions thereof
required to be open by this Act by tape, film or other
means, and that the board may prescribe reasonable rules
and regulations to govern the right to make such
recordings;
(D) that notice of every meeting of the board of
managers shall be given to every board member at least 48
hours prior thereto, unless the board member waives notice
of the meeting pursuant to subsection (a) of Section 18.8;

SB3715 - 6 - LRB103 38640 JRC 68777 b
and
(E) that notice of every meeting of the board of
managers 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 managers except
where there is no common entranceway for 7 or more units,
the board of managers may designate one or more locations
in the proximity of these units where the notices of
meetings shall be posted; that notice of every meeting of
the board of managers shall also be given at least 48 hours
prior to the meeting, or such longer notice as this Act may
separately require, to: (i) each unit owner who has
provided the association with written authorization to
conduct business by acceptable technological means, and
(ii) to the extent that the condominium instruments of an
association require, to each other unit owner, as required
by subsection (f) of Section 18.8, by mail or delivery,
and that no other notice of a meeting of the board of
managers need be given to any unit owner;
(10) that the board shall meet at least 4 times
annually;
(11) that no member of the board or officer shall be
elected for a term of more than 2 years, but that officers
and board members may succeed themselves;
(12) the designation of an officer to mail and receive
all notices and execute amendments to condominium

SB3715 - 7 - LRB103 38640 JRC 68777 b
instruments as provided for in this Act and in the
condominium instruments;
(13) the method of filling vacancies on the board
which shall include authority for the remaining members of
the board to fill the vacancy by two-thirds vote until the
next annual meeting of unit owners or for a period
terminating no later than 30 days following the filing of
a petition signed by unit owners holding 20% of the votes
of the association requesting a meeting of the unit owners
to fill the vacancy for the balance of the term, and that 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, and the method of filling vacancies among
the officers that shall include the authority for the
members of the board to fill the vacancy for the unexpired
portion of the term;
(14) what percentage of the board of managers, if
other than a majority, shall constitute a quorum;
(15) provisions concerning notice of board meetings to
members of the board;
(16) the board of managers 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 the
board member's immediate family has 25% or more interest,

SB3715 - 8 - LRB103 38640 JRC 68777 b
unless notice of intent to enter 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 30 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;
(17) that the board of managers may disseminate to
unit owners biographical and background information about
candidates for election to the board if (i) reasonable
efforts to identify all candidates are made and all
candidates are given an opportunity to include
biographical and background information in the information
to be disseminated; and (ii) the board does not express a
preference in favor of any candidate;
(18) any proxy distributed for board elections by the
board of managers gives unit owners the opportunity to
designate any person as the proxy holder, and gives the
unit owner the opportunity to express a preference for any
of the known candidates for the board or to write in a
name;
(19) that special meetings of the board of managers
can be called by the president or 25% of the members of the

SB3715 - 9 - LRB103 38640 JRC 68777 b
board;
(20) that the board of managers may establish and
maintain a system of master metering of public utility
services and collect payments in connection therewith,
subject to the requirements of the Tenant Utility Payment
Disclosure Act; and
(21) that the board may ratify and confirm actions of
the members of the board taken in response to an
emergency, as that term is defined in subdivision
(a)(8)(iv) of this Section; that the board shall give
notice to the unit owners of: (i) the occurrence of the
emergency event within 7 business days after the emergency
event, and (ii) the general description of the actions
taken to address the event within 7 days after the
emergency event.
The intent of the provisions of Public Act 99-472
adding this paragraph (21) is to empower and support
boards to act in emergencies.
(b)(1) What percentage of the unit owners, if other
than 20%, shall constitute a quorum provided that, for
condominiums with 20 or more units, the percentage of unit
owners constituting a quorum shall be 20% unless the unit
owners holding a majority of the percentage interest in
the association provide for a higher percentage, provided
that in voting on amendments to the association's bylaws,
a unit owner who is in arrears on the unit owner's regular

SB3715 - 10 - LRB103 38640 JRC 68777 b
or separate assessments for 60 days or more, shall not be
counted for purposes of determining if a quorum is
present, but that unit owner retains the right to vote on
amendments to the association's bylaws;
(2) that the association shall have one class of
membership;
(3) that the members shall hold an annual meeting, one
of the purposes of which shall be to elect members of the
board of managers;
(4) the method of calling meetings of the unit owners;
(5) that special meetings of the members can be called
by the president, board of managers, or by 20% of unit
owners;
(6) that 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 except that notice may be sent, to
the extent the condominium instruments or rules adopted
thereunder expressly so provide, by electronic
transmission consented to by the unit owner to whom the
notice is given, provided the director and officer or his
agent certifies in writing to the delivery by electronic
transmission;
(7) that voting shall be on a percentage basis, and
that the percentage vote to which each unit is entitled is
the percentage interest of the undivided ownership of the

SB3715 - 11 - LRB103 38640 JRC 68777 b
common elements appurtenant thereto, provided that the
bylaws may provide for approval by unit owners in
connection with matters where the requisite approval on a
percentage basis is not specified in this Act, on the
basis of one vote per unit;
(8) that, 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 is entitled to cast all the votes
allocated to that unit, if more than one of the multiple
owners are present, the votes allocated to that unit may
be cast only in accordance with the agreement of a
majority in interest of the multiple owners, unless the
declaration expressly provides otherwise, that there is
majority agreement if any one of the multiple owners cast
the votes allocated to that unit without protest being
made promptly to the person presiding over the meeting by
any of the other owners of the unit;
(9)(A) except as provided in subparagraph (B) of this
paragraph (9) in connection with board elections, that a
unit owner may vote by proxy executed in writing by the
unit owner or by his duly authorized attorney in fact;
that the proxy must bear the date of execution and, unless
the condominium instruments or the written proxy itself
provide otherwise, is invalid after 11 months from the
date of its execution; to the extent the condominium
instruments or rules adopted thereunder expressly so

SB3715 - 12 - LRB103 38640 JRC 68777 b
provide, a vote or proxy may be submitted by electronic
transmission, provided that any such electronic
transmission shall either set forth or be submitted with
information from which it can be determined that the
electronic transmission was authorized by the unit owner
or the unit owner's proxy;
(B) that if a rule adopted at least 120 days before a
board election or the declaration or bylaws provide for
balloting as set forth in this subsection, unit owners may
not vote by proxy in board elections, but may vote only (i)
by submitting an association-issued ballot in person at
the election meeting or (ii) by submitting an
association-issued ballot to the association or its
designated agent by mail or other means of delivery
specified in the declaration, bylaws, or rule; that the
ballots shall be mailed or otherwise distributed to unit
owners not less than 10 and not more than 30 days before
the election meeting, and the board shall give unit owners
not less than 21 days' prior written notice of the
deadline for inclusion of a candidate's name on the
ballots; that the deadline shall be no more than 7 days
before the ballots are mailed or otherwise distributed to
unit owners; that every such ballot must include the names
of all candidates who have given the board or its
authorized agent timely written notice of their candidacy
and must give the person casting the ballot the

SB3715 - 13 - LRB103 38640 JRC 68777 b
opportunity to cast votes for candidates whose names do
not appear on the ballot; that a ballot received by the
association or its designated agent after the close of
voting shall not be counted; that a unit owner who submits
a ballot by mail or other means of delivery specified in
the declaration, bylaws, or rule may request and cast a
ballot in person at the election meeting, and thereby void
any ballot previously submitted by that unit owner;
(B-5) that if a rule adopted at least 120 days before a
board election or the declaration or bylaws provide for
balloting as set forth in this subparagraph, unit owners
may not vote by proxy in board elections, but may vote only
(i) by submitting an association-issued ballot in person
at the election meeting; or (ii) by any acceptable
technological means as defined in Section 2 of this Act;
instructions regarding the use of electronic means for
voting shall be distributed to all unit owners not less
than 10 and not more than 30 days before the election
meeting, and the board shall give unit owners not less
than 21 days' prior written notice of the deadline for
inclusion of a candidate's name on the ballots; the
deadline shall be no more than 7 days before the
instructions for voting using electronic or acceptable
technological means is distributed to unit owners; every
instruction notice must include the names of all
candidates who have given the board or its authorized

SB3715 - 14 - LRB103 38640 JRC 68777 b
agent timely written notice of their candidacy and must
give the person voting through electronic or acceptable
technological means the opportunity to cast votes for
candidates whose names do not appear on the ballot; a unit
owner who submits a vote using electronic or acceptable
technological means may request and cast a ballot in
person at the election meeting, thereby voiding any vote
previously submitted by that unit owner;
(B-10) that directors may not vote by proxy or by
secret ballot at board meetings with the exception that
secret ballots may be used in the election of officers.
This prohibition against voting by proxy or by secret
ballot also applies to any meeting or special meeting if a
final decision may be made affecting (i) the expenditure
of association funds; and (ii) architectural decisions
affecting a unit owner's residential property;
(C) that if a written petition by unit owners with at
least 20% of the votes of the association is delivered to
the board within 30 days after the board's approval of a
rule adopted pursuant to subparagraph (B) or subparagraph
(B-5) of this paragraph (9), the board shall call a
meeting of the unit owners within 30 days after the date of
delivery of the petition; that unless a majority of the
total votes of the unit owners are cast at the meeting to
reject the rule, the rule is ratified;
(D) that votes cast by ballot under subparagraph (B)

SB3715 - 15 - LRB103 38640 JRC 68777 b
or electronic or acceptable technological means under
subparagraph (B-5) of this paragraph (9) are valid for the
purpose of establishing a quorum;
(10) that the association may, upon adoption of the
appropriate rules by the board of managers, conduct
elections by secret ballot whereby the voting ballot is
marked only with the percentage interest for the unit and
the vote itself, provided that the board further adopt
rules to verify the status of the unit owner issuing a
proxy or casting a ballot; and further, that a candidate
for election to the board of managers or such candidate's
representative shall have the right to be present at the
counting of ballots at such election;
(11) that in the event of a resale of a condominium
unit the purchaser of a unit from a seller other than the
developer pursuant to an installment sales 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 managers 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 board of managers and to be
elected to and serve on the board of managers unless the
seller expressly retains in writing any or all of such
rights. In no event may the seller and purchaser both be
counted toward a quorum, be permitted to vote for a

SB3715 - 16 - LRB103 38640 JRC 68777 b
particular office or be elected and serve on the board.
Satisfactory evidence of the installment sales contract
shall be made available to the association or its agents.
For purposes of this subsection, "installment sales
contract" shall have the same meaning as set forth in
Section 5 of the Installment Sales Contract Act and
Section 1(e) of the Dwelling Unit Installment Contract
Act;
(12) the method by which matters subject to the
approval of unit owners set forth in this Act, or in the
condominium instruments, will be submitted to the unit
owners at special membership meetings called for such
purposes; and
(13) that matters subject to the affirmative vote of
not less than 2/3 of the votes of unit owners at a meeting
duly called for that purpose, shall include, but not be
limited to:
(i) merger or consolidation of the association;
(ii) sale, lease, exchange, or other disposition
(excluding the mortgage or pledge) of all, or
substantially all of the property and assets of the
association; and
(iii) the purchase or sale of land or of units on
behalf of all unit owners.
(c) Election of a president from among the board of
managers, who shall preside over the meetings of the board

SB3715 - 17 - LRB103 38640 JRC 68777 b
of managers and of the unit owners.
(d) Election of a secretary from among the board of
managers, who shall keep the minutes of all meetings of
the board of managers and of the unit owners and who shall,
in general, perform all the duties incident to the office
of secretary.
(e) Election of a treasurer from among the board of
managers, who shall keep the financial records and books
of account.
(f) Maintenance, repair and replacement of the common
elements and payments therefor, including the method of
approving payment vouchers.
(g) 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. The association

SB3715 - 18 - LRB103 38640 JRC 68777 b
shall be the direct obligee of any such fidelity bond. A
management company holding reserve funds of an association
shall at all times maintain a separate account for each
association, provided, however, that for investment
purposes, the Board of Managers of an association may
authorize a management company to maintain the
association's reserve funds in a single interest bearing
account with similar funds of other associations. The
management company shall at all times maintain records
identifying all moneys of each association in such
investment account. 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.
For the purpose of this subsection, a management
company shall be defined as 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 a unit owner, unit owners or association of unit
owners for the purpose of carrying out the duties,
responsibilities, and other obligations necessary for the
day to day operation and management of any property

SB3715 - 19 - LRB103 38640 JRC 68777 b
subject to this Act. For purposes of this subsection, the
term "fiduciary insurance coverage" shall be defined as
both a fidelity bond and directors and officers liability
coverage, the fidelity bond in the full amount of
association funds and association reserves that will be in
the custody of the association, and the directors and
officers liability coverage at a level as shall be
determined to be reasonable by the board of managers, if
not otherwise established by the declaration or by laws.
Until one year after September 21, 1985 (the effective
date of Public Act 84-722), if a condominium association
has reserves plus assessments in excess of $250,000 and
cannot reasonably obtain 100% fidelity bond coverage for
such amount, then it must obtain a fidelity bond coverage
of $250,000.
(h) Method of estimating the amount of the annual
budget, and the manner of assessing and collecting from
the unit owners their respective shares of such estimated
expenses, and of any other expenses lawfully agreed upon.
(i) That upon 10 days notice to the manager or board of
managers and payment of a reasonable fee, any unit owner
shall be furnished a statement of his account setting
forth the amount of any unpaid assessments or other
charges due and owing from such owner.
(j) Designation and removal of personnel necessary for
the maintenance, repair and replacement of the common

SB3715 - 20 - LRB103 38640 JRC 68777 b
elements.
(k) Such restrictions on and requirements respecting
the use and maintenance of the units and the use of the
common elements, not set forth in the declaration, as are
designed to prevent unreasonable interference with the use
of their respective units and of the common elements by
the several unit owners.
(l) Method of adopting and of amending administrative
rules and regulations governing the operation and use of
the common elements.
(m) The percentage of votes required to modify or
amend the bylaws, but each one of the particulars set
forth in this section shall always be embodied in the
bylaws.
(n)(i) The provisions of this Act, the declaration,
bylaws, other condominium instruments, and rules and
regulations that relate to the use of the individual unit
or the common elements 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 August 30, 1984
(the effective date of Public Act 83-1271).
(ii) With regard to any lease entered into subsequent
to July 1, 1990 (the effective date of Public Act 86-991),
the unit owner leasing the unit shall deliver a copy of the
signed lease to the board or if the lease is oral, a
memorandum of the lease, not later than the date of

SB3715 - 21 - LRB103 38640 JRC 68777 b
occupancy or 10 days after the lease is signed, whichever
occurs first. In addition to any other remedies, by filing
an action jointly against the tenant and the unit owner,
an association may seek to enjoin a tenant from occupying
a unit or seek to evict a tenant under the provisions of
Article IX of the Code of Civil Procedure for failure of
the lessor-owner to comply with the leasing requirements
prescribed by this Section or by the declaration, bylaws,
and rules and regulations. The board of managers may
proceed directly against a tenant, at law or in equity, or
under the provisions of Article IX of the Code of Civil
Procedure, for any other breach by tenant of any
covenants, rules, regulations or bylaws.
(o) The association shall have no authority to forbear
the payment of assessments by any unit owner.
(p) That when 30% or fewer of the units, by number,
possess over 50% in the aggregate of the votes in the
association, any percentage vote of members specified
herein or in the condominium instruments shall require the
specified percentage by number of units rather than by
percentage of interest in the common elements allocated to
units that would otherwise be applicable and garage units
or storage units, or both, shall have, in total, no more
votes than their aggregate percentage of ownership in the
common elements; this shall mean that if garage units or
storage units, or both, are to be given a vote, or portion

SB3715 - 22 - LRB103 38640 JRC 68777 b
of a vote, that the association must add the total number
of votes cast of garage units, storage units, or both, and
divide the total by the number of garage units, storage
units, or both, and multiply by the aggregate percentage
of ownership of garage units and storage units to
determine the vote, or portion of a vote, that garage
units or storage units, or both, have. For purposes of
this subsection (p), when making a determination of
whether 30% or fewer of the units, by number, possess over
50% in the aggregate of the votes in the association, a
unit shall not include a garage unit or a storage unit.
(q) That a unit owner may not assign, delegate,
transfer, surrender, or avoid the duties,
responsibilities, and liabilities of a unit owner under
this Act, the condominium instruments, or the rules and
regulations of the Association; and that such an attempted
assignment, delegation, transfer, surrender, or avoidance
shall be deemed void.
The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion
of a condominium instrument which contains provisions contrary
to these provisions shall be void as against public policy and
ineffective. Any such instrument which fails to contain the
provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 102-162, eff. 1-1-22.)

SB3715 - 23 - LRB103 38640 JRC 68777 b
(765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
Sec. 18.4. Board Powers and duties of board of managers.
(A) The board of managers shall exercise for the
association all powers, duties and authority vested in the
association by law or the condominium instruments except for
such powers, duties and authority reserved by law to the
members of the association. The powers and duties of the board
of managers shall include, but shall not be limited to, the
following:
(a) To provide for the operation, care, upkeep,
maintenance, replacement and improvement of the common
elements. Nothing in this subsection (a) shall be deemed
to invalidate any provision in a condominium instrument
placing limits on expenditures for the common elements,
provided, that such limits shall not be applicable to
expenditures for repair, replacement, or restoration of
existing portions of the common elements. The term
"repair, replacement or restoration" means expenditures to
deteriorated or damaged portions of the property related
to the existing decorating, facilities, or structural or
mechanical components, interior or exterior surfaces, or
energy systems and equipment with the functional
equivalent of the original portions of such areas.
Replacement of the common elements may result in an
improvement over the original quality of such elements or

SB3715 - 24 - LRB103 38640 JRC 68777 b
facilities; provided that, unless the improvement is
mandated by law or is an emergency as defined in item (iv)
of subparagraph (8) of paragraph (a) of Section 18, if the
improvement results in a proposed expenditure exceeding 5%
of the annual budget, the board of managers, upon written
petition by unit owners with 20% of the votes of the
association delivered to the board within 21 days of the
board action to approve the expenditure, shall call a
meeting of the unit owners within 30 days of the date of
delivery of the petition to consider the expenditure.
Unless a majority of the total votes of the unit owners are
cast at the meeting to reject the expenditure, it is
ratified.
(b) To prepare, adopt and distribute the annual budget
for the property.
(c) To levy and expend assessments.
(d) To collect assessments from unit owners.
(e) To provide for the employment and dismissal of the
personnel necessary or advisable for the maintenance and
operation of the common elements.
(f) To obtain adequate and appropriate kinds of
insurance.
(g) To own, convey, encumber, lease, and otherwise
deal with units conveyed to or purchased by it.
(h) To adopt and amend rules and regulations covering
the details of the operation and use of the property,

SB3715 - 25 - LRB103 38640 JRC 68777 b
after a meeting of the unit owners called for the specific
purpose of discussing the proposed rules and regulations.
Notice of the meeting shall contain the full text of the
proposed rules and regulations, and the meeting shall
conform to the requirements of Section 18(b) of this Act,
except that no quorum is required at the meeting of the
unit owners unless the declaration, bylaws or other
condominium instrument expressly provides to the contrary.
However, no rule or regulation may impair any rights
guaranteed by the First Amendment to the Constitution of
the United States or Section 4 of Article I of the Illinois
Constitution including, but not limited to, the free
exercise of religion, nor may any rules or regulations
conflict with the provisions of this Act or the
condominium instruments. No rule or regulation shall
prohibit any reasonable accommodation for religious
practices, including the attachment of religiously
mandated objects to the front-door area of a condominium
unit.
(i) To keep detailed, accurate records of the receipts
and expenditures affecting the use and operation of the
property.
(j) To have access to each unit from time to time as
may be necessary for the maintenance, repair or
replacement of any common elements or for making emergency
repairs necessary to prevent damage to the common elements

SB3715 - 26 - LRB103 38640 JRC 68777 b
or to other units.
(k) To pay real property taxes, special assessments,
and any other special taxes or charges of the State of
Illinois or of any political subdivision thereof, or other
lawful taxing or assessing body, which are authorized by
law to be assessed and levied upon the real property of the
condominium.
(l) To impose charges for late payment of a unit
owner's proportionate share of the common expenses, or any
other expenses lawfully agreed upon, and after notice and
an opportunity to be heard, to levy reasonable fines for
violation of the declaration, by-laws, and rules and
regulations of the association.
(m) By a majority vote of the entire board of
managers, to assign the right of the association to future
income from common expenses or other sources, and to
mortgage or pledge substantially all of the remaining
assets of the association.
(n) To record the dedication of a portion of the
common elements to a public body for use as, or in
connection with, a street or utility where authorized by
the unit owners under the provisions of Section 14.2.
(o) To record the granting of an easement for the
laying of cable television or high speed Internet cable
where authorized by the unit owners under the provisions
of Section 14.3; to obtain, if available and determined by

SB3715 - 27 - LRB103 38640 JRC 68777 b
the board to be in the best interests of the association,
cable television or bulk high speed Internet service for
all of the units of the condominium on a bulk identical
service and equal cost per unit basis; and to assess and
recover the expense as a common expense and, if so
determined by the board, to assess each and every unit on
the same equal cost per unit basis.
(p) To seek relief on behalf of all unit owners when
authorized pursuant to subsection (c) of Section 10 from
or in connection with the assessment or levying of real
property taxes, special assessments, and any other special
taxes or charges of the State of Illinois or of any
political subdivision thereof or of any lawful taxing or
assessing body.
(q) To reasonably accommodate the needs of a unit
owner who is a person with a disability as required by the
federal Civil Rights Act of 1968, the Human Rights Act and
any applicable local ordinances in the exercise of its
powers with respect to the use of common elements or
approval of modifications in an individual unit.
(r) To accept service of a notice of claim for
purposes of the Mechanics Lien Act on behalf of each
respective member of the Unit Owners' Association with
respect to improvements performed pursuant to any contract
entered into by the Board of Managers or any contract
entered into prior to the recording of the condominium

SB3715 - 28 - LRB103 38640 JRC 68777 b
declaration pursuant to this Act, for a property
containing more than 8 units, and to distribute the notice
to the unit owners within 7 days of the acceptance of the
service by the Board of Managers. The service shall be
effective as if each individual unit owner had been served
individually with notice.
(s) To adopt and amend rules and regulations (l)
authorizing electronic delivery of notices and other
communications required or contemplated by this Act to
each unit owner who provides the association with written
authorization for electronic delivery and an electronic
address to which such communications are to be
electronically transmitted; and (2) authorizing each unit
owner to designate an electronic address or a U.S. Postal
Service address, or both, as the unit owner's address on
any list of members or unit owners which an association is
required to provide upon request pursuant to any provision
of this Act or any condominium instrument.
In the performance of their duties, the officers and
members of the board, whether appointed by the developer or
elected by the unit owners, shall exercise the care required
of a fiduciary of the unit owners.
The collection of assessments from unit owners by an
association, board of managers or their duly authorized agents
shall not be considered acts constituting a collection agency
for purposes of the Collection Agency Act.

SB3715 - 29 - LRB103 38640 JRC 68777 b
(B) A member of the board charged by information or
indictment with any of the following crimes shall be removed
from office:
(a) Forgery of a ballot envelope or voting certificate
used in a homeowners' association election;
(b) Theft or embezzlement involving the association's
funds or property;
(c) Destruction of or the refusal to allow inspection
or copying of an official record of a homeowners'
association which is accessible to parcel owners within
the time periods required by general law, in furtherance
of any crime;
(d) Any fraudulent voting activity relating to
association elections including:
(i) Willfully and falsely swearing to or affirming
an oath or affirmation, or willfully procuring another
person to falsely swear to or affirm an oath or
affirmation, in connection with or arising out of
voting activities.
(ii) Perpetrating or attempting to perpetrate, or
aiding in the perpetration of, fraud in connection
with a vote cast, to be cast, or attempted to be cast.
(iii) Preventing a member from voting or
preventing a member from voting as he or she intended
by fraudulently changing or attempting to change a
ballot, ballot envelope, vote, or voting certificate

SB3715 - 30 - LRB103 38640 JRC 68777 b
of the member.
(iv) Menacing, threatening, or using bribery or
any other corruption to attempt, directly or
indirectly, to influence, deceive, or deter a member
when the member is voting.
(v) Giving or promising, directly or indirectly,
anything of value to another member with the intent to
buy the vote of that member or another member or to
corruptly influence that member or another member in
casting his or her vote. This subsection does not
apply to any food served which is to be consumed at an
election rally or a meeting or to any item of nominal
value which is used as an election advertisement,
including a campaign message designed to be worn by a
member.
(vi) Using or threatening to use, directly or
indirectly, force, violence, or intimidation or any
tactic of coercion or intimidation to induce or compel
a member to vote or refrain from voting in an election
or on a particular ballot measure.
The board shall fill vacancies in accordance with Section
18(a)(13). If such criminal charge is pending against the
officer or director, he or she may not be appointed or elected
to a position on the board of directors of any association and
may not have access to the official records of any
association, except by court order. If charges are resolved

SB3715 - 31 - LRB103 38640 JRC 68777 b
without a finding of guilt or without acceptance of a plea of
guilty or nolo contendere, the member of the board shall be
reinstated for any remainder of their term.
(C) Members of the board who are appointed by the
developer must disclose to the association their relationship
to the developer each calendar year in which they serve on the
board. Members appointed by the developer must disclose any
other activity that may reasonably be construed to be a
conflict of interest.
(D) Members of the board must disclose any activity that
may be reasonably construed to be a conflict of interest at
least 14 days before voting on an issue or entering into a
contract that is the subject of the conflict. A rebuttable
presumption of a conflict of interest exists if any of the
following acts occur without prior disclosure to the
association:
(i) A member of the board or their relative enters
into a contract for goods or services with the
association.
(ii) A member of the board or their relative holds an
interest in a corporation, limited liability company,
partnership, limited liability partnership, or other
business entity that conducts business with the
association or proposes to enter into a contract or other
transaction with the associations.
The provisions of this Section are applicable to all

SB3715 - 32 - LRB103 38640 JRC 68777 b
condominium instruments recorded under this Act. Any portion
of a condominium instrument which contains provisions contrary
to these provisions shall be void as against public policy and
ineffective. Any such instrument that fails to contain the
provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
100-292, eff. 1-1-18.)
(765 ILCS 605/19) (from Ch. 30, par. 319)
Sec. 19. Records of the association; availability for
examination.
(a) The board of managers of every association shall keep
and maintain the following records, or true and complete
copies of these records, at the association's principal
office:
(1) the association's declaration, bylaws, and plats
of survey, and all amendments of these;
(2) the rules and regulations of the association, if
any;
(3) if the association is incorporated as a
corporation, the articles of incorporation of the
association and all amendments to the articles of
incorporation;
(4) minutes of all meetings of the association and its
board of managers for the immediately preceding 7 years;

SB3715 - 33 - LRB103 38640 JRC 68777 b
(5) all current policies of insurance of the
association;
(6) all contracts, leases, and other agreements then
in effect to which the association is a party or under
which the association or the unit owners have obligations
or liabilities;
(7) a current listing of the names, addresses, email
addresses, telephone numbers, and weighted vote of all
members entitled to vote;
(8) ballots and proxies related to ballots for all
matters voted on by the members of the association during
the immediately preceding 12 months, including, but not
limited to, the election of members of the board of
managers;
(9) the books and records for the association's
current and 10 immediately preceding fiscal years,
including, but not limited to, itemized and detailed
records of all receipts, expenditures, and accounts; and
(10) any reserve study.
(b) Any member of an association shall have the right to
inspect, examine, and make copies of the records described in
subdivisions (1), (2), (3), (4), (5), (6), (9), and (10) of
subsection (a) of this Section, in person or by agent, at any
reasonable time or times, at the association's principal
office. In order to exercise this right, a member must submit a
written request to the association's board of managers or its

SB3715 - 34 - LRB103 38640 JRC 68777 b
authorized agent, stating with particularity the records
sought to be examined. Failure of an association's board of
managers to make available all records so requested within 10
business days of receipt of the member's written request shall
be deemed a denial.
Any member who prevails in an enforcement action to compel
examination of records described in subdivisions (1), (2),
(3), (4), (5), (6), (9), and (10) of subsection (a) of this
Section shall be entitled to recover reasonable attorney's
fees and costs from the association.
(c) (Blank).
(d) (Blank).
(d-5) As used in this Section, "commercial purpose" means
the use of any part of a record or records described in
subdivisions (7) and (8) of subsection (a) of this Section, or
information derived from such records, in any form for sale,
resale, or solicitation or advertisement for sales or
services.
(e) Except as otherwise provided in subsection (g) of this
Section, any member of an association shall have the right to
inspect, examine, and make copies of the records described in
subdivisions (7) and (8) of subsection (a) of this Section, in
person or by agent, at any reasonable time or times but only
for a purpose that relates to the association, at the
association's principal office. In order to exercise this
right, a member must submit a written request, to the

SB3715 - 35 - LRB103 38640 JRC 68777 b
association's board of managers or its authorized agent,
stating with particularity the records sought to be examined.
As a condition for exercising this right, the board of
managers or authorized agent of the association may require
the member to certify in writing that the information
contained in the records obtained by the member will not be
used by the member for any commercial purpose or for any
purpose that does not relate to the association. The board of
managers of the association may impose a fine in accordance
with item (l) of Section 18.4 upon any person who makes a false
certification. Subject to the provisions of subsection (g) of
this Section, failure of an association's board of managers to
make available all records so requested within 10 business
days of receipt of the member's written request shall be
deemed a denial; provided, however, that the board of managers
of an association that has adopted a secret ballot election
process as provided in Section 18 of this Act shall not be
deemed to have denied a member's request for records described
in subdivision (8) of subsection (a) of this Section if voting
ballots, without identifying unit numbers, are made available
to the requesting member within 10 business days of receipt of
the member's written request.
Any member who prevails in an enforcement action to compel
examination of records described in subdivision (7) or (8) of
subsection (a) of this Section shall be entitled to recover
reasonable attorney's fees and costs from the association only

SB3715 - 36 - LRB103 38640 JRC 68777 b
if the court finds that the board of directors acted in bad
faith in denying the member's request.
(f) The actual cost to the association of retrieving and
making requested records available for inspection and
examination under this Section may be charged by the
association to the requesting member. If a member requests
copies of records requested under this Section, the actual
costs to the association of reproducing the records may also
be charged by the association to the requesting member.
(g) Notwithstanding the provisions of subsection (e) of
this Section, unless otherwise directed by court order, an
association need not make the following records available for
inspection, examination, or copying by its members:
(1) documents relating to appointment, employment,
discipline, or dismissal of association employees;
(2) documents relating to actions pending against or
on behalf of the association or its board of managers in a
court or administrative tribunal;
(3) documents relating to actions threatened against,
or likely to be asserted on behalf of, the association or
its board of managers in a court or administrative
tribunal;
(4) documents relating to common expenses or other
charges owed by a member other than the requesting member;
and
(5) documents provided to an association in connection

SB3715 - 37 - LRB103 38640 JRC 68777 b
with the lease, sale, or other transfer of a unit by a
member other than the requesting member.
(h) The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion
of a condominium instrument that contains provisions contrary
to these provisions shall be void as against public policy and
ineffective. Any condominium instrument that fails to contain
the provisions required by this Section shall be deemed to
incorporate the provisions by operation of law.
(i) Failure to provide the requested documents within the
prescribed timeframe shall result in a fine of not more than
$2,500.
(Source: P.A. 102-921, eff. 5-27-22.)
(765 ILCS 605/32)
Sec. 32. Alternate dispute resolution; mediation;
arbitration.
(a) The declaration or bylaws of a condominium association
shall may require mediation or arbitration of disputes in
which the matter in controversy has either no specific
monetary value or a value of $10,000 or less, other than the
levying and collection of assessments, or that arises out of
violations of the declaration, bylaws, or rules and
regulations of the condominium association. The declaration or
bylaws of a condominium association may require mediation or
arbitration of disputes for all other disputes. A dispute not

SB3715 - 38 - LRB103 38640 JRC 68777 b
required to be mediated or arbitrated by an association
pursuant to its powers under this Section, that is submitted
to mediation or arbitration by the agreement of the
disputants, is also subject to this Section.
(b) The Illinois Uniform Arbitration Act shall govern all
arbitrations proceeding under this Section.
(b-5) The Uniform Mediation Act shall govern all
mediations proceeding under this Section.
(c) The association may require the disputants to bear the
costs of mediation or arbitration.
(Source: P.A. 93-399, eff. 1-1-04.)
SB3715 - 39 - LRB103 38640 JRC 68777 b
INDEX
Statutes amended in order of appearance