Rep. Jaime M. Andrade, Jr.

Filed: 3/6/2019

 

 


 

 


 
10100HB3416ham001LRB101 10830 LNS 56700 a

1
AMENDMENT TO HOUSE BILL 3416

2    AMENDMENT NO. ______. Amend House Bill 3416 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Condominium Property Act is amended by
5changing Section 18.7 as follows:
 
6    (765 ILCS 605/18.7)
7    Sec. 18.7. Standards for community association managers.
8    (a) "Community association" means an association in which
9membership is a condition of ownership or shareholder interest
10of a unit in a condominium, cooperative, townhouse, villa, or
11other residential unit that is part of a residential
12development plan as a master association or common interest
13community and that is authorized to impose an assessment and
14other costs that may become a lien on the unit or lot.
15    (b) "Community association manager" means an individual
16who administers for compensation the coordination of

 

 

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1financial, administrative, maintenance, or other duties called
2for in the management contract, including individuals who are
3direct employees of a community association. A manager does not
4include support staff, such as bookkeepers, administrative
5assistants, secretaries, property inspectors, or customer
6service representatives.
7    (c) Requirements. To perform services as a community
8association manager, an individual must meet these
9requirements:
10        (1) shall have attained the age of 21 and be a citizen
11    or legal permanent resident of the United States;
12        (2) shall not have been convicted of forgery,
13    embezzlement, obtaining money under false pretenses,
14    larceny, extortion, conspiracy to defraud or other similar
15    offense or offenses;
16        (3) shall have a working knowledge of the fundamentals
17    of community association management, including the
18    Condominium Property Act, the Illinois Not-for-Profit
19    Corporation Act, and any other laws pertaining to community
20    association management; and
21        (4) shall not have engaged in the following activities:
22    failure to cooperate with any law enforcement agency in the
23    investigation of a complaint; or failure to produce any
24    document, book, or record in the possession or control of
25    the community association manager after a request for
26    production of that document, book, or record in the course

 

 

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1    of an investigation of a complaint.
2    (d) Access to community association funds. For community
3associations of 6 or more units, apartments, townhomes, villas
4or other residential units, a community association manager or
5the firm with whom the manager is employed shall not solely and
6exclusively have access to and disburse funds of a community
7association unless:
8        (1) There is a fidelity bond in place.
9        (2) The fidelity bond is in an amount not less than all
10    monies of that association in the custody or control of the
11    community association manager.
12        (3) The fidelity bond covers the community association
13    manager and all partners, officers, and employees of the
14    firm with whom the community association manager is
15    employed during the term of the bond, as well as the
16    community association officers, directors, and employees
17    of the community association who control or disburse funds.
18        (4) The insurance company issuing the bond may not
19    cancel or refuse to renew the bond without giving not less
20    than 10 days' prior written notice to the community
21    association.
22        (5) The community association shall secure and pay for
23    the bond.
24    (e) A community association manager who provides community
25association management services for more than one community
26association shall maintain separate, segregated accounts for

 

 

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1each community association. The funds shall not, in any event,
2be commingled with funds of the community association manager,
3the firm of the community association manager, or any other
4community association. The maintenance of these accounts shall
5be custodial, and the accounts shall be in the name of the
6respective community association.
7    (f) Exempt persons. Except as otherwise provided, this
8Section does not apply to any person acting as a receiver,
9trustee in bankruptcy, administrator, executor, or guardian
10acting under a court order or under the authority of a will or
11of a trust instrument.
12    (g) Right of Action.
13        (1) Nothing in this amendatory Act of the 95th General
14    Assembly shall create a cause of action by a unit owner,
15    shareholder, or community association member against a
16    community association manager or the firm of a community
17    association manager.
18        (2) This amendatory Act of the 95th General Assembly
19    shall not impair any right of action by a unit owner or
20    shareholder against a community association board of
21    directors under existing law.
22    (h) A community association manager who provides community
23association management services shall not enter into any
24agreement for payment or commission with any person,
25corporation, party, partnership, or other entity that provides
26goods or services to the association without first giving prior

 

 

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1written disclosure to the board of managers.
2(Source: P.A. 95-318, eff. 1-1-08.)".