96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0821

 

Introduced 2/9/2009, by Rep. Sandra M. Pihos

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 605/18   from Ch. 30, par. 318
765 ILCS 605/18.4   from Ch. 30, par. 318.4
805 ILCS 105/103.35 new

    Amends the Condominium Property Act. Provides that if a condominium association's bylaws permit the leasing of an owner's condominium unit and the bylaws are changed to prohibit the leasing of a unit and a unit owner, incorporated under 26 USC 501(c)(3), is leasing the unit at the time that the bylaw goes into effect, then the unit owner may continue to rent the unit until the unit owner voluntarily sells the unit and no fine, fee, dues, or penalty shall be assessed against the unit owner for leasing its unit. Amends the General Not For Profit Corporation Act of 1986. Provides that if a common interest community or homeowners' association that currently permits leasing amends its governing documents to prohibit leasing, that prohibition may not affect a unit owner, incorporated under 26 USC 501(c)(3), then leasing the unit from continuing to rent the unit until the unit owner voluntarily sells the unit and no fine, fee, dues, or penalty shall be assessed against the unit owner for leasing its unit.


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A BILL FOR

 

HB0821 LRB096 08027 AJO 18132 b

1     AN ACT concerning civil law.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Condominium Property Act is amended by
5 changing Sections 18 and 18.4 as follows:
 
6     (765 ILCS 605/18)  (from Ch. 30, par. 318)
7     Sec. 18. Contents of bylaws. The bylaws shall provide for
8 at least the following:
9     (a) (1) The election from among the unit owners of a board
10     of managers, the number of persons constituting such board,
11     and that the terms of at least one-third of the members of
12     the board shall expire annually and that all members of the
13     board shall be elected at large. If there are multiple
14     owners of a single unit, only one of the multiple owners
15     shall be eligible to serve as a member of the board at any
16     one time.
17         (2) the powers and duties of the board;
18         (3) the compensation, if any, of the members of the
19     board;
20         (4) the method of removal from office of members of the
21     board;
22         (5) that the board may engage the services of a manager
23     or managing agent;

 

 

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1         (6) that each unit owner shall receive, at least 30
2     days prior to the adoption thereof by the board of
3     managers, a copy of the proposed annual budget together
4     with an indication of which portions are intended for
5     reserves, capital expenditures or repairs or payment of
6     real estate taxes;
7         (7) that the board of managers shall annually supply to
8     all unit owners an itemized accounting of the common
9     expenses for the preceding year actually incurred or paid,
10     together with an indication of which portions were for
11     reserves, capital expenditures or repairs or payment of
12     real estate taxes and with a tabulation of the amounts
13     collected pursuant to the budget or assessment, and showing
14     the net excess or deficit of income over expenditures plus
15     reserves;
16         (8) (i) that each unit owner shall receive notice, in
17     the same manner as is provided in this Act for membership
18     meetings, of any meeting of the board of managers
19     concerning the adoption of the proposed annual budget and
20     regular assessments pursuant thereto or to adopt a separate
21     (special) assessment, (ii) that except as provided in
22     subsection (iv) below, if an adopted budget or any separate
23     assessment adopted by the board would result in the sum of
24     all regular and separate assessments payable in the current
25     fiscal year exceeding 115% of the sum of all regular and
26     separate assessments payable during the preceding fiscal

 

 

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1     year, the board of managers, upon written petition by unit
2     owners with 20 percent of the votes of the association
3     delivered to the board within 14 days of the board action,
4     shall call a meeting of the unit owners within 30 days of
5     the date of delivery of the petition to consider the budget
6     or separate assessment; unless a majority of the total
7     votes of the unit owners are cast at the meeting to reject
8     the budget or separate assessment, it is ratified, (iii)
9     that any common expense not set forth in the budget or any
10     increase in assessments over the amount adopted in the
11     budget shall be separately assessed against all unit
12     owners, (iv) that separate assessments for expenditures
13     relating to emergencies or mandated by law may be adopted
14     by the board of managers without being subject to unit
15     owner approval or the provisions of item (ii) above or item
16     (v) below. As used herein, "emergency" means an immediate
17     danger to the structural integrity of the common elements
18     or to the life, health, safety or property of the unit
19     owners, (v) that assessments for additions and alterations
20     to the common elements or to association-owned property not
21     included in the adopted annual budget, shall be separately
22     assessed and are subject to approval of two-thirds of the
23     total votes of all unit owners, (vi) that the board of
24     managers may adopt separate assessments payable over more
25     than one fiscal year. With respect to multi-year
26     assessments not governed by items (iv) and (v), the entire

 

 

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1     amount of the multi-year assessment shall be deemed
2     considered and authorized in the first fiscal year in which
3     the assessment is approved;
4         (9) that meetings of the board of managers shall be
5     open to any unit owner, except for the portion of any
6     meeting held (i) to discuss litigation when an action
7     against or on behalf of the particular association has been
8     filed and is pending in a court or administrative tribunal,
9     or when the board of managers finds that such an action is
10     probable or imminent, (ii) to consider information
11     regarding appointment, employment or dismissal of an
12     employee, or (iii) to discuss violations of rules and
13     regulations of the association or a unit owner's unpaid
14     share of common expenses; that any vote on these matters
15     shall be taken at a meeting or portion thereof open to any
16     unit owner; that any unit owner may record the proceedings
17     at meetings or portions thereof required to be open by this
18     Act by tape, film or other means; that the board may
19     prescribe reasonable rules and regulations to govern the
20     right to make such recordings, that notice of such meetings
21     shall be mailed or delivered at least 48 hours prior
22     thereto, unless a written waiver of such notice is signed
23     by the person or persons entitled to such notice pursuant
24     to the declaration, bylaws, other condominium instrument,
25     or provision of law other than this subsection before the
26     meeting is convened, and that copies of notices of meetings

 

 

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1     of the board of managers shall be posted in entranceways,
2     elevators, or other conspicuous places in the condominium
3     at least 48 hours prior to the meeting of the board of
4     managers except where there is no common entranceway for 7
5     or more units, the board of managers may designate one or
6     more locations in the proximity of these units where the
7     notices of meetings shall be posted;
8         (10) that the board shall meet at least 4 times
9     annually;
10         (11) that no member of the board or officer shall be
11     elected for a term of more than 2 years, but that officers
12     and board members may succeed themselves;
13         (12) the designation of an officer to mail and receive
14     all notices and execute amendments to condominium
15     instruments as provided for in this Act and in the
16     condominium instruments;
17         (13) the method of filling vacancies on the board which
18     shall include authority for the remaining members of the
19     board to fill the vacancy by two-thirds vote until the next
20     annual meeting of unit owners or for a period terminating
21     no later than 30 days following the filing of a petition
22     signed by unit owners holding 20% of the votes of the
23     association requesting a meeting of the unit owners to fill
24     the vacancy for the balance of the term, and that a meeting
25     of the unit owners shall be called for purposes of filling
26     a vacancy on the board no later than 30 days following the

 

 

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1     filing of a petition signed by unit owners holding 20% of
2     the votes of the association requesting such a meeting, and
3     the method of filling vacancies among the officers that
4     shall include the authority for the members of the board to
5     fill the vacancy for the unexpired portion of the term;
6         (14) what percentage of the board of managers, if other
7     than a majority, shall constitute a quorum;
8         (15) provisions concerning notice of board meetings to
9     members of the board;
10         (16) the board of managers may not enter into a
11     contract with a current board member or with a corporation
12     or partnership in which a board member or a member of the
13     board member's immediate family has 25% or more interest,
14     unless notice of intent to enter the contract is given to
15     unit owners within 20 days after a decision is made to
16     enter into the contract and the unit owners are afforded an
17     opportunity by filing a petition, signed by 20% of the unit
18     owners, for an election to approve or disapprove the
19     contract; such petition shall be filed within 20 days after
20     such notice and such election shall be held within 30 days
21     after filing the petition; for purposes of this subsection,
22     a board member's immediate family means the board member's
23     spouse, parents, and children;
24         (17) that the board of managers may disseminate to unit
25     owners biographical and background information about
26     candidates for election to the board if (i) reasonable

 

 

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1     efforts to identify all candidates are made and all
2     candidates are given an opportunity to include
3     biographical and background information in the information
4     to be disseminated; and (ii) the board does not express a
5     preference in favor of any candidate;
6         (18) any proxy distributed for board elections by the
7     board of managers gives unit owners the opportunity to
8     designate any person as the proxy holder, and gives the
9     unit owner the opportunity to express a preference for any
10     of the known candidates for the board or to write in a
11     name;
12         (19) that special meetings of the board of managers can
13     be called by the president or 25% of the members of the
14     board; and
15         (20) that the board of managers may establish and
16     maintain a system of master metering of public utility
17     services and collect payments in connection therewith,
18     subject to the requirements of the Tenant Utility Payment
19     Disclosure Act.
20     (b) (1) What percentage of the unit owners, if other than
21     20%, shall constitute a quorum provided that, for
22     condominiums with 20 or more units, the percentage of unit
23     owners constituting a quorum shall be 20% unless the unit
24     owners holding a majority of the percentage interest in the
25     association provide for a higher percentage;
26         (2) that the association shall have one class of

 

 

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1     membership;
2         (3) that the members shall hold an annual meeting, one
3     of the purposes of which shall be to elect members of the
4     board of managers;
5         (4) the method of calling meetings of the unit owners;
6         (5) that special meetings of the members can be called
7     by the president, board of managers, or by 20% of unit
8     owners;
9         (6) that written notice of any membership meeting shall
10     be mailed or delivered giving members no less than 10 and
11     no more than 30 days notice of the time, place and purpose
12     of such meeting;
13         (7) that voting shall be on a percentage basis, and
14     that the percentage vote to which each unit is entitled is
15     the percentage interest of the undivided ownership of the
16     common elements appurtenant thereto, provided that the
17     bylaws may provide for approval by unit owners in
18     connection with matters where the requisite approval on a
19     percentage basis is not specified in this Act, on the basis
20     of one vote per unit;
21         (8) that, where there is more than one owner of a unit,
22     if only one of the multiple owners is present at a meeting
23     of the association, he is entitled to cast all the votes
24     allocated to that unit, if more than one of the multiple
25     owners are present, the votes allocated to that unit may be
26     cast only in accordance with the agreement of a majority in

 

 

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1     interest of the multiple owners, unless the declaration
2     expressly provides otherwise, that there is majority
3     agreement if any one of the multiple owners cast the votes
4     allocated to that unit without protest being made promptly
5     to the person presiding over the meeting by any of the
6     other owners of the unit;
7         (9)(A) that unless the Articles of Incorporation or the
8     bylaws otherwise provide, and except as provided in
9     subparagraph (B) of this paragraph (9) in connection with
10     board elections, a unit owner may vote by proxy executed in
11     writing by the unit owner or by his duly authorized
12     attorney in fact; that the proxy must bear the date of
13     execution and, unless the condominium instruments or the
14     written proxy itself provide otherwise, is invalid after 11
15     months from the date of its execution;
16         (B) that if a rule adopted at least 120 days before a
17     board election or the declaration or bylaws provide for
18     balloting as set forth in this subsection, unit owners may
19     not vote by proxy in board elections, but may vote only (i)
20     by submitting an association-issued ballot in person at the
21     election meeting or (ii) by submitting an
22     association-issued ballot to the association or its
23     designated agent by mail or other means of delivery
24     specified in the declaration, bylaws, or rule; that the
25     ballots shall be mailed or otherwise distributed to unit
26     owners not less than 10 and not more than 30 days before

 

 

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1     the election meeting, and the board shall give unit owners
2     not less than 21 days' prior written notice of the deadline
3     for inclusion of a candidate's name on the ballots; that
4     the deadline shall be no more than 7 days before the
5     ballots are mailed or otherwise distributed to unit owners;
6     that every such ballot must include the names of all
7     candidates who have given the board or its authorized agent
8     timely written notice of their candidacy and must give the
9     person casting the ballot the opportunity to cast votes for
10     candidates whose names do not appear on the ballot; that a
11     ballot received by the association or its designated agent
12     after the close of voting shall not be counted; that a unit
13     owner who submits a ballot by mail or other means of
14     delivery specified in the declaration, bylaws, or rule may
15     request and cast a ballot in person at the election
16     meeting, and thereby void any ballot previously submitted
17     by that unit owner;
18         (C) that if a written petition by unit owners with at
19     least 20% of the votes of the association is delivered to
20     the board within 14 days after the board's approval of a
21     rule adopted pursuant to subparagraph (B) of this paragraph
22     (9), the board shall call a meeting of the unit owners
23     within 30 days after the date of delivery of the petition;
24     that unless a majority of the total votes of the unit
25     owners are cast at the meeting to reject the rule, the rule
26     is ratified;

 

 

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1         (10) that the association may, upon adoption of the
2     appropriate rules by the board of managers, conduct
3     elections by secret ballot whereby the voting ballot is
4     marked only with the percentage interest for the unit and
5     the vote itself, provided that the board further adopt
6     rules to verify the status of the unit owner issuing a
7     proxy or casting a ballot; and further, that a candidate
8     for election to the board of managers or such candidate's
9     representative shall have the right to be present at the
10     counting of ballots at such election;
11         (11) that in the event of a resale of a condominium
12     unit the purchaser of a unit from a seller other than the
13     developer pursuant to an installment contract for purchase
14     shall during such times as he or she resides in the unit be
15     counted toward a quorum for purposes of election of members
16     of the board of managers at any meeting of the unit owners
17     called for purposes of electing members of the board, shall
18     have the right to vote for the election of members of the
19     board of managers and to be elected to and serve on the
20     board of managers unless the seller expressly retains in
21     writing any or all of such rights. In no event may the
22     seller and purchaser both be counted toward a quorum, be
23     permitted to vote for a particular office or be elected and
24     serve on the board. Satisfactory evidence of the
25     installment contact shall be made available to the
26     association or its agents. For purposes of this subsection,

 

 

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1     "installment contact" shall have the same meaning as set
2     forth in Section 1 (e) of "An Act relating to installment
3     contracts to sell dwelling structures", approved August
4     11, 1967, as amended;
5         (12) the method by which matters subject to the
6     approval of unit owners set forth in this Act, or in the
7     condominium instruments, will be submitted to the unit
8     owners at special membership meetings called for such
9     purposes; and
10         (13) that matters subject to the affirmative vote of
11     not less than 2/3 of the votes of unit owners at a meeting
12     duly called for that purpose, shall include, but not be
13     limited to:
14             (i) merger or consolidation of the association;
15             (ii) sale, lease, exchange, or other disposition
16         (excluding the mortgage or pledge) of all, or
17         substantially all of the property and assets of the
18         association; and
19             (iii) the purchase or sale of land or of units on
20         behalf of all unit owners.
21     (c) Election of a president from among the board of
22 managers, who shall preside over the meetings of the board of
23 managers and of the unit owners.
24     (d) Election of a secretary from among the board of
25 managers, who shall keep the minutes of all meetings of the
26 board of managers and of the unit owners and who shall, in

 

 

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1 general, perform all the duties incident to the office of
2 secretary.
3     (e) Election of a treasurer from among the board of
4 managers, who shall keep the financial records and books of
5 account.
6     (f) Maintenance, repair and replacement of the common
7 elements and payments therefor, including the method of
8 approving payment vouchers.
9     (g) An association with 30 or more units shall obtain and
10 maintain fidelity insurance covering persons who control or
11 disburse funds of the association for the maximum amount of
12 coverage available to protect funds in the custody or control
13 of the association plus the association reserve fund. All
14 management companies which are responsible for the funds held
15 or administered by the association shall maintain and furnish
16 to the association a fidelity bond for the maximum amount of
17 coverage available to protect funds in the custody of the
18 management company at any time. The association shall bear the
19 cost of the fidelity insurance and fidelity bond, unless
20 otherwise provided by contract between the association and a
21 management company. The association shall be the direct obligee
22 of any such fidelity bond. A management company holding reserve
23 funds of an association shall at all times maintain a separate
24 account for each association, provided, however, that for
25 investment purposes, the Board of Managers of an association
26 may authorize a management company to maintain the

 

 

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1 association's reserve funds in a single interest bearing
2 account with similar funds of other associations. The
3 management company shall at all times maintain records
4 identifying all moneys of each association in such investment
5 account. The management company may hold all operating funds of
6 associations which it manages in a single operating account but
7 shall at all times maintain records identifying all moneys of
8 each association in such operating account. Such operating and
9 reserve funds held by the management company for the
10 association shall not be subject to attachment by any creditor
11 of the management company.
12     For the purpose of this subsection a management company
13 shall be defined as a person, partnership, corporation, or
14 other legal entity entitled to transact business on behalf of
15 others, acting on behalf of or as an agent for a unit owner,
16 unit owners or association of unit owners for the purpose of
17 carrying out the duties, responsibilities, and other
18 obligations necessary for the day to day operation and
19 management of any property subject to this Act. For purposes of
20 this subsection, the term "fiduciary insurance coverage" shall
21 be defined as both a fidelity bond and directors and officers
22 liability coverage, the fidelity bond in the full amount of
23 association funds and association reserves that will be in the
24 custody of the association, and the directors and officers
25 liability coverage at a level as shall be determined to be
26 reasonable by the board of managers, if not otherwise

 

 

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1 established by the declaration or by laws.
2     Until one year after the effective date of this amendatory
3 Act of 1985, if a condominium association has reserves plus
4 assessments in excess of $250,000 and cannot reasonably obtain
5 100% fidelity bond coverage for such amount, then it must
6 obtain a fidelity bond coverage of $250,000.
7     (h) Method of estimating the amount of the annual budget,
8 and the manner of assessing and collecting from the unit owners
9 their respective shares of such estimated expenses, and of any
10 other expenses lawfully agreed upon.
11     (i) That upon 10 days notice to the manager or board of
12 managers and payment of a reasonable fee, any unit owner shall
13 be furnished a statement of his account setting forth the
14 amount of any unpaid assessments or other charges due and owing
15 from such owner.
16     (j) Designation and removal of personnel necessary for the
17 maintenance, repair and replacement of the common elements.
18     (k) Such restrictions on and requirements respecting the
19 use and maintenance of the units and the use of the common
20 elements, not set forth in the declaration, as are designed to
21 prevent unreasonable interference with the use of their
22 respective units and of the common elements by the several unit
23 owners.
24     (l) Method of adopting and of amending administrative rules
25 and regulations governing the operation and use of the common
26 elements.

 

 

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1     (m) The percentage of votes required to modify or amend the
2 bylaws, but each one of the particulars set forth in this
3 section shall always be embodied in the bylaws.
4     (n) (i) The provisions of this Act, the declaration,
5 bylaws, other condominium instruments, and rules and
6 regulations that relate to the use of the individual unit or
7 the common elements shall be applicable to any person leasing a
8 unit and shall be deemed to be incorporated in any lease
9 executed or renewed on or after the effective date of this
10 amendatory Act of 1984. (ii) With regard to any lease entered
11 into subsequent to the effective date of this amendatory Act of
12 1989, the unit owner leasing the unit shall deliver a copy of
13 the signed lease to the board or if the lease is oral, a
14 memorandum of the lease, not later than the date of occupancy
15 or 10 days after the lease is signed, whichever occurs first.
16 In addition to any other remedies, by filing an action jointly
17 against the tenant and the unit owner, an association may seek
18 to enjoin a tenant from occupying a unit or seek to evict a
19 tenant under the provisions of Article IX of the Code of Civil
20 Procedure for failure of the lessor-owner to comply with the
21 leasing requirements prescribed by this Section or by the
22 declaration, bylaws, and rules and regulations. However, if an
23 association that currently permits leasing amends its
24 declaration, bylaws, or rules and regulations to prohibit
25 leasing, nothing in this Act or the declarations, bylaws, rules
26 and regulations of an association shall prohibit a unit owner,

 

 

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1 incorporated under 26 USC 501(c)(3) which is leasing a unit at
2 the time of the prohibition from continuing to do so, until
3 such time that the unit owner voluntarily sells the unit; and
4 no special fine, fee, dues, or penalty shall be assessed
5 against the unit owner for leasing its unit. The board of
6 managers may proceed directly against a tenant, at law or in
7 equity, or under the provisions of Article IX of the Code of
8 Civil Procedure, for any other breach by tenant of any
9 covenants, rules, regulations or bylaws.
10     (o) The association shall have no authority to forbear the
11 payment of assessments by any unit owner.
12     (p) That when 30% or fewer of the units, by number, possess
13 over 50% in the aggregate of the votes in the association, any
14 percentage vote of members specified herein or in the
15 condominium instruments shall require the specified percentage
16 by number of units rather than by percentage of interest in the
17 common elements allocated to units that would otherwise be
18 applicable. For purposes of this subsection (p), when making a
19 determination of whether 30% or fewer of the units, by number,
20 possess over 50% in the aggregate of the votes in the
21 association, a unit shall not include a garage unit or a
22 storage unit.
23     (q) That a unit owner may not assign, delegate, transfer,
24 surrender, or avoid the duties, responsibilities, and
25 liabilities of a unit owner under this Act, the condominium
26 instruments, or the rules and regulations of the Association;

 

 

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1 and that such an attempted assignment, delegation, transfer,
2 surrender, or avoidance shall be deemed void.
3     The provisions of this Section are applicable to all
4 condominium instruments recorded under this Act. Any portion of
5 a condominium instrument which contains provisions contrary to
6 these provisions shall be void as against public policy and
7 ineffective. Any such instrument which fails to contain the
8 provisions required by this Section shall be deemed to
9 incorporate such provisions by operation of law.
10 (Source: P.A. 95-624, eff. 6-1-08.)
 
11     (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
12     Sec. 18.4. Powers and Duties of Board of Managers. The
13 board of managers shall exercise for the association all
14 powers, duties and authority vested in the association by law
15 or the condominium instruments except for such powers, duties
16 and authority reserved by law to the members of the
17 association. The powers and duties of the board of managers
18 shall include, but shall not be limited to, the following:
19         (a) To provide for the operation, care, upkeep,
20     maintenance, replacement and improvement of the common
21     elements. Nothing in this subsection (a) shall be deemed to
22     invalidate any provision in a condominium instrument
23     placing limits on expenditures for the common elements,
24     provided, that such limits shall not be applicable to
25     expenditures for repair, replacement, or restoration of

 

 

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1     existing portions of the common elements. The term "repair,
2     replacement or restoration" means expenditures to
3     deteriorated or damaged portions of the property related to
4     the existing decorating, facilities, or structural or
5     mechanical components, interior or exterior surfaces, or
6     energy systems and equipment with the functional
7     equivalent of the original portions of such areas.
8     Replacement of the common elements may result in an
9     improvement over the original quality of such elements or
10     facilities; provided that, unless the improvement is
11     mandated by law or is an emergency as defined in item (iv)
12     of subparagraph (8) of paragraph (a) of Section 18, if the
13     improvement results in a proposed expenditure exceeding 5%
14     of the annual budget, the board of managers, upon written
15     petition by unit owners with 20% of the votes of the
16     association delivered to the board within 14 days of the
17     board action to approve the expenditure, shall call a
18     meeting of the unit owners within 30 days of the date of
19     delivery of the petition to consider the expenditure.
20     Unless a majority of the total votes of the unit owners are
21     cast at the meeting to reject the expenditure, it is
22     ratified.
23         (b) To prepare, adopt and distribute the annual budget
24     for the property.
25         (c) To levy and expend assessments.
26         (d) To collect assessments from unit owners.

 

 

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1         (e) To provide for the employment and dismissal of the
2     personnel necessary or advisable for the maintenance and
3     operation of the common elements.
4         (f) To obtain adequate and appropriate kinds of
5     insurance.
6         (g) To own, convey, encumber, lease, and otherwise deal
7     with units conveyed to or purchased by it.
8         (h) To adopt and amend rules and regulations covering
9     the details of the operation and use of the property, after
10     a meeting of the unit owners called for the specific
11     purpose of discussing the proposed rules and regulations.
12     Notice of the meeting shall contain the full text of the
13     proposed rules and regulations, and the meeting shall
14     conform to the requirements of Section 18(b) of this Act,
15     except that no quorum is required at the meeting of the
16     unit owners unless the declaration, bylaws or other
17     condominium instrument expressly provides to the contrary.
18     However, no rule or regulation may impair any rights
19     guaranteed by the First Amendment to the Constitution of
20     the United States or Section 4 of Article I of the Illinois
21     Constitution including, but not limited to, the free
22     exercise of religion, nor may any rules or regulations
23     conflict with the provisions of this Act or the condominium
24     instruments. No rule or regulation shall prohibit any
25     reasonable accommodation for religious practices,
26     including the attachment of religiously mandated objects

 

 

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1     to the front-door area of a condominium unit. However, if
2     an association that currently permits leasing amends its
3     declaration, bylaws, or rules and regulations to prohibit
4     leasing, nothing in this Act or the declarations, bylaws,
5     rules and regulations of an association shall prohibit a
6     unit owner, incorporated under 26 USC 501(c)(3), which is
7     leasing a unit at the time of the prohibition from
8     continuing to do so, until such time that the unit owner
9     voluntarily sells the unit; and no special fine, fee, dues,
10     or penalty shall be assessed against the unit owner for
11     leasing its unit.
12         (i) To keep detailed, accurate records of the receipts
13     and expenditures affecting the use and operation of the
14     property.
15         (j) To have access to each unit from time to time as
16     may be necessary for the maintenance, repair or replacement
17     of any common elements or for making emergency repairs
18     necessary to prevent damage to the common elements or to
19     other units.
20         (k) To pay real property taxes, special assessments,
21     and any other special taxes or charges of the State of
22     Illinois or of any political subdivision thereof, or other
23     lawful taxing or assessing body, which are authorized by
24     law to be assessed and levied upon the real property of the
25     condominium.
26         (l) To impose charges for late payment of a unit

 

 

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1     owner's proportionate share of the common expenses, or any
2     other expenses lawfully agreed upon, and after notice and
3     an opportunity to be heard, to levy reasonable fines for
4     violation of the declaration, by-laws, and rules and
5     regulations of the association.
6         (m) Unless the condominium instruments expressly
7     provide to the contrary, by a majority vote of the entire
8     board of managers, to assign the right of the association
9     to future income from common expenses or other sources, and
10     to mortgage or pledge substantially all of the remaining
11     assets of the association.
12         (n) To record the dedication of a portion of the common
13     elements to a public body for use as, or in connection
14     with, a street or utility where authorized by the unit
15     owners under the provisions of Section 14.2.
16         (o) To record the granting of an easement for the
17     laying of cable television cable where authorized by the
18     unit owners under the provisions of Section 14.3; to
19     obtain, if available and determined by the board to be in
20     the best interests of the association, cable television
21     service for all of the units of the condominium on a bulk
22     identical service and equal cost per unit basis; and to
23     assess and recover the expense as a common expense and, if
24     so determined by the board, to assess each and every unit
25     on the same equal cost per unit basis.
26         (p) To seek relief on behalf of all unit owners when

 

 

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1     authorized pursuant to subsection (c) of Section 10 from or
2     in connection with the assessment or levying of real
3     property taxes, special assessments, and any other special
4     taxes or changes of the State of Illinois or of any
5     political subdivision thereof or of any lawful taxing or
6     assessing body.
7         (q) To reasonably accommodate the needs of a
8     handicapped unit owner as required by the federal Civil
9     Rights Act of 1968, the Human Rights Act and any applicable
10     local ordinances in the exercise of its powers with respect
11     to the use of common elements or approval of modifications
12     in an individual unit.
13         (r) To accept service of a notice of claim for purposes
14     of the Mechanics Lien Act on behalf of each respective
15     member of the Unit Owners' Association with respect to
16     improvements performed pursuant to any contract entered
17     into by the Board of Managers or any contract entered into
18     prior to the recording of the condominium declaration
19     pursuant to this Act, for a property containing more than 8
20     units, and to distribute the notice to the unit owners
21     within 7 days of the acceptance of the service by the Board
22     of Managers. The service shall be effective as if each
23     individual unit owner had been served individually with
24     notice.
25     In the performance of their duties, the officers and
26 members of the board, whether appointed by the developer or

 

 

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1 elected by the unit owners, shall exercise the care required of
2 a fiduciary of the unit owners.
3     The collection of assessments from unit owners by an
4 association, board of managers or their duly authorized agents
5 shall not be considered acts constituting a collection agency
6 for purposes of the Collection Agency Act.
7     The provisions of this Section are applicable to all
8 condominium instruments recorded under this Act. Any portion of
9 a condominium instrument which contains provisions contrary to
10 these provisions shall be void as against public policy and
11 ineffective. Any such instrument that fails to contain the
12 provisions required by this Section shall be deemed to
13 incorporate such provisions by operation of law.
14 (Source: P.A. 94-384, eff. 1-1-06; 94-729, eff. 1-1-07.)
 
15     Section 10. The General Not For Profit Corporation Act of
16 1986 is amended by adding Section 103.35 as follows:
 
17     (805 ILCS 105/103.35 new)
18     Sec. 103.35. Leasing units.
19     (a) If a common interest community or homeowners'
20 association that currently permits leasing amends its
21 declaration, covenants, bylaws, rules, regulations, or any
22 other instruments to prohibit leasing, nothing in this Act, or
23 a common interest community or homeowners' association
24 declaration, covenants, bylaws, rules, regulations, or any

 

 

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1 other instruments, shall prohibit a unit owner, incorporated
2 under 26 USC 501(c)(3), which is leasing a unit at the time of
3 the prohibition from continuing to do so, until such time that
4 the unit owner voluntarily sells the unit; and no special fine,
5 fee, dues, or penalty shall be assessed against the unit owner
6 for leasing the unit.
7     (b) As used in this Section:
8     "homeowners' association" includes a property owners'
9 association, townhome association, and any similar entity, and
10 "homeowner" includes a townhome owner.
11     "common interest community" has the same meaning as that
12 term is given in subsection (c) of Section 9-102 of the Code of
13 Civil Procedure.