SB3497 96TH GENERAL ASSEMBLY

LRB096 20536 AJO 36223 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3497

Introduced 2/10/2010, by Sen. Dan Cronin

SYNOPSIS AS INTRODUCED:

765 ILCS 605/22.3 new
805 ILCS 105/103.40 new

Amends the Condominium Property Act and the General Not For Profit Act. Provides that: in the event of a proposed sale of a condominium unit, or a proposed sale of a unit in a common interest community or homeowners' association, by a unit owner other than the developer to a 501(c)(3) organization that intends to lease the unit for the purpose of providing affordable housing, the unit owner must disclose the proposed sale to the Board of Managers, or to the board of directors in the instance of a common interest community or homeowners' association, and request issuance of a certificate approving the sale to the 501(c)(3) organization for that purpose for as long as the 501(c)(3) organization owns the property; if the board approves the sale and issues a certificate approving the sale, the unit owner must record the certificate with the recorder; and a 501(c)(3) organization may not lease a unit for the purpose of providing affordable housing unless those requirements have been met.

A BILL FOR

AN ACT concerning civil law.

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 adding Section 22.3 as follows:

(765 ILCS 605/22.3 new)

Sec. 22.3. Sale to a 501(c)(3) organization; affordable housing.

(a) In the event of a proposed sale of a condominium unit by a unit owner other than the developer to a 501(c)(3) organization that intends to lease the unit for the purpose of providing affordable housing, the unit owner must disclose the proposed sale to the Board of Managers and request issuance of a certificate approving the sale to the 501(c)(3) organization and the lease of the unit for the purpose of providing affordable housing for as long as the 501(c)(3) organization owns the unit.

(b) If the Board approves the sale by the unit owner to a 501(c)(3) organization that intends to lease the unit for the purpose of providing affordable housing and issues a certificate approving the sale to the 501(c)(3) organization and the lease of the unit for the purpose of providing affordable housing, the unit owner must record the certificate with the recorder.

(c) A 501(c)(3) organization may not lease a unit for the purpose of providing affordable housing unless the requirements of subsections (a) and (b) have been met.

Section 10. The General Not For Profit Corporation Act of 1986 is amended by adding Section 103.40 as follows:

(805 ILCS 105/103.40 new)

Sec. 103.40. Sale to a 501(c)(3) organization; affordable housing.

(a) In the event of a proposed sale of a unit by a unit owner other than the developer to a 501(c)(3) organization that intends to lease the unit for the purpose of providing affordable housing, the unit owner must disclose the proposed sale to the board of directors and request issuance of a certificate approving the sale to the 501(c)(3) organization and the lease of the unit for the purpose of providing affordable housing for as long as the 501(c)(3) organization owns the property.

(b) If the board approves the sale by the unit owner to a 501(c)(3) organization that intends to lease the unit for the purpose of providing affordable housing and issues a certificate approving the sale to the 501(c)(3) organization and the lease of the unit for the purpose of providing affordable housing, the unit owner must record the certificate with the recorder.

(c) A 501(c)(3) organization may not lease a unit for the purpose of providing affordable housing unless the requirements of subsections (a) and (b) have been met.