Illinois General Assembly - Full Text of HB0189
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Full Text of HB0189  100th General Assembly

HB0189ham003 100TH GENERAL ASSEMBLY

Rep. André Thapedi

Filed: 4/17/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 189

2    AMENDMENT NO. ______. Amend House Bill 189 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Common Interest Community Association Act
5is amended by changing Sections 1-20 and 1-45 as follows:
 
6    (765 ILCS 160/1-20)
7    Sec. 1-20. Amendments to the declaration, bylaws, or
8operating agreement.
9    (a) The administration of every property shall be governed
10by the declaration and bylaws or operating agreement, which may
11either be embodied in the declaration or in a separate
12instrument, a true copy of which shall be appended to and
13recorded with the declaration. No modification or amendment of
14the declaration, bylaws, or operating agreement shall be valid
15unless the same is set forth in an amendment thereof and such
16amendment is duly recorded. An amendment of the declaration,

 

 

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1bylaws, or operating agreement shall be deemed effective upon
2recordation, unless the amendment sets forth a different
3effective date.
4    (b) Unless otherwise provided by this Act, amendments to
5community instruments authorized to be recorded shall be
6executed and recorded by the president of the board or such
7other officer authorized by the common interest community
8association or the community instruments.
9    (c) If an association that currently permits leasing amends
10its declaration, bylaws, or rules and regulations to prohibit
11leasing, nothing in this Act or the declarations, bylaws, rules
12and regulations of an association shall prohibit a unit owner
13incorporated under 26 USC 501(c)(3) which is leasing a unit at
14the time of the prohibition from continuing to do so until such
15time that the unit owner voluntarily sells the unit; and no
16special fine, fee, dues, or penalty shall be assessed against
17the unit owner for leasing its unit.
18    (d) No action to incorporate a common interest community as
19a municipality shall commence until an instrument agreeing to
20incorporation has been signed by two-thirds of the members.
21    (e) If the community instruments require approval of any
22mortgagee or lienholder of record and the mortgagee or
23lienholder of record receives a request to approve or consent
24to the amendment to the community instruments, the mortgagee or
25lienholder of record is deemed to have approved or consented to
26the request unless the mortgagee or lienholder of record

 

 

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1delivers a negative response to the requesting party within 60
2days after the mailing of the request. A request to approve or
3consent to an amendment to the community instruments that is
4required to be sent to a mortgagee or lienholder of record
5shall be sent by certified mail.
6(Source: P.A. 99-41, eff. 7-14-15.)
 
7    (765 ILCS 160/1-45)
8    Sec. 1-45. Finances.
9    (a) Each member shall receive through a prescribed delivery
10method, at least 30 days but not more than 60 days prior to the
11adoption thereof by the board, a copy of the proposed annual
12budget together with an indication of which portions are
13intended for reserves, capital expenditures or repairs or
14payment of real estate taxes.
15    (b) The board shall provide all members with a reasonably
16detailed summary of the receipts, common expenses, and reserves
17for the preceding budget year. The board shall (i) make
18available for review to all members an itemized accounting of
19the common expenses for the preceding year actually incurred or
20paid, together with an indication of which portions were for
21reserves, capital expenditures or repairs or payment of real
22estate taxes and with a tabulation of the amounts collected
23pursuant to the budget or assessment, and showing the net
24excess or deficit of income over expenditures plus reserves or
25(ii) provide a consolidated annual independent audit report of

 

 

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1the financial status of all fund accounts within the
2association.
3    (c) If an adopted budget or any separate assessment adopted
4by the board would result in the sum of all regular and
5separate assessments payable in the current fiscal year
6exceeding 115% of the sum of all regular and separate
7assessments payable during the preceding fiscal year, the
8common interest community association, upon written petition
9by members with 20% of the votes of the association delivered
10to the board within 14 days of the board action, shall call a
11meeting of the members within 30 days of the date of delivery
12of the petition to consider the budget or separate assessment;
13unless a majority of the total votes of the members are cast at
14the meeting to reject the budget or separate assessment, it
15shall be deemed ratified.
16    (d) If total common expenses exceed the total amount of the
17approved and adopted budget, the common interest community
18association shall disclose this variance to all its members and
19specifically identify the subsequent assessments needed to
20offset this variance in future budgets.
21    (e) Separate assessments for expenditures relating to
22emergencies or mandated by law may be adopted by the board
23without being subject to member approval or the provisions of
24subsection (c) or (f) of this Section. As used herein,
25"emergency" means a danger to or a compromise of the structural
26integrity of the common areas or any of the common facilities

 

 

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1of the common interest community. "Emergency" also includes a
2danger to the life, health or safety of the membership.
3    (f) Assessments for additions and alterations to the common
4areas or to association-owned property not included in the
5adopted annual budget, shall be separately assessed and are
6subject to approval of a simple majority of the total members
7at a meeting called for that purpose.
8    (g) The board may adopt separate assessments payable over
9more than one fiscal year. With respect to multi-year
10assessments not governed by subsections (e) and (f) of this
11Section, the entire amount of the multi-year assessment shall
12be deemed considered and authorized in the first fiscal year in
13which the assessment is approved.
14    (h) The board of a common interest community association
15shall have the authority to establish and maintain a system of
16master metering of public utility services to collect payments
17in conjunction therewith, subject to the requirements of the
18Tenant Utility Payment Disclosure Act.
19    (i) An association subject to this Act that consists of 100
20or more units shall use generally accepted accounting
21principles in fulfilling any accounting obligations under this
22Act.
23(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
2497-1090, eff. 8-24-12.)
 
25    Section 10. The Condominium Property Act is amended by

 

 

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1changing Sections 9, 15, 18, 18.4, 19, 27, and 31 and by adding
2Section 18.10 as follows:
 
3    (765 ILCS 605/9)  (from Ch. 30, par. 309)
4    Sec. 9. Sharing of expenses - Lien for nonpayment.
5    (a) All common expenses incurred or accrued prior to the
6first conveyance of a unit shall be paid by the developer, and
7during this period no common expense assessment shall be
8payable to the association. It shall be the duty of each unit
9owner including the developer to pay his proportionate share of
10the common expenses commencing with the first conveyance. The
11proportionate share shall be in the same ratio as his
12percentage of ownership in the common elements set forth in the
13declaration.
14    (b) The condominium instruments may provide that common
15expenses for insurance premiums be assessed on a basis
16reflecting increased charges for coverage on certain units.
17    (c) Budget and reserves.
18        (1) The board of managers shall prepare and distribute
19    to all unit owners a detailed proposed annual budget,
20    setting forth with particularity all anticipated common
21    expenses by category as well as all anticipated assessments
22    and other income. The initial budget and common expense
23    assessment based thereon shall be adopted prior to the
24    conveyance of any unit. The budget shall also set forth
25    each unit owner's proposed common expense assessment.

 

 

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1        (2) All budgets adopted by a board of managers on or
2    after July 1, 1990 shall provide for reasonable reserves
3    for capital expenditures and deferred maintenance for
4    repair or replacement of the common elements. To determine
5    the amount of reserves appropriate for an association, the
6    board of managers shall take into consideration the
7    following: (i) the repair and replacement cost, and the
8    estimated useful life, of the property which the
9    association is obligated to maintain, including but not
10    limited to structural and mechanical components, surfaces
11    of the buildings and common elements, and energy systems
12    and equipment; (ii) the current and anticipated return on
13    investment of association funds; (iii) any independent
14    professional reserve study which the association may
15    obtain; (iv) the financial impact on unit owners, and the
16    market value of the condominium units, of any assessment
17    increase needed to fund reserves; and (v) the ability of
18    the association to obtain financing or refinancing.
19        (3) Notwithstanding the provisions of this subsection
20    (c), an association without a reserve requirement in its
21    condominium instruments may elect to waive in whole or in
22    part the reserve requirements of this Section by a vote of
23    2/3 of the total votes of the association. Any association
24    having elected under this paragraph (3) to waive the
25    provisions of subsection (c) may by a vote of 2/3 of the
26    total votes of the association elect to again be governed

 

 

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1    by the requirements of subsection (c).
2        (4) In the event that an association elects to waive
3    all or part of the reserve requirements of this Section,
4    that fact must be disclosed after the meeting at which the
5    waiver occurs by the association in the financial
6    statements of the association and, highlighted in bold
7    print, in the response to any request of a prospective
8    purchaser for the information prescribed under Section
9    22.1; and no member of the board of managers or the
10    managing agent of the association shall be liable, and no
11    cause of action may be brought for damages against these
12    parties, for the lack or inadequacy of reserve funds in the
13    association budget.
14        (5) At the end of an association's fiscal year and
15    after the association has approved any end-of-year fiscal
16    audit, if applicable, if the fiscal year ended with a
17    surplus of funds over actual expenses, including budgeted
18    reserve fund contributions, then, to the extent that there
19    are not any contrary provisions in the association's
20    declaration and bylaws, the board of managers has the
21    authority, in its discretion, to dispose of the surplus in
22    one or more of the following ways: (i) contribute the
23    surplus to the association's reserve fund; (ii) return the
24    surplus to the unit owners as a credit against the
25    remaining monthly assessments for the current fiscal year;
26    (iii) return the surplus to the unit owners in the form of

 

 

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1    a direct payment to the unit owners; or (iv) maintain the
2    funds in the operating account, in which case the funds
3    shall be applied as a credit when calculating the following
4    year's annual budget. If the fiscal year ends in a deficit,
5    then, to the extent that there are not any contrary
6    provisions in the association's declaration and bylaws,
7    the board of managers has the authority, in its discretion,
8    to address the deficit by incorporating it into the
9    following year's annual budget. If 20% of the unit owners
10    of the association deliver a petition objecting to the
11    action under this paragraph (5) within 30 days after notice
12    to the unit owners of the action, the board of managers
13    shall call a meeting of the unit owners within 30 days of
14    the date of delivery of the petition. At the meeting, the
15    unit owners may vote to select a different option than the
16    option selected by the board of managers. Unless a majority
17    of the total votes of the unit owners are cast at the
18    meeting to reject the board's selection and select a
19    different option, the board's decision is ratified.
20    (d) (Blank).
21    (e) The condominium instruments may provide for the
22assessment, in connection with expenditures for the limited
23common elements, of only those units to which the limited
24common elements are assigned.
25    (f) Payment of any assessment shall be in amounts and at
26times determined by the board of managers.

 

 

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1    (g) Lien.
2        (1) If any unit owner shall fail or refuse to make any
3    payment of the common expenses or the amount of any unpaid
4    fine when due, the amount thereof together with any
5    interest, late charges, reasonable attorney fees incurred
6    enforcing the covenants of the condominium instruments,
7    rules and regulations of the board of managers, or any
8    applicable statute or ordinance, and costs of collections
9    shall constitute a lien on the interest of the unit owner
10    in the property prior to all other liens and encumbrances,
11    recorded or unrecorded, except only (a) taxes, special
12    assessments and special taxes theretofore or thereafter
13    levied by any political subdivision or municipal
14    corporation of this State and other State or federal taxes
15    which by law are a lien on the interest of the unit owner
16    prior to preexisting recorded encumbrances thereon and (b)
17    encumbrances on the interest of the unit owner recorded
18    prior to the date of such failure or refusal which by law
19    would be a lien thereon prior to subsequently recorded
20    encumbrances. Any action brought to extinguish the lien of
21    the association shall include the association as a party.
22        (2) With respect to encumbrances executed prior to
23    August 30, 1984 or encumbrances executed subsequent to
24    August 30, 1984 which are neither bonafide first mortgages
25    nor trust deeds and which encumbrances contain a statement
26    of a mailing address in the State of Illinois where notice

 

 

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1    may be mailed to the encumbrancer thereunder, if and
2    whenever and as often as the manager or board of managers
3    shall send, by United States certified or registered mail,
4    return receipt requested, to any such encumbrancer at the
5    mailing address set forth in the recorded encumbrance a
6    statement of the amounts and due dates of the unpaid common
7    expenses with respect to the encumbered unit, then, unless
8    otherwise provided in the declaration or bylaws, the prior
9    recorded encumbrance shall be subject to the lien of all
10    unpaid common expenses with respect to the unit which
11    become due and payable within a period of 90 days after the
12    date of mailing of each such notice.
13        (3) The purchaser of a condominium unit at a judicial
14    foreclosure sale, or a mortgagee who receives title to a
15    unit by deed in lieu of foreclosure or judgment by common
16    law strict foreclosure or otherwise takes possession
17    pursuant to court order under the Illinois Mortgage
18    Foreclosure Law, shall have the duty to pay the unit's
19    proportionate share of the common expenses for the unit
20    assessed from and after the first day of the month after
21    the date of the judicial foreclosure sale, delivery of the
22    deed in lieu of foreclosure, entry of a judgment in common
23    law strict foreclosure, or taking of possession pursuant to
24    such court order. Such payment confirms the extinguishment
25    of any lien created pursuant to paragraph (1) or (2) of
26    this subsection (g) by virtue of the failure or refusal of

 

 

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1    a prior unit owner to make payment of common expenses,
2    where the judicial foreclosure sale has been confirmed by
3    order of the court, a deed in lieu thereof has been
4    accepted by the lender, or a consent judgment has been
5    entered by the court.
6        (4) The purchaser of a condominium unit at a judicial
7    foreclosure sale, other than a mortgagee, who takes
8    possession of a condominium unit pursuant to a court order
9    or a purchaser who acquires title from a mortgagee shall
10    have the duty to pay the proportionate share, if any, of
11    the common expenses for the unit which would have become
12    due in the absence of any assessment acceleration during
13    the 6 months immediately preceding institution of an action
14    to enforce the collection of assessments, and which remain
15    unpaid by the owner during whose possession the assessments
16    accrued. If the outstanding assessments are paid at any
17    time during any action to enforce the collection of
18    assessments, the purchaser shall have no obligation to pay
19    any assessments which accrued before he or she acquired
20    title.
21        (5) The notice of sale of a condominium unit under
22    subsection (c) of Section 15-1507 of the Code of Civil
23    Procedure shall state that the purchaser of the unit other
24    than a mortgagee shall pay the assessments and the legal
25    fees required by subdivisions (g)(1) and (g)(4) of Section
26    9 of this Act. The statement of assessment account issued

 

 

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1    by the association to a unit owner under subsection (i) of
2    Section 18 of this Act, and the disclosure statement issued
3    to a prospective purchaser under Section 22.1 of this Act,
4    shall state the amount of the assessments and the legal
5    fees, if any, required by subdivisions (g)(1) and (g)(4) of
6    Section 9 of this Act.
7    (h) A lien for common expenses shall be in favor of the
8members of the board of managers and their successors in office
9and shall be for the benefit of all other unit owners. Notice
10of the lien may be recorded by the board of managers, or if the
11developer is the manager or has a majority of seats on the
12board of managers and the manager or board of managers fails to
13do so, any unit owner may record notice of the lien. Upon the
14recording of such notice the lien may be foreclosed by an
15action brought in the name of the board of managers in the same
16manner as a mortgage of real property.
17    (i) Unless otherwise provided in the declaration, the
18members of the board of managers and their successors in
19office, acting on behalf of the other unit owners, shall have
20the power to bid on the interest so foreclosed at the
21foreclosure sale, and to acquire and hold, lease, mortgage and
22convey it.
23    (j) Any encumbrancer may from time to time request in
24writing a written statement from the manager or board of
25managers setting forth the unpaid common expenses with respect
26to the unit covered by his encumbrance. Unless the request is

 

 

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1complied with within 20 days, all unpaid common expenses which
2become due prior to the date of the making of such request
3shall be subordinate to the lien of the encumbrance. Any
4encumbrancer holding a lien on a unit may pay any unpaid common
5expenses payable with respect to the unit, and upon payment the
6encumbrancer shall have a lien on the unit for the amounts paid
7at the same rank as the lien of his encumbrance.
8    (k) Nothing in Public Act 83-1271 is intended to change the
9lien priorities of any encumbrance created prior to August 30,
101984.
11(Source: P.A. 94-1049, eff. 1-1-07.)
 
12    (765 ILCS 605/15)  (from Ch. 30, par. 315)
13    Sec. 15. Sale of property.
14    (a) Unless a greater percentage is provided for in the
15declaration or bylaws, and notwithstanding the provisions of
16Sections 13 and 14 hereof, a majority of the unit owners where
17the property contains 2 units, or not less than 66 2/3% where
18the property contains three units, and not less than 75% where
19the property contains 4 or more units may, by affirmative vote
20at a meeting of unit owners duly called for such purpose, elect
21to sell the property. Such action shall be binding upon all
22unit owners, and it shall thereupon become the duty of every
23unit owner to execute and deliver such instruments and to
24perform all acts as in manner and form may be necessary to
25effect such sale, provided, however, that any unit owner who

 

 

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1did not vote in favor of such action and who has filed written
2objection thereto with the manager or board of managers within
320 days after the date of the meeting at which such sale was
4approved shall be entitled to receive from the proceeds of such
5sale an amount equivalent to the greater of: (i) the value of
6his or her interest, as determined by a fair appraisal, less
7the amount of any unpaid assessments or charges due and owing
8from such unit owner or (ii) the outstanding balance of any
9bona fide debt secured by the objecting unit owner's interest
10which was incurred by such unit owner in connection with the
11acquisition or refinance of the unit owner's interest, less the
12amount of any unpaid assessments or charges due and owing from
13such unit owner. The objecting unit owner is also entitled to
14receive from the proceeds of a sale under this Section
15reimbursement for reasonable relocation costs, determined in
16the same manner as under the federal Uniform Relocation
17Assistance and Real Property Acquisition Policies Act of 1970,
18as amended from time to time, and as implemented by regulations
19promulgated under that Act.
20    (b) If there is a disagreement as to the value of the
21interest of a unit owner who did not vote in favor of the sale
22of the property, that unit owner shall have a right to
23designate an expert in appraisal or property valuation to
24represent him, in which case, the prospective purchaser of the
25property shall designate an expert in appraisal or property
26valuation to represent him, and both of these experts shall

 

 

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1mutually designate a third expert in appraisal or property
2valuation. The 3 experts shall constitute a panel to determine
3by vote of at least 2 of the members of the panel, the value of
4that unit owner's interest in the property. The changes made by
5this amendatory Act of the 100th General Assembly apply to
6sales under this Section that are pending or commenced on and
7after the effective date of this amendatory Act of the 100th
8General Assembly.
9(Source: P.A. 86-1156.)
 
10    (765 ILCS 605/18)  (from Ch. 30, par. 318)
11    Sec. 18. Contents of bylaws. The bylaws shall provide for
12at least the following:
13        (a)(1) The election from among the unit owners of a
14    board of managers, the number of persons constituting such
15    board, and that the terms of at least one-third of the
16    members of the board shall expire annually and that all
17    members of the board shall be elected at large; if there
18    are multiple owners of a single unit, only one of the
19    multiple owners shall be eligible to serve as a member of
20    the board at any one time;
21        (2) the powers and duties of the board;
22        (3) the compensation, if any, of the members of the
23    board;
24        (4) the method of removal from office of members of the
25    board;

 

 

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

 

 

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1    fiscal year exceeding 115% of the sum of all regular and
2    separate assessments payable during the preceding fiscal
3    year, the board of managers, upon written petition by unit
4    owners with 20 percent of the votes of the association
5    delivered to the board within 21 14 days of the board
6    action, shall call a meeting of the unit owners within 30
7    days of the date of delivery of the petition to consider
8    the budget or separate assessment; unless a majority of the
9    total votes of the unit owners are cast at the meeting to
10    reject the budget or separate assessment, it is ratified,
11    (iii) that any common expense not set forth in the budget
12    or any increase in assessments over the amount adopted in
13    the budget shall be separately assessed against all unit
14    owners, (iv) that separate assessments for expenditures
15    relating to emergencies or mandated by law may be adopted
16    by the board of managers without being subject to unit
17    owner approval or the provisions of item (ii) above or item
18    (v) below. As used herein, "emergency" means an immediate
19    danger to the structural integrity of the common elements
20    or to the life, health, safety or property of the unit
21    owners, (v) that assessments for additions and alterations
22    to the common elements or to association-owned property not
23    included in the adopted annual budget, shall be separately
24    assessed and are subject to approval of two-thirds of the
25    total votes of all unit owners, (vi) that the board of
26    managers may adopt separate assessments payable over more

 

 

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1    than one fiscal year. With respect to multi-year
2    assessments not governed by items (iv) and (v), the entire
3    amount of the multi-year assessment shall be deemed
4    considered and authorized in the first fiscal year in which
5    the assessment is approved;
6        (9)(A) that every meeting of the board of managers
7    shall be open to any unit owner, except that the board may
8    close any portion of a noticed meeting or meet separately
9    from a noticed meeting to: (i) discuss litigation when an
10    action against or on behalf of the particular association
11    has been filed and is pending in a court or administrative
12    tribunal, or when the board of managers finds that such an
13    action is probable or imminent, (ii) discuss the
14    appointment, employment, engagement, or dismissal of an
15    employee, independent contractor, agent, or other provider
16    of goods and services, (iii) interview a potential
17    employee, independent contractor, agent, or other provider
18    of goods and services, (iv) discuss violations of rules and
19    regulations of the association, (v) discuss a unit owner's
20    unpaid share of common expenses, or (vi) consult with the
21    association's legal counsel; that any vote on these matters
22    shall take place at a meeting of the board of managers or
23    portion thereof open to any unit owner;
24        (B) that board members may participate in and act at
25    any meeting of the board of managers in person, by
26    telephonic means, or by use of any acceptable technological

 

 

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1    means whereby all persons participating in the meeting can
2    communicate with each other; that participation
3    constitutes attendance and presence in person at the
4    meeting;
5        (C) that any unit owner may record the proceedings at
6    meetings of the board of managers or portions thereof
7    required to be open by this Act by tape, film or other
8    means, and that the board may prescribe reasonable rules
9    and regulations to govern the right to make such
10    recordings;
11        (D) that notice of every meeting of the board of
12    managers shall be given to every board member at least 48
13    hours prior thereto, unless the board member waives notice
14    of the meeting pursuant to subsection (a) of Section 18.8;
15    and
16        (E) that notice of every meeting of the board of
17    managers shall be posted in entranceways, elevators, or
18    other conspicuous places in the condominium at least 48
19    hours prior to the meeting of the board of managers except
20    where there is no common entranceway for 7 or more units,
21    the board of managers may designate one or more locations
22    in the proximity of these units where the notices of
23    meetings shall be posted; that notice of every meeting of
24    the board of managers shall also be given at least 48 hours
25    prior to the meeting, or such longer notice as this Act may
26    separately require, to: (i) each unit owner who has

 

 

10000HB0189ham003- 21 -LRB100 03859 KTG 25183 a

1    provided the association with written authorization to
2    conduct business by acceptable technological means, and
3    (ii) to the extent that the condominium instruments of an
4    association require, to each other unit owner, as required
5    by subsection (f) of Section 18.8, by mail or delivery, and
6    that no other notice of a meeting of the board of managers
7    need be given to any unit owner;
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

 

 

10000HB0189ham003- 22 -LRB100 03859 KTG 25183 a

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 21 20 days
20    after such notice and such election shall be held within 30
21    days after filing the petition; for purposes of this
22    subsection, a board member's immediate family means the
23    board member's 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

 

 

10000HB0189ham003- 23 -LRB100 03859 KTG 25183 a

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;
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; and
20        (21) that the board may ratify and confirm actions of
21    the members of the board taken in response to an emergency,
22    as that term is defined in subdivision (a)(8)(iv) of this
23    Section; that the board shall give notice to the unit
24    owners of: (i) the occurrence of the emergency event within
25    7 business days after the emergency event, and (ii) the
26    general description of the actions taken to address the

 

 

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1    event within 7 days after the emergency event.
2        The intent of the provisions of Public Act 99-472
3    adding this paragraph (21) is to empower and support boards
4    to act in emergencies.
5        (b)(1) What percentage of the unit owners, if other
6    than 20%, shall constitute a quorum provided that, for
7    condominiums with 20 or more units, the percentage of unit
8    owners constituting a quorum shall be 20% unless the unit
9    owners holding a majority of the percentage interest in the
10    association provide for a higher percentage, provided that
11    in voting on amendments to the association's bylaws, a unit
12    owner who is in arrears on the unit owner's regular or
13    separate assessments for 60 days or more, shall not be
14    counted for purposes of determining if a quorum is present,
15    but that unit owner retains the right to vote on amendments
16    to the association's bylaws;
17        (2) that the association shall have one class of
18    membership;
19        (3) that the members shall hold an annual meeting, one
20    of the purposes of which shall be to elect members of the
21    board of managers;
22        (4) the method of calling meetings of the unit owners;
23        (5) that special meetings of the members can be called
24    by the president, board of managers, or by 20% of unit
25    owners;
26        (6) that written notice of any membership meeting shall

 

 

10000HB0189ham003- 25 -LRB100 03859 KTG 25183 a

1    be mailed or delivered giving members no less than 10 and
2    no more than 30 days notice of the time, place and purpose
3    of such meeting except that notice may be sent, to the
4    extent the condominium instruments or rules adopted
5    thereunder expressly so provide, by electronic
6    transmission consented to by the unit owner to whom the
7    notice is given, provided the director and officer or his
8    agent certifies in writing to the delivery by electronic
9    transmission;
10        (7) that voting shall be on a percentage basis, and
11    that the percentage vote to which each unit is entitled is
12    the percentage interest of the undivided ownership of the
13    common elements appurtenant thereto, provided that the
14    bylaws may provide for approval by unit owners in
15    connection with matters where the requisite approval on a
16    percentage basis is not specified in this Act, on the basis
17    of one vote per unit;
18        (8) that, where there is more than one owner of a unit,
19    if only one of the multiple owners is present at a meeting
20    of the association, he is entitled to cast all the votes
21    allocated to that unit, if more than one of the multiple
22    owners are present, the votes allocated to that unit may be
23    cast only in accordance with the agreement of a majority in
24    interest of the multiple owners, unless the declaration
25    expressly provides otherwise, that there is majority
26    agreement if any one of the multiple owners cast the votes

 

 

10000HB0189ham003- 26 -LRB100 03859 KTG 25183 a

1    allocated to that unit without protest being made promptly
2    to the person presiding over the meeting by any of the
3    other owners of the unit;
4        (9)(A) except as provided in subparagraph (B) of this
5    paragraph (9) in connection with board elections, that a
6    unit owner may vote by proxy executed in writing by the
7    unit owner or by his duly authorized attorney in fact; that
8    the proxy must bear the date of execution and, unless the
9    condominium instruments or the written proxy itself
10    provide otherwise, is invalid after 11 months from the date
11    of its execution; to the extent the condominium instruments
12    or rules adopted thereunder expressly so provide, a vote or
13    proxy may be submitted by electronic transmission,
14    provided that any such electronic transmission shall
15    either set forth or be submitted with information from
16    which it can be determined that the electronic transmission
17    was authorized by the unit owner or the unit owner's proxy;
18        (B) that if a rule adopted at least 120 days before a
19    board election or the declaration or bylaws provide for
20    balloting as set forth in this subsection, unit owners may
21    not vote by proxy in board elections, but may vote only (i)
22    by submitting an association-issued ballot in person at the
23    election meeting or (ii) by submitting an
24    association-issued ballot to the association or its
25    designated agent by mail or other means of delivery
26    specified in the declaration, bylaws, or rule; that the

 

 

10000HB0189ham003- 27 -LRB100 03859 KTG 25183 a

1    ballots shall be mailed or otherwise distributed to unit
2    owners not less than 10 and not more than 30 days before
3    the election meeting, and the board shall give unit owners
4    not less than 21 days' prior written notice of the deadline
5    for inclusion of a candidate's name on the ballots; that
6    the deadline shall be no more than 7 days before the
7    ballots are mailed or otherwise distributed to unit owners;
8    that every such ballot must include the names of all
9    candidates who have given the board or its authorized agent
10    timely written notice of their candidacy and must give the
11    person casting the ballot the opportunity to cast votes for
12    candidates whose names do not appear on the ballot; that a
13    ballot received by the association or its designated agent
14    after the close of voting shall not be counted; that a unit
15    owner who submits a ballot by mail or other means of
16    delivery specified in the declaration, bylaws, or rule may
17    request and cast a ballot in person at the election
18    meeting, and thereby void any ballot previously submitted
19    by that unit owner;
20        (B-5) that if a rule adopted at least 120 days before a
21    board election or the declaration or bylaws provide for
22    balloting as set forth in this subparagraph, unit owners
23    may not vote by proxy in board elections, but may vote only
24    (i) by submitting an association-issued ballot in person at
25    the election meeting; or (ii) by any acceptable
26    technological means as defined in Section 2 of this Act;

 

 

10000HB0189ham003- 28 -LRB100 03859 KTG 25183 a

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

 

 

10000HB0189ham003- 29 -LRB100 03859 KTG 25183 a

1    total votes of the unit owners are cast at the meeting to
2    reject the rule, the rule is ratified;
3        (D) that votes cast by ballot under subparagraph (B) or
4    electronic or acceptable technological means under
5    subparagraph (B-5) of this paragraph (9) are valid for the
6    purpose of establishing a quorum;
7        (10) that the association may, upon adoption of the
8    appropriate rules by the board of managers, conduct
9    elections by secret ballot whereby the voting ballot is
10    marked only with the percentage interest for the unit and
11    the vote itself, provided that the board further adopt
12    rules to verify the status of the unit owner issuing a
13    proxy or casting a ballot; and further, that a candidate
14    for election to the board of managers or such candidate's
15    representative shall have the right to be present at the
16    counting of ballots at such election;
17        (11) that in the event of a resale of a condominium
18    unit the purchaser of a unit from a seller other than the
19    developer pursuant to an installment contract for purchase
20    shall during such times as he or she resides in the unit be
21    counted toward a quorum for purposes of election of members
22    of the board of managers at any meeting of the unit owners
23    called for purposes of electing members of the board, shall
24    have the right to vote for the election of members of the
25    board of managers and to be elected to and serve on the
26    board of managers unless the seller expressly retains in

 

 

10000HB0189ham003- 30 -LRB100 03859 KTG 25183 a

1    writing any or all of such rights. In no event may the
2    seller and purchaser both be counted toward a quorum, be
3    permitted to vote for a particular office or be elected and
4    serve on the board. Satisfactory evidence of the
5    installment contract shall be made available to the
6    association or its agents. For purposes of this subsection,
7    "installment contract" shall have the same meaning as set
8    forth in Section 1(e) of the Dwelling Unit Installment
9    Contract Act;
10        (12) the method by which matters subject to the
11    approval of unit owners set forth in this Act, or in the
12    condominium instruments, will be submitted to the unit
13    owners at special membership meetings called for such
14    purposes; and
15        (13) that matters subject to the affirmative vote of
16    not less than 2/3 of the votes of unit owners at a meeting
17    duly called for that purpose, shall include, but not be
18    limited to:
19        (i) merger or consolidation of the association;
20        (ii) sale, lease, exchange, or other disposition
21        (excluding the mortgage or pledge) of all, or
22        substantially all of the property and assets of the
23        association; and
24        (iii) the purchase or sale of land or of units on
25        behalf of all unit owners.
26        (c) Election of a president from among the board of

 

 

10000HB0189ham003- 31 -LRB100 03859 KTG 25183 a

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

 

 

10000HB0189ham003- 32 -LRB100 03859 KTG 25183 a

1    management company. The association shall be the direct
2    obligee of any such fidelity bond. A management company
3    holding reserve funds of an association shall at all times
4    maintain a separate account for each association,
5    provided, however, that for investment purposes, the Board
6    of Managers of an association may authorize a management
7    company to maintain the association's reserve funds in a
8    single interest bearing account with similar funds of other
9    associations. The management company shall at all times
10    maintain records identifying all moneys of each
11    association in such investment account. The management
12    company may hold all operating funds of associations which
13    it manages in a single operating account but shall at all
14    times maintain records identifying all moneys of each
15    association in such operating account. Such operating and
16    reserve funds held by the management company for the
17    association shall not be subject to attachment by any
18    creditor of the management company.
19        For the purpose of this subsection, a management
20    company shall be defined as a person, partnership,
21    corporation, or other legal entity entitled to transact
22    business on behalf of others, acting on behalf of or as an
23    agent for a unit owner, unit owners or association of unit
24    owners for the purpose of carrying out the duties,
25    responsibilities, and other obligations necessary for the
26    day to day operation and management of any property subject

 

 

10000HB0189ham003- 33 -LRB100 03859 KTG 25183 a

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

 

 

10000HB0189ham003- 34 -LRB100 03859 KTG 25183 a

1    elements.
2        (k) Such restrictions on and requirements respecting
3    the use and maintenance of the units and the use of the
4    common elements, not set forth in the declaration, as are
5    designed to prevent unreasonable interference with the use
6    of their respective units and of the common elements by the
7    several unit owners.
8        (l) Method of adopting and of amending administrative
9    rules and regulations governing the operation and use of
10    the common elements.
11        (m) The percentage of votes required to modify or amend
12    the bylaws, but each one of the particulars set forth in
13    this section shall always be embodied in the bylaws.
14        (n)(i) The provisions of this Act, the declaration,
15    bylaws, other condominium instruments, and rules and
16    regulations that relate to the use of the individual unit
17    or the common elements shall be applicable to any person
18    leasing a unit and shall be deemed to be incorporated in
19    any lease executed or renewed on or after August 30, 1984
20    (the effective date of Public Act 83-1271).
21        (ii) With regard to any lease entered into subsequent
22    to July 1, 1990 (the effective date of Public Act 86-991),
23    the unit owner leasing the unit shall deliver a copy of the
24    signed lease to the board or if the lease is oral, a
25    memorandum of the lease, not later than the date of
26    occupancy or 10 days after the lease is signed, whichever

 

 

10000HB0189ham003- 35 -LRB100 03859 KTG 25183 a

1    occurs first. In addition to any other remedies, by filing
2    an action jointly against the tenant and the unit owner, an
3    association may seek to enjoin a tenant from occupying a
4    unit or seek to evict a tenant under the provisions of
5    Article IX of the Code of Civil Procedure for failure of
6    the lessor-owner to comply with the leasing requirements
7    prescribed by this Section or by the declaration, bylaws,
8    and rules and regulations. The board of managers may
9    proceed directly against a tenant, at law or in equity, or
10    under the provisions of Article IX of the Code of Civil
11    Procedure, for any other breach by tenant of any covenants,
12    rules, regulations or bylaws.
13        (o) The association shall have no authority to forbear
14    the payment of assessments by any unit owner.
15        (p) That when 30% or fewer of the units, by number,
16    possess over 50% in the aggregate of the votes in the
17    association, any percentage vote of members specified
18    herein or in the condominium instruments shall require the
19    specified percentage by number of units rather than by
20    percentage of interest in the common elements allocated to
21    units that would otherwise be applicable and garage units
22    or storage units, or both, shall have, in total, no more
23    votes than their aggregate percentage of ownership in the
24    common elements; this shall mean that if garage units or
25    storage units, or both, are to be given a vote, or portion
26    of a vote, that the association must add the total number

 

 

10000HB0189ham003- 36 -LRB100 03859 KTG 25183 a

1    of votes cast of garage units, storage units, or both, and
2    divide the total by the number of garage units, storage
3    units, or both, and multiply by the aggregate percentage of
4    ownership of garage units and storage units to determine
5    the vote, or portion of a vote, that garage units or
6    storage units, or both, have. For purposes of this
7    subsection (p), when making a determination of whether 30%
8    or fewer of the units, by number, possess over 50% in the
9    aggregate of the votes in the association, a unit shall not
10    include a garage unit or a storage unit.
11        (q) That a unit owner may not assign, delegate,
12    transfer, surrender, or avoid the duties,
13    responsibilities, and liabilities of a unit owner under
14    this Act, the condominium instruments, or the rules and
15    regulations of the Association; and that such an attempted
16    assignment, delegation, transfer, surrender, or avoidance
17    shall be deemed void.
18    The provisions of this Section are applicable to all
19condominium instruments recorded under this Act. Any portion of
20a condominium instrument which contains provisions contrary to
21these provisions shall be void as against public policy and
22ineffective. Any such instrument which fails to contain the
23provisions required by this Section shall be deemed to
24incorporate such provisions by operation of law.
25(Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16;
2699-567, eff. 1-1-17; 99-642, eff. 7-28-16.)
 

 

 

10000HB0189ham003- 37 -LRB100 03859 KTG 25183 a

1    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
2    Sec. 18.4. Powers and duties of board of managers. The
3board of managers shall exercise for the association all
4powers, duties and authority vested in the association by law
5or the condominium instruments except for such powers, duties
6and authority reserved by law to the members of the
7association. The powers and duties of the board of managers
8shall include, but shall not be limited to, the following:
9        (a) To provide for the operation, care, upkeep,
10    maintenance, replacement and improvement of the common
11    elements. Nothing in this subsection (a) shall be deemed to
12    invalidate any provision in a condominium instrument
13    placing limits on expenditures for the common elements,
14    provided, that such limits shall not be applicable to
15    expenditures for repair, replacement, or restoration of
16    existing portions of the common elements. The term "repair,
17    replacement or restoration" means expenditures to
18    deteriorated or damaged portions of the property related to
19    the existing decorating, facilities, or structural or
20    mechanical components, interior or exterior surfaces, or
21    energy systems and equipment with the functional
22    equivalent of the original portions of such areas.
23    Replacement of the common elements may result in an
24    improvement over the original quality of such elements or
25    facilities; provided that, unless the improvement is

 

 

10000HB0189ham003- 38 -LRB100 03859 KTG 25183 a

1    mandated by law or is an emergency as defined in item (iv)
2    of subparagraph (8) of paragraph (a) of Section 18, if the
3    improvement results in a proposed expenditure exceeding 5%
4    of the annual budget, the board of managers, upon written
5    petition by unit owners with 20% of the votes of the
6    association delivered to the board within 21 14 days of the
7    board action to approve the expenditure, shall call a
8    meeting of the unit owners within 30 days of the date of
9    delivery of the petition to consider the expenditure.
10    Unless a majority of the total votes of the unit owners are
11    cast at the meeting to reject the expenditure, it is
12    ratified.
13        (b) To prepare, adopt and distribute the annual budget
14    for the property.
15        (c) To levy and expend assessments.
16        (d) To collect assessments from unit owners.
17        (e) To provide for the employment and dismissal of the
18    personnel necessary or advisable for the maintenance and
19    operation of the common elements.
20        (f) To obtain adequate and appropriate kinds of
21    insurance.
22        (g) To own, convey, encumber, lease, and otherwise deal
23    with units conveyed to or purchased by it.
24        (h) To adopt and amend rules and regulations covering
25    the details of the operation and use of the property, after
26    a meeting of the unit owners called for the specific

 

 

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1    purpose of discussing the proposed rules and regulations.
2    Notice of the meeting shall contain the full text of the
3    proposed rules and regulations, and the meeting shall
4    conform to the requirements of Section 18(b) of this Act,
5    except that no quorum is required at the meeting of the
6    unit owners unless the declaration, bylaws or other
7    condominium instrument expressly provides to the contrary.
8    However, no rule or regulation may impair any rights
9    guaranteed by the First Amendment to the Constitution of
10    the United States or Section 4 of Article I of the Illinois
11    Constitution including, but not limited to, the free
12    exercise of religion, nor may any rules or regulations
13    conflict with the provisions of this Act or the condominium
14    instruments. No rule or regulation shall prohibit any
15    reasonable accommodation for religious practices,
16    including the attachment of religiously mandated objects
17    to the front-door area of a condominium unit.
18        (i) To keep detailed, accurate records of the receipts
19    and expenditures affecting the use and operation of the
20    property.
21        (j) To have access to each unit from time to time as
22    may be necessary for the maintenance, repair or replacement
23    of any common elements or for making emergency repairs
24    necessary to prevent damage to the common elements or to
25    other units.
26        (k) To pay real property taxes, special assessments,

 

 

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1    and any other special taxes or charges of the State of
2    Illinois or of any political subdivision thereof, or other
3    lawful taxing or assessing body, which are authorized by
4    law to be assessed and levied upon the real property of the
5    condominium.
6        (l) To impose charges for late payment of a unit
7    owner's proportionate share of the common expenses, or any
8    other expenses lawfully agreed upon, and after notice and
9    an opportunity to be heard, to levy reasonable fines for
10    violation of the declaration, by-laws, and rules and
11    regulations of the association.
12        (m) By a majority vote of the entire board of managers,
13    to assign the right of the association to future income
14    from common expenses or other sources, and to mortgage or
15    pledge substantially all of the remaining assets of the
16    association.
17        (n) To record the dedication of a portion of the common
18    elements to a public body for use as, or in connection
19    with, a street or utility where authorized by the unit
20    owners under the provisions of Section 14.2.
21        (o) To record the granting of an easement for the
22    laying of cable television or high speed Internet cable
23    where authorized by the unit owners under the provisions of
24    Section 14.3; to obtain, if available and determined by the
25    board to be in the best interests of the association, cable
26    television or bulk high speed Internet service for all of

 

 

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1    the units of the condominium on a bulk identical service
2    and equal cost per unit basis; and to assess and recover
3    the expense as a common expense and, if so determined by
4    the board, to assess each and every unit on the same equal
5    cost per unit basis.
6        (p) To seek relief on behalf of all unit owners when
7    authorized pursuant to subsection (c) of Section 10 from or
8    in connection with the assessment or levying of real
9    property taxes, special assessments, and any other special
10    taxes or charges of the State of Illinois or of any
11    political subdivision thereof or of any lawful taxing or
12    assessing body.
13        (q) To reasonably accommodate the needs of a unit owner
14    who is a person with a disability as required by the
15    federal Civil Rights Act of 1968, the Human Rights Act and
16    any applicable local ordinances in the exercise of its
17    powers with respect to the use of common elements or
18    approval of modifications in an individual unit.
19        (r) To accept service of a notice of claim for purposes
20    of the Mechanics Lien Act on behalf of each respective
21    member of the Unit Owners' Association with respect to
22    improvements performed pursuant to any contract entered
23    into by the Board of Managers or any contract entered into
24    prior to the recording of the condominium declaration
25    pursuant to this Act, for a property containing more than 8
26    units, and to distribute the notice to the unit owners

 

 

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1    within 7 days of the acceptance of the service by the Board
2    of Managers. The service shall be effective as if each
3    individual unit owner had been served individually with
4    notice.
5        (s) To adopt and amend rules and regulations (l)
6    authorizing electronic delivery of notices and other
7    communications required or contemplated by this Act to each
8    unit owner who provides the association with written
9    authorization for electronic delivery and an electronic
10    address to which such communications are to be
11    electronically transmitted; and (2) authorizing each unit
12    owner to designate an electronic address or a U.S. Postal
13    Service address, or both, as the unit owner's address on
14    any list of members or unit owners which an association is
15    required to provide upon request pursuant to any provision
16    of this Act or any condominium instrument.
17    In the performance of their duties, the officers and
18members of the board, whether appointed by the developer or
19elected by the unit owners, shall exercise the care required of
20a fiduciary of the unit owners.
21    The collection of assessments from unit owners by an
22association, board of managers or their duly authorized agents
23shall not be considered acts constituting a collection agency
24for purposes of the Collection Agency Act.
25    The provisions of this Section are applicable to all
26condominium instruments recorded under this Act. Any portion of

 

 

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1a condominium instrument which contains provisions contrary to
2these provisions shall be void as against public policy and
3ineffective. Any such instrument that fails to contain the
4provisions required by this Section shall be deemed to
5incorporate such provisions by operation of law.
6(Source: P.A. 98-735, eff. 1-1-15; 99-143, eff. 7-27-15;
799-849, eff. 1-1-17.)
 
8    (765 ILCS 605/18.10 new)
9    Sec. 18.10. Generally accepted accounting principles. An
10association subject to this Act that consists of 100 or more
11units shall use generally accepted accounting principles in
12fulfilling any accounting obligations under this Act.
 
13    (765 ILCS 605/19)  (from Ch. 30, par. 319)
14    Sec. 19. Records of the association; availability for
15examination.
16    (a) The board of managers of every association shall keep
17and maintain the following records, or true and complete copies
18of these records, at the association's principal office:
19        (1) the association's declaration, bylaws, and plats
20    of survey, and all amendments of these;
21        (2) the rules and regulations of the association, if
22    any;
23        (3) if the association is incorporated as a
24    corporation, the articles of incorporation of the

 

 

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1    association and all amendments to the articles of
2    incorporation;
3        (4) minutes of all meetings of the association and its
4    board of managers for the immediately preceding 7 years;
5        (5) all current policies of insurance of the
6    association;
7        (6) all contracts, leases, and other agreements then in
8    effect to which the association is a party or under which
9    the association or the unit owners have obligations or
10    liabilities;
11        (7) a current listing of the names, addresses, email
12    addresses, telephone numbers, and weighted vote of all
13    members entitled to vote;
14        (8) ballots and proxies related to ballots for all
15    matters voted on by the members of the association during
16    the immediately preceding 12 months, including but not
17    limited to the election of members of the board of
18    managers; and
19        (9) the books and records of account for the
20    association's current and 10 immediately preceding fiscal
21    years, including but not limited to itemized and detailed
22    records of all receipts, and expenditures, and accounts.
23    (b) Any member of an association shall have the right to
24inspect, examine, and make copies of the records described in
25subdivisions (1), (2), (3), (4), and (5), (6), and (9) of
26subsection (a) of this Section, in person or by agent, at any

 

 

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1reasonable time or times, at the association's principal
2office. In order to exercise this right, a member must submit a
3written request to the association's board of managers or its
4authorized agent, stating with particularity the records
5sought to be examined. Failure of an association's board of
6managers to make available all records so requested within 10
7business 30 days of receipt of the member's written request
8shall be deemed a denial.
9    Any member who prevails in an enforcement action to compel
10examination of records described in subdivisions (1), (2), (3),
11(4), and (5), (6), and (9) of subsection (a) of this Section
12shall be entitled to recover reasonable attorney's fees and
13costs from the association.
14    (c) (Blank).
15    (d) (Blank).
16    (d-5) As used in this Section, "commercial purpose" means
17the use of any part of a record or records described in
18subdivisions (7) and (8) of subsection (a) of this Section, or
19information derived from such records, in any form for sale,
20resale, or solicitation or advertisement for sales or services.
21    (e) Except as otherwise provided in subsection (g) of this
22Section, any member of an association shall have the right to
23inspect, examine, and make copies of the records described in
24subdivisions (7) and (8) (6), (7), (8), and (9) of subsection
25(a) of this Section, in person or by agent, at any reasonable
26time or times but only for a proper purpose that relates to the

 

 

10000HB0189ham003- 46 -LRB100 03859 KTG 25183 a

1association, at the association's principal office. In order to
2exercise this right, a member must submit a written request, to
3the association's board of managers or its authorized agent,
4stating with particularity the records sought to be examined.
5As a condition for exercising this right, the board of managers
6or authorized agent of the association may require the member
7to certify in writing that the information contained in the
8records obtained by the member will not be used by the member
9for any commercial purpose or for any purpose that does not
10relate to the association. The board of managers of the
11association may impose a fine in accordance with item (l) of
12Section 18.4 upon any person who makes a false certification.
13and a proper purpose for the request. Subject to the provisions
14of subsection (g) of this Section, failure of an association's
15board of managers to make available all records so requested
16within 10 business 30 business days of receipt of the member's
17written request shall be deemed a denial; provided, however,
18that the board of managers of an association that has adopted a
19secret ballot election process as provided in Section 18 of
20this Act shall not be deemed to have denied a member's request
21for records described in subdivision (8) of subsection (a) of
22this Section if voting ballots, without identifying unit
23numbers, are made available to the requesting member within 10
24business 30 days of receipt of the member's written request.
25    In an action to compel examination of records described in
26subdivisions (6), (7), (8), and (9) of subsection (a) of this

 

 

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1Section, the burden of proof is upon the member to establish
2that the member's request is based on a proper purpose. Any
3member who prevails in an enforcement action to compel
4examination of records described in subdivisions (7) or (8)
5(6), (7), (8), and (9) of subsection (a) of this Section shall
6be entitled to recover reasonable attorney's fees and costs
7from the association only if the court finds that the board of
8directors acted in bad faith in denying the member's request.
9    (f) The actual cost to the association of retrieving and
10making requested records available for inspection and
11examination under this Section may shall be charged by the
12association to the requesting member. If a member requests
13copies of records requested under this Section, the actual
14costs to the association of reproducing the records may shall
15also be charged by the association to the requesting member.
16    (g) Notwithstanding the provisions of subsection (e) of
17this Section, unless otherwise directed by court order, an
18association need not make the following records available for
19inspection, examination, or copying by its members:
20        (1) documents relating to appointment, employment,
21    discipline, or dismissal of association employees;
22        (2) documents relating to actions pending against or on
23    behalf of the association or its board of managers in a
24    court or administrative tribunal;
25        (3) documents relating to actions threatened against,
26    or likely to be asserted on behalf of, the association or

 

 

10000HB0189ham003- 48 -LRB100 03859 KTG 25183 a

1    its board of managers in a court or administrative
2    tribunal;
3        (4) documents relating to common expenses or other
4    charges owed by a member other than the requesting member;
5    and
6        (5) documents provided to an association in connection
7    with the lease, sale, or other transfer of a unit by a
8    member other than the requesting member.
9    (h) The provisions of this Section are applicable to all
10condominium instruments recorded under this Act. Any portion of
11a condominium instrument that contains provisions contrary to
12these provisions shall be void as against public policy and
13ineffective. Any condominium instrument that fails to contain
14the provisions required by this Section shall be deemed to
15incorporate the provisions by operation of law.
16(Source: P.A. 90-496, eff. 8-18-97; 90-655, eff. 7-30-98.)
 
17    (765 ILCS 605/27)  (from Ch. 30, par. 327)
18    Sec. 27. Amendments.
19    (a) If there is any unit owner other than the developer,
20and unless otherwise provided in this Act, the condominium
21instruments shall be amended only as follows:
22        (i) upon the affirmative vote of 2/3 of those voting or
23    upon the majority specified by the condominium
24    instruments, provided that in no event shall the
25    condominium instruments require more than a three-quarters

 

 

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1    vote of all unit owners; and
2        (ii) with the approval of, or notice to, any mortgagees
3    or other lienholders of record, if required under the
4    provisions of the condominium instruments. If the
5    condominium instruments require approval of any mortgagee
6    or lienholder of record and the mortgagee or lienholder of
7    record receives a request to approve or consent to the
8    amendment to the condominium instruments, the mortgagee or
9    lienholder of record is deemed to have approved or
10    consented to the request unless the mortgagee or lienholder
11    of record delivers a negative response to the requesting
12    party within 60 days after the mailing of the request. A
13    request to approve or consent to an amendment to the
14    condominium instruments that is required to be sent to a
15    mortgagee or lienholder of record shall be sent by
16    certified mail.
17    (b)(1) If there is an omission, error, or inconsistency in
18a condominium instrument, such that a provision of a
19condominium instrument does not conform to this Act or to
20another applicable statute, the association may correct the
21omission, error, or inconsistency to conform the condominium
22instrument to this Act or to another applicable statute by an
23amendment adopted by vote of two-thirds of the Board of
24Managers, without a unit owner vote. A provision in a
25condominium instrument requiring or allowing unit owners,
26mortgagees, or other lienholders of record to vote to approve

 

 

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1an amendment to a condominium instrument, or for the mortgagees
2or other lienholders of record to be given notice of an
3amendment to a condominium instrument, is not applicable to an
4amendment to the extent that the amendment corrects an
5omission, error, or inconsistency to conform the condominium
6instrument to this Act or to another applicable statute.
7    (2) If through a scrivener's error, a unit has not been
8designated as owning an appropriate undivided share of the
9common elements or does not bear an appropriate share of the
10common expenses or that all the common expenses or all of the
11common elements in the condominium have not been distributed in
12the declaration, so that the sum total of the shares of common
13elements which have been distributed or the sum total of the
14shares of the common expenses fail to equal 100%, or if it
15appears that more than 100% of the common elements or common
16expenses have been distributed, the error may be corrected by
17operation of law by filing an amendment to the declaration
18approved by vote of two-thirds of the members of the Board of
19Managers or a majority vote of the unit owners at a meeting
20called for this purpose which proportionately adjusts all
21percentage interests so that the total is equal to 100% unless
22the condominium instruments specifically provide for a
23different procedure or different percentage vote by the owners
24of the units and the owners of mortgages thereon affected by
25modification being made in the undivided interest in the common
26elements, the number of votes in the unit owners association or

 

 

10000HB0189ham003- 51 -LRB100 03859 KTG 25183 a

1the liability for common expenses appertaining to the unit.
2    (3) If an omission or error or a scrivener's error in the
3declaration, bylaws or other condominium instrument is
4corrected by vote of two-thirds of the members of the Board of
5Managers pursuant to the authority established in paragraphs
6(1) or (2) of this subsection (b) subsections (b)(1) or (b)(2)
7of Section 27 of this Act, the Board upon written petition by
8unit owners with 20 percent of the votes of the association
9filed within 30 days of the Board action shall call a meeting
10of the unit owners within 30 days of the filing of the petition
11to consider the Board action. Unless a majority of the votes of
12the unit owners of the association are cast at the meeting to
13reject the action, it is ratified whether or not a quorum is
14present.
15    (4) The procedures for amendments set forth in this
16subsection (b) cannot be used if such an amendment would
17materially or adversely affect property rights of the unit
18owners unless the affected unit owners consent in writing. This
19Section does not restrict the powers of the association to
20otherwise amend the declaration, bylaws, or other condominium
21instruments, but authorizes a simple process of amendment
22requiring a lesser vote for the purpose of correcting defects,
23errors, or omissions when the property rights of the unit
24owners are not materially or adversely affected.
25    (5) If there is an omission or error in the declaration,
26bylaws, or other condominium instruments, which may not be

 

 

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1corrected by an amendment procedure set forth in paragraphs (1)
2and (2) of this subsection (b) of Section 27 in the declaration
3then the Circuit Court in the County in which the condominium
4is located shall have jurisdiction to hear a petition of one or
5more of the unit owners thereon or of the association, to
6correct the error or omission, and the action may be a class
7action. The court may require that one or more methods of
8correcting the error or omission be submitted to the unit
9owners to determine the most acceptable correction. All unit
10owners in the association must be joined as parties to the
11action. Service of process on owners may be by publication, but
12the plaintiff shall furnish all unit owners not personally
13served with process with copies of the petition and final
14judgment of the court by certified mail return receipt
15requested, at their last known address.
16    (6) Nothing contained in this Section shall be construed to
17invalidate any provision of a condominium instrument
18authorizing the developer to amend a condominium instrument
19prior to the latest date on which the initial membership
20meeting of the unit owners must be held, whether or not nor it
21has actually been held, to bring the instrument into compliance
22with the legal requirements of the Federal National Mortgage
23Association, the Federal Home Loan Mortgage Corporation, the
24Federal Housing Administration, the United States Veterans
25Administration or their respective successors and assigns.
26(Source: P.A. 98-282, eff. 1-1-14; 99-472, eff. 6-1-16; revised

 

 

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19-1-16.)
 
2    (765 ILCS 605/31)  (from Ch. 30, par. 331)
3    Sec. 31. Subdivision or combination of units.
4    (a) As used in this Section, "combination of any units"
5means any 2 or more residential units to be used as a single
6unit as shown on the plat or amended plat, which may involve,
7without limitation, additional exclusive use of a portion of
8the common elements within the building adjacent to the
9combined unit (for example, without limitation, the use of a
10portion of an adjacent common hallway).
11    (b) Unless the condominium instruments expressly prohibit
12the subdivision or combination of any units, and subject to
13additional limitations provided by the condominium
14instruments, the owner or owners may, at their own expense,
15subdivide or combine and locate or relocate common elements
16affected or required thereby, in accordance with the provisions
17of the condominium instruments and the requirements of this
18Act. The owner or owners shall make written application to the
19board of managers, requesting an amendment to the condominium
20instruments, setting forth in the application a proposed
21reallocation to the new units of the percentage interest in the
22common elements, and setting forth whether the limited common
23elements, if any, previously assigned to the unit to be
24subdivided should be assigned to each new unit or to fewer than
25all of the new units created and requesting, if desired in the

 

 

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1event of a combination of any units, that the new unit be
2granted the exclusive right to use as a limited common element,
3a portion of the common elements within the building adjacent
4to the new unit. If the transaction is approved by a majority
5of the board of managers, it shall be effective upon (1)
6recording of an amendment to condominium instruments in
7accordance with the provisions of Sections 5 and 6 of this Act,
8and (2) execution by the owners of the units involved.
9    (c) In the event of a combination of any units, the
10amendment under subsection (b) may grant the owner of the
11combined unit the exclusive right to use, as a limited common
12element, a portion of the common elements within the building
13adjacent to the new unit. The request for the amendment shall
14be granted and the amendment shall grant this exclusive right
15to use as a limited common element if the following conditions
16are met:
17        (1) the common element for which the exclusive right to
18    use as a limited common element is sought is not necessary
19    or practical for use by the owners of any units other than
20    the owner or owners of the combined unit; and
21        (2) the owner or owners of the combined unit are
22    responsible for any and all costs associated with the
23    renovation, modification, or other adaptation performed as
24    a result of the granting of the exclusive right to use as a
25    limited common element.
26    (d) If the combined unit is divided, part of the original

 

 

10000HB0189ham003- 55 -LRB100 03859 KTG 25183 a

1combined unit is sold, and the grant of the exclusive right to
2use as a limited common element is no longer necessary,
3practical, or appropriate for the use and enjoyment of the
4owner or owners of the original combined unit, the board may
5terminate the grant of the exclusive right to use as a limited
6common element and require that the owner or owners of the
7original combined unit restore the common area to its condition
8prior to the grant of the exclusive right to use as a limited
9common element. If the combined unit is sold without being
10divided, the grant of the exclusive right to use as a limited
11common element shall apply to the new owner or owners of the
12combined unit, who shall assume the rights and responsibilities
13of the original owner or owners.
14    (e) Under this Section, the exclusive right to use as a
15limited common element any portion of the common elements that
16is not necessary or practical for use by the owners of any
17other units is not a diminution of the ownership interests of
18all other unit owners requiring unanimous consent of all unit
19owners under subsection (e) of Section 4 of this Act or any
20percentage set forth in the condominium instruments.
21    (f) Notwithstanding Section 27 of this Act and any other
22amendment provisions set forth in the condominium instruments,
23an amendment pursuant to this Section is effective if it meets
24the requirements set forth in this Section.
25(Source: P.A. 90-199, eff. 7-24-97.)".