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Public Act 095-0318


 

Public Act 0318 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0318
 
HB1071 Enrolled LRB095 07052 AJO 27176 b

    AN ACT concerning property.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Condominium Property Act is amended by
adding Section 18.7 as follows:
 
    (765 ILCS 605/18.7 new)
    Sec. 18.7. Standards for community association managers.
    (a) "Community association" means an association in which
membership is a condition of ownership or shareholder interest
of a unit in a condominium, cooperative, townhouse, villa, or
other residential unit that is part of a residential
development plan as a master association or common interest
community and that is authorized to impose an assessment and
other costs that may become a lien on the unit or lot.
    (b) "Community association manager" means an individual
who administers for compensation the coordination of
financial, administrative, maintenance, or other duties called
for in the management contract, including individuals who are
direct employees of a community association. A manager does not
include support staff, such as bookkeepers, administrative
assistants, secretaries, property inspectors, or customer
service representatives.
    (c) Requirements. To perform services as a community
association manager, an individual must meet these
requirements:
        (1) shall have attained the age of 21 and be a citizen
    or legal permanent resident of the United States;
        (2) shall not have been convicted of forgery,
    embezzlement, obtaining money under false pretenses,
    larceny, extortion, conspiracy to defraud or other similar
    offense or offenses;
        (3) shall have a working knowledge of the fundamentals
    of community association management, including the
    Condominium Property Act, the Illinois Not-for-Profit
    Corporation Act, and any other laws pertaining to community
    association management; and
        (4) shall not have engaged in the following activities:
    failure to cooperate with any law enforcement agency in the
    investigation of a complaint; or failure to produce any
    document, book, or record in the possession or control of
    the community association manager after a request for
    production of that document, book, or record in the course
    of an investigation of a complaint.
    (d) Access to community association funds. For community
associations of 6 or more units, apartments, townhomes, villas
or other residential units, a community association manager or
the firm with whom the manager is employed shall not solely and
exclusively have access to and disburse funds of a community
association unless:
        (1) There is a fidelity bond in place.
        (2) The fidelity bond is in an amount not less than all
    monies of that association in the custody or control of the
    community association manager.
        (3) The fidelity bond covers the community association
    manager and all partners, officers, and employees of the
    firm with whom the community association manager is
    employed during the term of the bond, as well as the
    community association officers, directors, and employees
    of the community association who control or disburse funds.
        (4) The insurance company issuing the bond may not
    cancel or refuse to renew the bond without giving not less
    than 10 days' prior written notice to the community
    association.
        (5) The community association shall secure and pay for
    the bond.
    (e) A community association manager who provides community
association management services for more than one community
association shall maintain separate, segregated accounts for
each community association. The funds shall not, in any event,
be commingled with funds of the community association manager,
the firm of the community association manager, or any other
community association. The maintenance of these accounts shall
be custodial, and the accounts shall be in the name of the
respective community association.
    (f) Exempt persons. Except as otherwise provided, this
Section does not apply to any person acting as a receiver,
trustee in bankruptcy, administrator, executor, or guardian
acting under a court order or under the authority of a will or
of a trust instrument.
    (g) Right of Action.
        (1) Nothing in this amendatory Act of the 95th General
    Assembly shall create a cause of action by a unit owner,
    shareholder, or community association member against a
    community association manager or the firm of a community
    association manager.
        (2) This amendatory Act of the 95th General Assembly
    shall not impair any right of action by a unit owner or
    shareholder against a community association board of
    directors under existing law.

Effective Date: 1/1/2008