Public Act 097-1090
 
SB3572 EnrolledLRB097 18505 AJO 63736 b

    AN ACT concerning civil law.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Common Interest Community Association Act is
amended by changing Sections 1-5, 1-15, 1-20, 1-25, 1-30, 1-35,
1-40, 1-45, 1-50, 1-60, and 1-75 as follows:
 
    (765 ILCS 160/1-5)
    Sec. 1-5. Definitions. As used in this Act, unless the
context otherwise requires:
    "Association" or "common interest community association"
means the association of all the members unit owners of a
common interest community, acting pursuant to bylaws through
its duly elected board of managers or board of directors.
    "Board" means a common interest community association's
board of managers or board of directors, whichever is
applicable.
    "Board member" or "member of the board" means a member of
the board of managers or the board of directors, whichever is
applicable.
    "Board of directors" means, for a common interest community
that has been incorporated as an Illinois not-for-profit
corporation, the group of people elected by the members unit
owners of a common interest community as the governing body to
exercise for the members unit owners of the common interest
community association all powers, duties, and authority vested
in the board of directors under this Act and the common
interest community association's declaration and bylaws.
    "Board of managers" means, for a common interest community
that is an unincorporated association, the group of people
elected by the members unit owners of a common interest
community as the governing body to exercise for the members
unit owners of the common interest community association all
powers, duties, and authority vested in the board of managers
under this Act and the common interest community association's
declaration and bylaws.
    "Building" means all structures, attached or unattached,
containing one or more units.
    "Common areas" means the portion of the property other than
a unit.
    "Common expenses" means the proposed or actual expenses
affecting the property, including reserves, if any, lawfully
assessed by the common interest community association.
    "Common interest community" means real estate other than a
condominium or cooperative with respect to which any person by
virtue of his or her ownership of a partial interest or a unit
therein is obligated to pay for the maintenance, improvement,
insurance premiums or real estate taxes of common areas
described in a declaration which is administered by an
association. "Common interest community" may include, but not
be limited to, an attached or detached townhome, villa, or
single-family home. A "common interest community" does not
include a master association.
    "Community instruments" means all documents and authorized
amendments thereto recorded by a developer or common interest
community association, including, but not limited to, the
declaration, bylaws, plat of survey, and rules and regulations.
    "Declaration" means any duly recorded instruments, however
designated, that have created a common interest community and
any duly recorded amendments to those instruments.
    "Developer" means any person who submits property legally
or equitably owned in fee simple by the person to the
provisions of this Act, or any person who offers units legally
or equitably owned in fee simple by the person for sale in the
ordinary course of such person's business, including any
successor to such person's entire interest in the property
other than the purchaser of an individual unit.
    "Developer control" means such control at a time prior to
the election of the board of the common interest community
association by a majority of the members unit owners other than
the developer.
    "Majority" or "majority of the members unit owners" means
the owners of more than 50% in the aggregate in interest of the
undivided ownership of the common elements. Any specified
percentage of the members unit owners means such percentage in
the aggregate in interest of such undivided ownership.
"Majority" or "majority of the members of the board of the
common interest community association" means more than 50% of
the total number of persons constituting such board pursuant to
the bylaws. Any specified percentage of the members of the
common interest community association means that percentage of
the total number of persons constituting such board pursuant to
the bylaws.
    "Management company" or "community association manager"
means a person, partnership, corporation, or other legal entity
entitled to transact business on behalf of others, acting on
behalf of or as an agent for an association for the purpose of
carrying out the duties, responsibilities, and other
obligations necessary for the day to day operation and
management of any property subject to this Act.
    "Meeting of the board" or "board meeting" means any
gathering of a quorum of the members of the board of the common
interest community association held for the purpose of
conducting board business.
    "Member" means the person or entity designated as an owner
and entitled to one vote as defined by the community
instruments. The terms "member" and "unit owner" may be used
interchangeably as defined by the community instruments,
except in situations in which a matter of legal title to the
unit is involved or at issue, in which case the term "unit
owner" would be the applicable term used.
    "Membership" means the collective group of members
entitled to vote as defined by the community instruments.
    "Parcel" means the lot or lots or tract or tracts of land
described in the declaration as part of a common interest
community.
    "Person" means a natural individual, corporation,
partnership, trustee, or other legal entity capable of holding
title to real property.
    "Plat" means a plat or plats of survey of the parcel and of
all units in the common interest community, which may consist
of a three-dimensional horizontal and vertical delineation of
all such units, structures, easements, and common areas on the
property.
    "Prescribed delivery method" means mailing, delivering,
posting in an association publication that is routinely mailed
to all members unit owners, or any other delivery method that
is approved in writing by the member unit owner and authorized
by the community instruments.
    "Property" means all the land, property, and space
comprising the parcel, all improvements and structures
erected, constructed or contained therein or thereon,
including any building and all easements, rights, and
appurtenances belonging thereto, and all fixtures and
equipment intended for the mutual use, benefit, or enjoyment of
the members unit owners, under the authority or control of a
common interest community association.
    "Purchaser" means any person or persons, other than the
developer, who purchase a unit in a bona fide transaction for
value.
    "Record" means to record in the office of the recorder of
the county wherein the property is located.
    "Reserves" means those sums paid by members unit owners
which are separately maintained by the common interest
community association for purposes specified by the
declaration and bylaws of the common interest community
association.
    "Unit" means a part of the property designed and intended
for any type of independent use.
    "Unit owner" means the person or persons whose estates or
interests, individually or collectively, aggregate fee simple
absolute ownership of a unit.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    (765 ILCS 160/1-15)
    Sec. 1-15. Construction, interpretation, and validity of
community instruments.
    (a) Except to the extent otherwise provided by the
declaration or other community instruments, the terms defined
in Section 1-5 of this Act shall be deemed to have the meaning
specified therein unless the context otherwise requires.
    (b) All provisions of the declaration, bylaws, and other
community instruments severed by this Act shall be revised by
the board of directors independent of the membership to comply
with this Act are severable.
    (c) A provision in the declaration limiting ownership,
rental, or occupancy of a unit to a person 55 years of age or
older shall be valid and deemed not to be in violation of
Article 3 of the Illinois Human Rights Act provided that the
person or the immediate family of a person owning, renting, or
lawfully occupying such unit prior to the recording of the
initial declaration shall not be deemed to be in violation of
such age restriction so long as they continue to own or reside
in such unit.
    (d) Every common interest community association shall
define a member and its relationship to the units or unit
owners in its community instruments.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    (765 ILCS 160/1-20)
    Sec. 1-20. Amendments to the declaration or bylaws.
    (a) The administration of every property shall be governed
by the declaration and bylaws, which may either be embodied in
the declaration or in a separate instrument, a true copy of
which shall be appended to and recorded with the declaration.
No modification or amendment of the declaration or bylaws shall
be valid unless the same is set forth in an amendment thereof
and such amendment is duly recorded. An amendment of the
declaration or bylaws shall be deemed effective upon
recordation, unless the amendment sets forth a different
effective date.
    (b) Unless otherwise provided by this Act, amendments to
community instruments authorized to be recorded shall be
executed and recorded by the president of the board or such
other officer authorized by the common interest community
association or the community instruments.
    (c) If an association that currently permits leasing amends
its declaration, bylaws, or rules and regulations to prohibit
leasing, nothing in this Act or the declarations, bylaws, rules
and regulations of an association shall prohibit a unit owner
incorporated under 26 USC 501(c)(3) which is leasing a unit at
the time of the prohibition from continuing to do so until such
time that the unit owner voluntarily sells the unit; and no
special fine, fee, dues, or penalty shall be assessed against
the unit owner for leasing its unit.
    (d) No action to incorporate a common interest community as
a municipality shall commence until an instrument agreeing to
incorporation has been signed by two-thirds of the members.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    (765 ILCS 160/1-25)
    Sec. 1-25. Board of managers, board of directors, duties,
elections, and voting.
    (a) Elections shall be held in accordance with the
community instruments, provided that an election shall be held
no less frequently than once every 24 months, for There shall
be an annual election of the board of managers or board of
directors from among the membership of a common interest
community association.
    (b) (Blank).
    (c) The members of the board shall serve without
compensation, unless the community instruments indicate
otherwise.
    (d) No member of the board or officer shall be elected for
a term of more than 4 3 years, but officers and board members
may succeed themselves.
    (e) If there is a vacancy on the board, the remaining
members of the board may fill the vacancy by a two-thirds vote
of the remaining board members until the next annual meeting of
the membership or until members holding 20% of the votes of the
association request a meeting of the members to fill the
vacancy for the balance of the term. A meeting of the members
shall be called for purposes of filling a vacancy on the board
no later than 30 days following the filing of a petition signed
by membership holding 20% of the votes of the association
requesting such a meeting.
    (f) There shall be an election of a:
        (1) president from among the members of the board, who
    shall preside over the meetings of the board and of the
    membership;
        (2) secretary from among the members of the board, who
    shall keep the minutes of all meetings of the board and of
    the membership and who shall, in general, perform all the
    duties incident to the office of secretary; and
        (3) treasurer from among the members of the board, who
    shall keep the financial records and books of account.
    (g) If no election is held to elect board members within
the time period specified in the bylaws, or within a reasonable
amount of time thereafter not to exceed 90 days, then 20% of
the members may bring an action to compel compliance with the
election requirements specified in the bylaws. If the court
finds that an election was not held to elect members of the
board within the required period due to the bad faith acts or
omissions of the board of managers or the board of directors,
the members unit owners shall be entitled to recover their
reasonable attorney's fees and costs from the association. If
the relevant notice requirements have been met and an election
is not held solely due to a lack of a quorum, then this
subsection (g) does not apply.
    (h) Where there is more than one owner of a unit and there
is only one member vote associated with that unit, if only one
of the multiple owners is present at a meeting of the
membership, he or she is entitled to cast the member vote
associated with that unit.
    (h-5) A member may vote:
        (1) by proxy executed in writing by the member or by
    his or her duly authorized attorney in fact, provided,
    however, that the proxy bears the date of execution. Unless
    the community instruments or the written proxy itself
    provide otherwise, proxies will not be valid for more than
    11 months after the date of its execution; or
        (2) by submitting an association-issued ballot in
    person at the election meeting; or
        (3) by submitting an association-issued ballot to the
    association or its designated agent by mail or other means
    of delivery specified in the declaration or bylaws.
    (i) The association may, upon adoption of the appropriate
rules by the board, conduct elections by secret ballot,
distributed by the association, whereby the voting ballot is
marked only with the voting interest for the member and the
vote itself, provided that the association shall further adopt
rules to verify the status of the member issuing a proxy or
casting a ballot and provided further that proxies shall not be
allowed. A candidate for election to the board or such
candidate's representative shall have the right to be present
at the counting of ballots at such election.
    (j) Upon proof of purchase, the purchaser of a unit from a
seller other than the developer pursuant to an installment
contract for purchase shall, during such times as he or she
resides in the unit, be counted toward a quorum for purposes of
election of members of the board at any meeting of the
membership called for purposes of electing members of the
board, shall have the right to vote for the members of the
board of the common interest community association and to be
elected to and serve on the board unless the seller expressly
retains in writing any or all of such rights.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    (765 ILCS 160/1-30)
    Sec. 1-30. Board duties and obligations; records.
    (a) The board shall meet at least 4 times annually.
    (b) A member of the board of the common interest community
association may not enter into a contract with a current board
member, or with a corporation or partnership in which a board
member or a member of his or her immediate family has 25% or
more interest, unless notice of intent to enter into the
contract is given to members unit owners within 20 days after a
decision is made to enter into the contract and the members
unit owners are afforded an opportunity by filing a petition,
signed by 20% of the membership, for an election to approve or
disapprove the contract; such petition shall be filed within 20
days after such notice and such election shall be held within
30 days after filing the petition. For purposes of this
subsection, a board member's immediate family means the board
member's spouse, parents, and children.
    (c) The bylaws shall provide for the maintenance, repair,
and replacement of the common areas and payments therefor,
including the method of approving payment vouchers.
    (d) (Blank).
    (e) The association may engage the services of a manager or
management company.
    (f) The association shall have one class of membership
unless the declaration or bylaws provide otherwise; however,
this subsection (f) shall not be construed to limit the
operation of subsection (c) of Section 1-20 of this Act.
    (g) The board shall have the power, after notice and an
opportunity to be heard, to levy and collect reasonable fines
from members or unit owners for violations of the declaration,
bylaws, and rules and regulations of the common interest
community association.
    (h) Other than attorney's fees and court or arbitration
costs, no fees pertaining to the collection of a member's or
unit owner's financial obligation to the association,
including fees charged by a manager or managing agent, shall be
added to and deemed a part of a member's or unit owner's
respective share of the common expenses unless: (i) the
managing agent fees relate to the costs to collect common
expenses for the association; (ii) the fees are set forth in a
contract between the managing agent and the association; and
(iii) the authority to add the management fees to a member's or
unit owner's respective share of the common expenses is
specifically stated in the declaration or bylaws of the
association.
    (i) Board records.
        (1) The board shall maintain the following records of
    the association and make them available for examination and
    copying at convenient hours of weekdays by any member or
    unit owner in a common interest community subject to the
    authority of the board, their mortgagees, and their duly
    authorized agents or attorneys:
            (i) Copies of the recorded declaration, other
        community instruments, other duly recorded covenants
        and bylaws and any amendments, articles of
        incorporation, annual reports, and any rules and
        regulations adopted by the board shall be available.
        Prior to the organization of the board, the developer
        shall maintain and make available the records set forth
        in this paragraph (i) for examination and copying.
            (ii) Detailed and accurate records in
        chronological order of the receipts and expenditures
        affecting the common areas, specifying and itemizing
        the maintenance and repair expenses of the common areas
        and any other expenses incurred, and copies of all
        contracts, leases, or other agreements entered into by
        the board shall be maintained.
            (iii) The minutes of all meetings of the board
        which shall be maintained for not less than 7 years.
            (iv) With a written statement of a proper purpose,
        ballots and proxies related thereto, if any, for any
        election held for the board and for any other matters
        voted on by the members unit owners, which shall be
        maintained for not less than one year.
            (v) With a written statement of a proper purpose,
        such other records of the board as are available for
        inspection by members of a not-for-profit corporation
        pursuant to Section 107.75 of the General Not For
        Profit Corporation Act of 1986 shall be maintained.
            (vi) With respect to units owned by a land trust, a
        living trust, or other legal entity, the trustee,
        officer, or manager of the entity may designate, in
        writing, a person to cast votes on behalf of the member
        or unit owner and a designation shall remain in effect
        until a subsequent document is filed with the
        association.
        (2) Where a request for records under this subsection
    is made in writing to the board or its agent, failure to
    provide the requested record or to respond within 30 days
    shall be deemed a denial by the board.
        (3) A reasonable fee may be charged by the board for
    the cost of retrieving and copying records properly
    requested.
        (4) If the board fails to provide records properly
    requested under paragraph (1) of this subsection (i) within
    the time period provided in that paragraph (1), the member
    unit owner may seek appropriate relief and shall be
    entitled to an award of reasonable attorney's fees and
    costs if the member unit owner prevails and the court finds
    that such failure is due to the acts or omissions of the
    board of managers or the board of directors.
    (j) The board shall have standing and capacity to act in a
representative capacity in relation to matters involving the
common areas or more than one unit, on behalf of the members or
unit owners as their interests may appear.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    (765 ILCS 160/1-35)
    Sec. 1-35. Member Unit owner powers, duties, and
obligations.
    (a) The provisions of this Act, the declaration, bylaws,
other community instruments, and rules and regulations that
relate to the use of an individual unit or the common areas
shall be applicable to any person leasing a unit and shall be
deemed to be incorporated in any lease executed or renewed on
or after the effective date of this Act. With regard to any
lease entered into subsequent to the effective date of this
Act, the unit owner leasing the unit shall deliver a copy of
the signed lease to the association or if the lease is oral, a
memorandum of the lease, not later than the date of occupancy
or 10 days after the lease is signed, whichever occurs first.
    (b) If there are multiple owners of a single unit, only one
of the multiple owners shall be eligible to serve as a member
of the board at any one time, unless the unit owner owns
another unit independently.
    (c) Two-thirds of the membership may remove a board member
as a director at a duly called special meeting.
    (d) In the event of any resale of a unit in a common
interest community association by a member or unit owner other
than the developer, the board shall make available for
inspection to the prospective purchaser, upon demand, the
following:
        (1) A copy of the declaration, other instruments, and
    any rules and regulations.
        (2) A statement of any liens, including a statement of
    the account of the unit setting forth the amounts of unpaid
    assessments and other charges due and owing.
        (3) A statement of any capital expenditures
    anticipated by the association within the current or
    succeeding 2 fiscal years.
        (4) A statement of the status and amount of any reserve
    or replacement fund and any other fund specifically
    designated for association projects.
        (5) A copy of the statement of financial condition of
    the association for the last fiscal year for which such a
    statement is available.
        (6) A statement of the status of any pending suits or
    judgments in which the association is a party.
        (7) A statement setting forth what insurance coverage
    is provided for all members or unit owners by the
    association for common properties.
    The principal officer of the board or such other officer as
is specifically designated shall furnish the above information
within 30 days after receiving a written request for such
information.
    A reasonable fee covering the direct out-of-pocket cost of
copying and providing such information may be charged by the
association or the board to the unit seller for providing the
information.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    (765 ILCS 160/1-40)
    Sec. 1-40. Meetings.
    (a) Notice of any membership meeting shall be given
detailing the time, place, and purpose of such meeting no less
than 10 and no more than 30 days prior to the meeting through a
prescribed delivery method.
    (b) Meetings.
        (1) Twenty percent of the membership shall constitute a
    quorum, unless the community instruments indicate a lesser
    amount.
        (2) The membership shall hold an annual meeting. The
    board of directors may be elected at the annual meeting.
        (3) Special meetings of the board may be called by the
    president, by 25% of the members of the board, or by any
    other method that is prescribed in the community
    instruments. Special meetings of the membership may be
    called by the president, the board, 20% of the membership,
    or any other method that is prescribed in the community
    instruments.
        (4) Except to the extent otherwise provided by this
    Act, the board shall give the members unit owners notice of
    all board meetings at least 48 hours prior to the meeting
    by sending notice by using a prescribed delivery method or
    by posting copies of notices of meetings in entranceways,
    elevators, or other conspicuous places in the common areas
    of the common interest community at least 48 hours prior to
    the meeting except where there is no common entranceway for
    7 or more units, the board may designate one or more
    locations in the proximity of these units where the notices
    of meetings shall be posted. The board shall give members
    unit owners notice of any board meeting, through a
    prescribed delivery method, concerning the adoption of (i)
    the proposed annual budget, (ii) regular assessments, or
    (iii) a separate or special assessment within 10 to 60 days
    prior to the meeting, unless otherwise provided in Section
    1-45 (a) or any other provision of this Act.
        (5) Meetings of the board shall be open to any unit
    owner, except for the portion of any meeting held (i) to
    discuss litigation when an action against or on behalf of
    the particular association has been filed and is pending in
    a court or administrative tribunal, or when the common
    interest community association finds that such an action is
    probable or imminent, (ii) to consider third party
    contracts or information regarding appointment,
    employment, or dismissal of an employee, or (iii) to
    discuss violations of rules and regulations of the
    association or a member's or unit owner's unpaid share of
    common expenses. Any vote on these matters shall be taken
    at a meeting or portion thereof open to any member unit
    owner.
        (6) The board must reserve a portion of the meeting of
    the board for comments by members unit owners; provided,
    however, the duration and meeting order for the member unit
    owner comment period is within the sole discretion of the
    board.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    (765 ILCS 160/1-45)
    Sec. 1-45. Finances.
    (a) Each member unit owner shall receive through a
prescribed delivery method, at least 30 days but not more than
60 days prior to the adoption thereof by the board, a copy of
the proposed annual budget together with an indication of which
portions are intended for reserves, capital expenditures or
repairs or payment of real estate taxes.
    (b) The board shall provide all members unit owners with a
reasonably detailed summary of the receipts, common expenses,
and reserves for the preceding budget year. The board shall (i)
make available for review to all members unit owners an
itemized accounting of the common expenses for the preceding
year actually incurred or paid, together with an indication of
which portions were for reserves, capital expenditures or
repairs or payment of real estate taxes and with a tabulation
of the amounts collected pursuant to the budget or assessment,
and showing the net excess or deficit of income over
expenditures plus reserves or (ii) provide a consolidated
annual independent audit report of the financial status of all
fund accounts within the association.
    (c) If an adopted budget or any separate assessment adopted
by the board would result in the sum of all regular and
separate assessments payable in the current fiscal year
exceeding 115% of the sum of all regular and separate
assessments payable during the preceding fiscal year, the
common interest community association, upon written petition
by members unit owners with 20% of the votes of the association
delivered to the board within 14 days of the board action,
shall call a meeting of the members unit owners within 30 days
of the date of delivery of the petition to consider the budget
or separate assessment; unless a majority of the total votes of
the members unit owners are cast at the meeting to reject the
budget or separate assessment, it shall be deemed ratified.
    (d) If total common expenses exceed the total amount of the
approved and adopted budget, the common interest community
association shall disclose this variance to all its members and
specifically identify the subsequent assessments needed to
offset this variance in future budgets. Any common expense not
set forth in the budget or any increase in assessments over the
amount adopted in the budget shall be separately assessed
against all unit owners.
    (e) Separate assessments for expenditures relating to
emergencies or mandated by law may be adopted by the board
without being subject to member unit owner approval or the
provisions of subsection (c) or (f) of this Section. As used
herein, "emergency" means a danger to or a compromise of the
structural integrity of the common areas or any of the common
facilities of the common interest community. "Emergency" also
includes a danger to the life, health or safety of the
membership an immediate danger to the structural integrity of
the common areas or to the life, health, safety, or property of
the unit owners.
    (f) Assessments for additions and alterations to the common
areas or to association-owned property not included in the
adopted annual budget, shall be separately assessed and are
subject to approval of a simple majority two-thirds of the
total members at a meeting called for that purpose.
    (g) The board may adopt separate assessments payable over
more than one fiscal year. With respect to multi-year
assessments not governed by subsections (e) and (f) of this
Section, the entire amount of the multi-year assessment shall
be deemed considered and authorized in the first fiscal year in
which the assessment is approved.
    (h) The board of a common interest community association
shall have the authority to establish and maintain a system of
master metering of public utility services to collect payments
in conjunction therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    (765 ILCS 160/1-50)
    Sec. 1-50. Administration of property prior to election of
the initial board of directors.
    (a) Until the election of the initial board whose
declaration is recorded on or after the effective date of this
Act, the same rights, titles, powers, privileges, trusts,
duties, and obligations that are vested in or imposed upon the
board by this Act or in the declaration or other duly recorded
covenant shall be held and performed by the developer.
    (b) The election of the initial board, whose declaration is
recorded on or after the effective date of this Act, shall be
held not later than 60 days after the conveyance by the
developer of 75% of the units, or 3 years after the recording
of the declaration, whichever is earlier. The developer shall
give at least 21 days' notice of the meeting to elect the
initial board of directors and shall upon request provide to
any member unit owner, within 3 working days of the request,
the names, addresses, and weighted vote of each member unit
owner entitled to vote at the meeting. Any member unit owner
shall, upon receipt of the request, be provided with the same
information, within 10 days after the request, with respect to
each subsequent meeting to elect members of the board of
directors.
    (c) If the initial board of a common interest community
association whose declaration is recorded on or after the
effective date of this Act is not elected by the time
established in subsection (b), the developer shall continue in
office for a period of 30 days, whereupon written notice of his
or her resignation shall be sent to all of the unit owners or
members.
    (d) Within 60 days following the election of a majority of
the board, other than the developer, by members unit owners,
the developer shall deliver to the board:
        (1) All original documents as recorded or filed
    pertaining to the property, its administration, and the
    association, such as the declaration, articles of
    incorporation, other instruments, annual reports, minutes,
    rules and regulations, and contracts, leases, or other
    agreements entered into by the association. If any original
    documents are unavailable, a copy may be provided if
    certified by affidavit of the developer, or an officer or
    agent of the developer, as being a complete copy of the
    actual document recorded or filed.
        (2) A detailed accounting by the developer, setting
    forth the source and nature of receipts and expenditures in
    connection with the management, maintenance, and operation
    of the property, copies of all insurance policies, and a
    list of any loans or advances to the association which are
    outstanding.
        (3) Association funds, which shall have been at all
    times segregated from any other moneys of the developer.
        (4) A schedule of all real or personal property,
    equipment, and fixtures belonging to the association,
    including documents transferring the property, warranties,
    if any, for all real and personal property and equipment,
    deeds, title insurance policies, and all tax bills.
        (5) A list of all litigation, administrative action,
    and arbitrations involving the association, any notices of
    governmental bodies involving actions taken or which may be
    taken concerning the association, engineering and
    architectural drawings and specifications as approved by
    any governmental authority, all other documents filed with
    any other governmental authority, all governmental
    certificates, correspondence involving enforcement of any
    association requirements, copies of any documents relating
    to disputes involving members or unit owners, and originals
    of all documents relating to everything listed in this
    paragraph.
        (6) If the developer fails to fully comply with this
    subsection (d) within the 60 days provided and fails to
    fully comply within 10 days after written demand mailed by
    registered or certified mail to his or her last known
    address, the board may bring an action to compel compliance
    with this subsection (d). If the court finds that any of
    the required deliveries were not made within the required
    period, the board shall be entitled to recover its
    reasonable attorney's fees and costs incurred from and
    after the date of expiration of the 10-day demand.
    (e) With respect to any common interest community
association whose declaration is recorded on or after the
effective date of this Act, any contract, lease, or other
agreement made prior to the election of a majority of the board
other than the developer by or on behalf of members unit owners
or underlying common interest community association, the
association or the board, which extends for a period of more
than 2 years from the recording of the declaration, shall be
subject to cancellation by more than one-half of the votes of
the members unit owners, other than the developer, cast at a
special meeting of members called for that purpose during a
period of 90 days prior to the expiration of the 2-year period
if the board is elected by the members unit owners, otherwise
by more than one-half of the underlying common interest
community association board. At least 60 days prior to the
expiration of the 2-year period, the board or, if the board is
still under developer control, the developer shall send notice
to every member unit owner notifying them of this provision, of
what contracts, leases, and other agreements are affected, and
of the procedure for calling a meeting of the members unit
owners or for action by the board for the purpose of acting to
terminate such contracts, leases or other agreements. During
the 90-day period the other party to the contract, lease, or
other agreement shall also have the right of cancellation.
    (f) The statute of limitations for any actions in law or
equity that the board may bring shall not begin to run until
the members unit owners have elected a majority of the members
of the board.
(Source: P.A. 96-1400, eff. 7-29-10.)
 
    (765 ILCS 160/1-60)
    Sec. 1-60. Errors and omissions.
    (a) If there is an omission or error in the declaration or
other instrument of the association, the association may
correct the error or omission by an amendment to the
declaration or other instrument, as may be required to conform
it to this Act, to any other applicable statute, or to the
declaration. The amendment shall be adopted by vote of
two-thirds of the members of the board of directors or by a
majority vote of the members at a meeting called for that
purpose, unless the Act or the declaration of the association
specifically provides for greater percentages or different
procedures.
    (b) If, through a scrivener's error, a unit has not been
designated as owning an appropriate undivided share of the
common areas or does not bear an appropriate share of the
common expenses, or if all of the common expenses or all of the
common elements have not been distributed in the declaration,
so that the sum total of the shares of common areas which have
been distributed or the sum total of the shares of the common
expenses fail to equal 100%, or if it appears that more than
100% of the common elements or common expenses have been
distributed, the error may be corrected by operation of law by
filing an amendment to the declaration, approved by vote of
two-thirds of the members of the board or a majority vote of
the members at a meeting called for that purpose, which
proportionately adjusts all percentage interests so that the
total is equal to 100%, unless the declaration specifically
provides for a different procedure or different percentage vote
by the owners of the units and the owners of mortgages thereon
affected by modification being made in the undivided interest
in the common areas, the number of votes in the association or
the liability for common expenses appertaining to the unit.
    (c) If a scrivener's error in the declaration or other
instrument is corrected by vote of two-thirds of the members of
the board pursuant to the authority established in subsection
(a) or subsection (b), the board, upon written petition by
members with 20% of the votes of the association received
within 30 days of the board action, shall call a meeting of the
members within 30 days of the filing of the petition to
consider the board action. Unless a majority of the votes of
the members of the association are cast at the meeting to
reject the action, it is ratified whether or not a quorum is
present.
    (d) Nothing contained in this Section shall be construed to
invalidate any provision of a declaration authorizing the
developer to amend an instrument prior to the latest date on
which the initial membership meeting of the members unit owners
must be held, whether or not it has actually been held, to
bring the instrument into compliance with the legal
requirements of the Federal National Mortgage Association, the
Federal Home Loan Mortgage Corporation, the Federal Housing
Administration, the United States Department of Veterans
Affairs, or their respective successors and assigns.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    (765 ILCS 160/1-75)
    Sec. 1-75. Exemptions for small common community interest
communities.
    (a) A common interest community association organized
under the General Not for Profit Corporation Act of 1986 and
having either (i) 10 units or less or (ii) annual budgeted
assessments of $100,000 or less shall be exempt from this Act
unless the association affirmatively elects to be covered by
this Act by a majority of its directors or members.
    (b) Common interest community associations which in their
declaration, bylaws, or other governing documents provide that
the association may not use the courts or an arbitration
process to collect or enforce assessments, fines, or similar
levies and common interest community associations (i) of 10
units or less or (ii) having annual budgeted assessments of
$50,000 or less shall be exempt from subsection (a) of Section
1-30, subsections (a) and (b) of Section 1-40, and Section 1-55
but shall be required to provide notice of meetings to members
unit owners in a manner and at a time that will allow members
unit owners to participate in those meetings.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/24/2012