100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3627

 

Introduced , by Rep. Steven A. Andersson

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 160/1-45
765 ILCS 605/18.10 new

    Amends the Common Interest Community Association Act and the Condominium Property Act. Provides that associations that consist of 1,000 or more units shall use generally accepted accounting principles in fulfilling their accounting obligations.


LRB100 10122 HEP 20296 b

 

 

A BILL FOR

 

HB3627LRB100 10122 HEP 20296 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Common Interest Community Association Act is
5amended by changing Section 1-45 as follows:
 
6    (765 ILCS 160/1-45)
7    Sec. 1-45. Finances.
8    (a) Each member shall receive through a prescribed delivery
9method, at least 30 days but not more than 60 days prior to the
10adoption thereof by the board, a copy of the proposed annual
11budget together with an indication of which portions are
12intended for reserves, capital expenditures or repairs or
13payment of real estate taxes.
14    (b) The board shall provide all members with a reasonably
15detailed summary of the receipts, common expenses, and reserves
16for the preceding budget year. The board shall (i) make
17available for review to all members an itemized accounting of
18the common expenses for the preceding year actually incurred or
19paid, together with an indication of which portions were for
20reserves, capital expenditures or repairs or payment of real
21estate taxes and with a tabulation of the amounts collected
22pursuant to the budget or assessment, and showing the net
23excess or deficit of income over expenditures plus reserves or

 

 

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

 

 

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1integrity of the common areas or any of the common facilities
2of the common interest community. "Emergency" also includes a
3danger to the life, health or safety of the membership.
4    (f) Assessments for additions and alterations to the common
5areas or to association-owned property not included in the
6adopted annual budget, shall be separately assessed and are
7subject to approval of a simple majority of the total members
8at a meeting called for that purpose.
9    (g) The board may adopt separate assessments payable over
10more than one fiscal year. With respect to multi-year
11assessments not governed by subsections (e) and (f) of this
12Section, the entire amount of the multi-year assessment shall
13be deemed considered and authorized in the first fiscal year in
14which the assessment is approved.
15    (h) The board of a common interest community association
16shall have the authority to establish and maintain a system of
17master metering of public utility services to collect payments
18in conjunction therewith, subject to the requirements of the
19Tenant Utility Payment Disclosure Act.
20    (i) An association subject to this Act that consists of
211,000 or more units shall use generally accepted accounting
22principles in fulfilling any accounting obligations under this
23Act.
24(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
2597-1090, eff. 8-24-12.)
 

 

 

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1    Section 10. The Condominium Property Act is amended by
2adding Section 18.10 as follows:
 
3    (765 ILCS 605/18.10 new)
4    Sec. 18.10. Generally accepted accounting principles. An
5association subject to this Act that consists of 1,000 or more
6units shall use generally accepted accounting principles in
7fulfilling any accounting obligations under this Act.