Rep. Jaime M. Andrade, Jr.

Filed: 3/17/2021

 

 


 

 


 
10200HB0800ham001LRB102 12538 LNS 23266 a

1
AMENDMENT TO HOUSE BILL 800

2    AMENDMENT NO. ______. Amend House Bill 800 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Condominium Property Act is amended by
5changing Sections 18 and 18.7 as follows:
 
6    (765 ILCS 605/18)  (from Ch. 30, par. 318)
7    Sec. 18. Contents of bylaws. The bylaws shall provide for
8at least the following:
9        (a)(1) The election from among the unit owners of a
10    board of managers, the number of persons constituting such
11    board, and that the terms of at least one-third of the
12    members of the board shall expire annually and that all
13    members of the board shall be elected at large; if there
14    are multiple owners of a single unit, only one of the
15    multiple owners shall be eligible to serve as a member of
16    the board at any one time;

 

 

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

 

 

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

 

 

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1    that assessments for additions and alterations to the
2    common elements or to association-owned property not
3    included in the adopted annual budget, shall be separately
4    assessed and are subject to approval of two-thirds of the
5    total votes of all unit owners, (vi) that the board of
6    managers may adopt separate assessments payable over more
7    than one fiscal year. With respect to multi-year
8    assessments not governed by items (iv) and (v), the entire
9    amount of the multi-year assessment shall be deemed
10    considered and authorized in the first fiscal year in
11    which the assessment is approved;
12        (9)(A) that every meeting of the board of managers
13    shall be open to any unit owner, except that the board may
14    close any portion of a noticed meeting or meet separately
15    from a noticed meeting to: (i) discuss litigation when an
16    action against or on behalf of the particular association
17    has been filed and is pending in a court or administrative
18    tribunal, or when the board of managers finds that such an
19    action is probable or imminent, (ii) discuss the
20    appointment, employment, engagement, or dismissal of an
21    employee, independent contractor, agent, or other provider
22    of goods and services, (iii) interview a potential
23    employee, independent contractor, agent, or other provider
24    of goods and services, (iv) discuss violations of rules
25    and regulations of the association, (v) discuss a unit
26    owner's unpaid share of common expenses, or (vi) consult

 

 

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1    with the association's legal counsel; that any vote on
2    these matters shall take place at a meeting of the board of
3    managers or portion thereof open to any unit owner;
4        (B) that board members may participate in and act at
5    any meeting of the board of managers in person, by
6    telephonic means, or by use of any acceptable
7    technological means whereby all persons participating in
8    the meeting can communicate with each other; that
9    participation constitutes attendance and presence in
10    person at the meeting;
11        (C) that any unit owner may record the proceedings at
12    meetings of the board of managers or portions thereof
13    required to be open by this Act by tape, film or other
14    means, and that the board may prescribe reasonable rules
15    and regulations to govern the right to make such
16    recordings;
17        (D) that notice of every meeting of the board of
18    managers shall be given to every board member at least 48
19    hours prior thereto, unless the board member waives notice
20    of the meeting pursuant to subsection (a) of Section 18.8;
21    and
22        (E) that notice of every meeting of the board of
23    managers shall be posted in entranceways, elevators, or
24    other conspicuous places in the condominium at least 48
25    hours prior to the meeting of the board of managers except
26    where there is no common entranceway for 7 or more units,

 

 

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1    the board of managers may designate one or more locations
2    in the proximity of these units where the notices of
3    meetings shall be posted; that notice of every meeting of
4    the board of managers shall also be given at least 48 hours
5    prior to the meeting, or such longer notice as this Act may
6    separately require, to: (i) each unit owner who has
7    provided the association with written authorization to
8    conduct business by acceptable technological means, and
9    (ii) to the extent that the condominium instruments of an
10    association require, to each other unit owner, as required
11    by subsection (f) of Section 18.8, by mail or delivery,
12    and that no other notice of a meeting of the board of
13    managers need be given to any unit owner;
14        (10) that the board shall meet at least 4 times
15    annually;
16        (11) that no member of the board or officer shall be
17    elected for a term of more than 2 years, but that officers
18    and board members may succeed themselves;
19        (12) the designation of an officer to mail and receive
20    all notices and execute amendments to condominium
21    instruments as provided for in this Act and in the
22    condominium instruments;
23        (13) the method of filling vacancies on the board
24    which shall include authority for the remaining members of
25    the board to fill the vacancy by two-thirds vote until the
26    next annual meeting of unit owners or for a period

 

 

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1    terminating no later than 30 days following the filing of
2    a petition signed by unit owners holding 20% of the votes
3    of the association requesting a meeting of the unit owners
4    to fill the vacancy for the balance of the term, and that a
5    meeting of the unit owners shall be called for purposes of
6    filling a vacancy on the board no later than 30 days
7    following the filing of a petition signed by unit owners
8    holding 20% of the votes of the association requesting
9    such a meeting, and the method of filling vacancies among
10    the officers that shall include the authority for the
11    members of the board to fill the vacancy for the unexpired
12    portion of the term;
13        (14) what percentage of the board of managers, if
14    other than a majority, shall constitute a quorum;
15        (15) provisions concerning notice of board meetings to
16    members of the board;
17        (16) the board of managers may not enter into a
18    contract with a current board member or with a corporation
19    or partnership in which a board member or a member of the
20    board member's immediate family has 25% or more interest,
21    unless notice of intent to enter the contract is given to
22    unit owners within 20 days after a decision is made to
23    enter into the contract and the unit owners are afforded
24    an opportunity by filing a petition, signed by 20% of the
25    unit owners, for an election to approve or disapprove the
26    contract; such petition shall be filed within 30 days

 

 

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1    after such notice and such election shall be held within
2    30 days after filing the petition; for purposes of this
3    subsection, a board member's immediate family means the
4    board member's spouse, parents, and children;
5        (16.1) that a statement of commission and its amount
6    shall be provided to the board, and the board shall make
7    such information available to unit owners;
8        (17) that the board of managers may disseminate to
9    unit owners biographical and background information about
10    candidates for election to the board if (i) reasonable
11    efforts to identify all candidates are made and all
12    candidates are given an opportunity to include
13    biographical and background information in the information
14    to be disseminated; and (ii) the board does not express a
15    preference in favor of any candidate;
16        (18) any proxy distributed for board elections by the
17    board of managers gives unit owners the opportunity to
18    designate any person as the proxy holder, and gives the
19    unit owner the opportunity to express a preference for any
20    of the known candidates for the board or to write in a
21    name;
22        (19) that special meetings of the board of managers
23    can be called by the president or 25% of the members of the
24    board;
25        (20) that the board of managers may establish and
26    maintain a system of master metering of public utility

 

 

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1    services and collect payments in connection therewith,
2    subject to the requirements of the Tenant Utility Payment
3    Disclosure Act; and
4        (21) that the board may ratify and confirm actions of
5    the members of the board taken in response to an
6    emergency, as that term is defined in subdivision
7    (a)(8)(iv) of this Section; that the board shall give
8    notice to the unit owners of: (i) the occurrence of the
9    emergency event within 7 business days after the emergency
10    event, and (ii) the general description of the actions
11    taken to address the event within 7 days after the
12    emergency event.
13        The intent of the provisions of Public Act 99-472
14    adding this paragraph (21) is to empower and support
15    boards to act in emergencies.
16        (b)(1) What percentage of the unit owners, if other
17    than 20%, shall constitute a quorum provided that, for
18    condominiums with 20 or more units, the percentage of unit
19    owners constituting a quorum shall be 20% unless the unit
20    owners holding a majority of the percentage interest in
21    the association provide for a higher percentage, provided
22    that in voting on amendments to the association's bylaws,
23    a unit owner who is in arrears on the unit owner's regular
24    or separate assessments for 60 days or more, shall not be
25    counted for purposes of determining if a quorum is
26    present, but that unit owner retains the right to vote on

 

 

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1    amendments to the association's bylaws;
2        (2) that the association shall have one class of
3    membership;
4        (3) that the members shall hold an annual meeting, one
5    of the purposes of which shall be to elect members of the
6    board of managers;
7        (4) the method of calling meetings of the unit owners;
8        (5) that special meetings of the members can be called
9    by the president, board of managers, or by 20% of unit
10    owners;
11        (6) that written notice of any membership meeting
12    shall be mailed or delivered giving members no less than
13    10 and no more than 30 days notice of the time, place and
14    purpose of such meeting except that notice may be sent, to
15    the extent the condominium instruments or rules adopted
16    thereunder expressly so provide, by electronic
17    transmission consented to by the unit owner to whom the
18    notice is given, provided the director and officer or his
19    agent certifies in writing to the delivery by electronic
20    transmission;
21        (7) that voting shall be on a percentage basis, and
22    that the percentage vote to which each unit is entitled is
23    the percentage interest of the undivided ownership of the
24    common elements appurtenant thereto, provided that the
25    bylaws may provide for approval by unit owners in
26    connection with matters where the requisite approval on a

 

 

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1    percentage basis is not specified in this Act, on the
2    basis of one vote per unit;
3        (8) that, where there is more than one owner of a unit,
4    if only one of the multiple owners is present at a meeting
5    of the association, he is entitled to cast all the votes
6    allocated to that unit, if more than one of the multiple
7    owners are present, the votes allocated to that unit may
8    be cast only in accordance with the agreement of a
9    majority in interest of the multiple owners, unless the
10    declaration expressly provides otherwise, that there is
11    majority agreement if any one of the multiple owners cast
12    the votes allocated to that unit without protest being
13    made promptly to the person presiding over the meeting by
14    any of the other owners of the unit;
15        (9)(A) except as provided in subparagraph (B) of this
16    paragraph (9) in connection with board elections, that a
17    unit owner may vote by proxy executed in writing by the
18    unit owner or by his duly authorized attorney in fact;
19    that the proxy must bear the date of execution and, unless
20    the condominium instruments or the written proxy itself
21    provide otherwise, is invalid after 11 months from the
22    date of its execution; to the extent the condominium
23    instruments or rules adopted thereunder expressly so
24    provide, a vote or proxy may be submitted by electronic
25    transmission, provided that any such electronic
26    transmission shall either set forth or be submitted with

 

 

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

 

 

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

 

 

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1    candidates whose names do not appear on the ballot; a unit
2    owner who submits a vote using electronic or acceptable
3    technological means may request and cast a ballot in
4    person at the election meeting, thereby voiding any vote
5    previously submitted by that unit owner;
6        (C) that if a written petition by unit owners with at
7    least 20% of the votes of the association is delivered to
8    the board within 30 days after the board's approval of a
9    rule adopted pursuant to subparagraph (B) or subparagraph
10    (B-5) of this paragraph (9), the board shall call a
11    meeting of the unit owners within 30 days after the date of
12    delivery of the petition; that unless a majority of the
13    total votes of the unit owners are cast at the meeting to
14    reject the rule, the rule is ratified;
15        (D) that votes cast by ballot under subparagraph (B)
16    or electronic or acceptable technological means under
17    subparagraph (B-5) of this paragraph (9) are valid for the
18    purpose of establishing a quorum;
19        (10) that the association may, upon adoption of the
20    appropriate rules by the board of managers, conduct
21    elections by secret ballot whereby the voting ballot is
22    marked only with the percentage interest for the unit and
23    the vote itself, provided that the board further adopt
24    rules to verify the status of the unit owner issuing a
25    proxy or casting a ballot; and further, that a candidate
26    for election to the board of managers or such candidate's

 

 

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1    representative shall have the right to be present at the
2    counting of ballots at such election;
3        (11) that in the event of a resale of a condominium
4    unit the purchaser of a unit from a seller other than the
5    developer pursuant to an installment sales contract for
6    purchase shall during such times as he or she resides in
7    the unit be counted toward a quorum for purposes of
8    election of members of the board of managers at any
9    meeting of the unit owners called for purposes of electing
10    members of the board, shall have the right to vote for the
11    election of members of the board of managers and to be
12    elected to and serve on the board of managers unless the
13    seller expressly retains in writing any or all of such
14    rights. In no event may the seller and purchaser both be
15    counted toward a quorum, be permitted to vote for a
16    particular office or be elected and serve on the board.
17    Satisfactory evidence of the installment sales contract
18    shall be made available to the association or its agents.
19    For purposes of this subsection, "installment sales
20    contract" shall have the same meaning as set forth in
21    Section 5 of the Installment Sales Contract Act and
22    Section 1(e) of the Dwelling Unit Installment Contract
23    Act;
24        (12) the method by which matters subject to the
25    approval of unit owners set forth in this Act, or in the
26    condominium instruments, will be submitted to the unit

 

 

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1    owners at special membership meetings called for such
2    purposes; and
3        (13) that matters subject to the affirmative vote of
4    not less than 2/3 of the votes of unit owners at a meeting
5    duly called for that purpose, shall include, but not be
6    limited to:
7            (i) merger or consolidation of the association;
8            (ii) sale, lease, exchange, or other disposition
9        (excluding the mortgage or pledge) of all, or
10        substantially all of the property and assets of the
11        association; and
12            (iii) the purchase or sale of land or of units on
13        behalf of all unit owners.
14        (c) Election of a president from among the board of
15    managers, who shall preside over the meetings of the board
16    of managers and of the unit owners.
17        (d) Election of a secretary from among the board of
18    managers, who shall keep the minutes of all meetings of
19    the board of managers and of the unit owners and who shall,
20    in general, perform all the duties incident to the office
21    of secretary.
22        (e) Election of a treasurer from among the board of
23    managers, who shall keep the financial records and books
24    of account.
25        (f) Maintenance, repair and replacement of the common
26    elements and payments therefor, including the method of

 

 

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1    approving payment vouchers.
2        (g) An association with 30 or more units shall obtain
3    and maintain fidelity insurance covering persons who
4    control or disburse funds of the association for the
5    maximum amount of coverage available to protect funds in
6    the custody or control of the association plus the
7    association reserve fund. All management companies which
8    are responsible for the funds held or administered by the
9    association shall maintain and furnish to the association
10    a fidelity bond for the maximum amount of coverage
11    available to protect funds in the custody of the
12    management company at any time. The association shall bear
13    the cost of the fidelity insurance and fidelity bond,
14    unless otherwise provided by contract between the
15    association and a management company. The association
16    shall be the direct obligee of any such fidelity bond. A
17    management company holding reserve funds of an association
18    shall at all times maintain a separate account for each
19    association, provided, however, that for investment
20    purposes, the Board of Managers of an association may
21    authorize a management company to maintain the
22    association's reserve funds in a single interest bearing
23    account with similar funds of other associations. The
24    management company shall at all times maintain records
25    identifying all moneys of each association in such
26    investment account. The management company may hold all

 

 

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1    operating funds of associations which it manages in a
2    single operating account but shall at all times maintain
3    records identifying all moneys of each association in such
4    operating account. Such operating and reserve funds held
5    by the management company for the association shall not be
6    subject to attachment by any creditor of the management
7    company.
8        For the purpose of this subsection, a management
9    company shall be defined as a person, partnership,
10    corporation, or other legal entity entitled to transact
11    business on behalf of others, acting on behalf of or as an
12    agent for a unit owner, unit owners or association of unit
13    owners for the purpose of carrying out the duties,
14    responsibilities, and other obligations necessary for the
15    day to day operation and management of any property
16    subject to this Act. For purposes of this subsection, the
17    term "fiduciary insurance coverage" shall be defined as
18    both a fidelity bond and directors and officers liability
19    coverage, the fidelity bond in the full amount of
20    association funds and association reserves that will be in
21    the custody of the association, and the directors and
22    officers liability coverage at a level as shall be
23    determined to be reasonable by the board of managers, if
24    not otherwise established by the declaration or by laws.
25        Until one year after September 21, 1985 (the effective
26    date of Public Act 84-722), if a condominium association

 

 

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1    has reserves plus assessments in excess of $250,000 and
2    cannot reasonably obtain 100% fidelity bond coverage for
3    such amount, then it must obtain a fidelity bond coverage
4    of $250,000.
5        (h) Method of estimating the amount of the annual
6    budget, and the manner of assessing and collecting from
7    the unit owners their respective shares of such estimated
8    expenses, and of any other expenses lawfully agreed upon.
9        (i) That upon 10 days notice to the manager or board of
10    managers and payment of a reasonable fee, any unit owner
11    shall be furnished a statement of his account setting
12    forth the amount of any unpaid assessments or other
13    charges due and owing from such owner.
14        (j) Designation and removal of personnel necessary for
15    the maintenance, repair and replacement of the common
16    elements.
17        (k) Such restrictions on and requirements respecting
18    the use and maintenance of the units and the use of the
19    common elements, not set forth in the declaration, as are
20    designed to prevent unreasonable interference with the use
21    of their respective units and of the common elements by
22    the several unit owners.
23        (l) Method of adopting and of amending administrative
24    rules and regulations governing the operation and use of
25    the common elements.
26        (m) The percentage of votes required to modify or

 

 

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1    amend the bylaws, but each one of the particulars set
2    forth in this section shall always be embodied in the
3    bylaws.
4        (n)(i) The provisions of this Act, the declaration,
5    bylaws, other condominium instruments, and rules and
6    regulations that relate to the use of the individual unit
7    or the common elements shall be applicable to any person
8    leasing a unit and shall be deemed to be incorporated in
9    any lease executed or renewed on or after August 30, 1984
10    (the effective date of Public Act 83-1271).
11        (ii) With regard to any lease entered into subsequent
12    to July 1, 1990 (the effective date of Public Act 86-991),
13    the unit owner leasing the unit shall deliver a copy of the
14    signed lease to the board or if the lease is oral, a
15    memorandum of the lease, not later than the date of
16    occupancy or 10 days after the lease is signed, whichever
17    occurs first. In addition to any other remedies, by filing
18    an action jointly against the tenant and the unit owner,
19    an association may seek to enjoin a tenant from occupying
20    a unit or seek to evict a tenant under the provisions of
21    Article IX of the Code of Civil Procedure for failure of
22    the lessor-owner to comply with the leasing requirements
23    prescribed by this Section or by the declaration, bylaws,
24    and rules and regulations. The board of managers may
25    proceed directly against a tenant, at law or in equity, or
26    under the provisions of Article IX of the Code of Civil

 

 

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1    Procedure, for any other breach by tenant of any
2    covenants, rules, regulations or bylaws.
3        (o) The association shall have no authority to forbear
4    the payment of assessments by any unit owner.
5        (p) That when 30% or fewer of the units, by number,
6    possess over 50% in the aggregate of the votes in the
7    association, any percentage vote of members specified
8    herein or in the condominium instruments shall require the
9    specified percentage by number of units rather than by
10    percentage of interest in the common elements allocated to
11    units that would otherwise be applicable and garage units
12    or storage units, or both, shall have, in total, no more
13    votes than their aggregate percentage of ownership in the
14    common elements; this shall mean that if garage units or
15    storage units, or both, are to be given a vote, or portion
16    of a vote, that the association must add the total number
17    of votes cast of garage units, storage units, or both, and
18    divide the total by the number of garage units, storage
19    units, or both, and multiply by the aggregate percentage
20    of ownership of garage units and storage units to
21    determine the vote, or portion of a vote, that garage
22    units or storage units, or both, have. For purposes of
23    this subsection (p), when making a determination of
24    whether 30% or fewer of the units, by number, possess over
25    50% in the aggregate of the votes in the association, a
26    unit shall not include a garage unit or a storage unit.

 

 

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1        (q) That a unit owner may not assign, delegate,
2    transfer, surrender, or avoid the duties,
3    responsibilities, and liabilities of a unit owner under
4    this Act, the condominium instruments, or the rules and
5    regulations of the Association; and that such an attempted
6    assignment, delegation, transfer, surrender, or avoidance
7    shall be deemed void.
8    The provisions of this Section are applicable to all
9condominium instruments recorded under this Act. Any portion
10of a condominium instrument which contains provisions contrary
11to these provisions shall be void as against public policy and
12ineffective. Any such instrument which fails to contain the
13provisions required by this Section shall be deemed to
14incorporate such provisions by operation of law.
15(Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17;
1699-642, eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff.
171-1-18; 100-863, eff. 8-14-18.)
 
18    (765 ILCS 605/18.7)
19    Sec. 18.7. Standards for community association managers.
20    (a) "Community association" means an association in which
21membership is a condition of ownership or shareholder interest
22of a unit in a condominium, cooperative, townhouse, villa, or
23other residential unit that is part of a residential
24development plan as a master association or common interest
25community and that is authorized to impose an assessment and

 

 

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1other costs that may become a lien on the unit or lot.
2    (b) "Community association manager" means an individual
3who administers for compensation the coordination of
4financial, administrative, maintenance, or other duties called
5for in the management contract, including individuals who are
6direct employees of a community association. A manager does
7not include support staff, such as bookkeepers, administrative
8assistants, secretaries, property inspectors, or customer
9service representatives.
10    (c) Requirements. To perform services as a community
11association manager, an individual must meet these
12requirements:
13        (1) shall have attained the age of 21 and be a citizen
14    or legal permanent resident of the United States;
15        (2) shall not have been convicted of forgery,
16    embezzlement, obtaining money under false pretenses,
17    larceny, extortion, conspiracy to defraud or other similar
18    offense or offenses;
19        (3) shall have a working knowledge of the fundamentals
20    of community association management, including the
21    Condominium Property Act, the Illinois Not-for-Profit
22    Corporation Act, and any other laws pertaining to
23    community association management; and
24        (4) shall not have engaged in the following
25    activities: failure to cooperate with any law enforcement
26    agency in the investigation of a complaint; or failure to

 

 

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1    produce any document, book, or record in the possession or
2    control of the community association manager after a
3    request for production of that document, book, or record
4    in the course of an investigation of a complaint.
5    (d) Access to community association funds. For community
6associations of 6 or more units, apartments, townhomes, villas
7or other residential units, a community association manager or
8the firm with whom the manager is employed shall not solely and
9exclusively have access to and disburse funds of a community
10association unless:
11        (1) There is a fidelity bond in place.
12        (2) The fidelity bond is in an amount not less than all
13    monies of that association in the custody or control of
14    the community association manager.
15        (3) The fidelity bond covers the community association
16    manager and all partners, officers, and employees of the
17    firm with whom the community association manager is
18    employed during the term of the bond, as well as the
19    community association officers, directors, and employees
20    of the community association who control or disburse
21    funds.
22        (4) The insurance company issuing the bond may not
23    cancel or refuse to renew the bond without giving not less
24    than 10 days' prior written notice to the community
25    association.
26        (5) The community association shall secure and pay for

 

 

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1    the bond.
2    (e) A community association manager who provides community
3association management services for more than one community
4association shall maintain separate, segregated accounts for
5each community association. The funds shall not, in any event,
6be commingled with funds of the community association manager,
7the firm of the community association manager, or any other
8community association. The maintenance of these accounts shall
9be custodial, and the accounts shall be in the name of the
10respective community association.
11    (f) Exempt persons. Except as otherwise provided, this
12Section does not apply to any person acting as a receiver,
13trustee in bankruptcy, administrator, executor, or guardian
14acting under a court order or under the authority of a will or
15of a trust instrument.
16    (g) Right of Action.
17        (1) Nothing in this amendatory Act of the 95th General
18    Assembly shall create a cause of action by a unit owner,
19    shareholder, or community association member against a
20    community association manager or the firm of a community
21    association manager.
22        (2) This amendatory Act of the 95th General Assembly
23    shall not impair any right of action by a unit owner or
24    shareholder against a community association board of
25    directors under existing law.
26    (h) A community association manager who provides community

 

 

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1association management services shall not enter into any
2agreement for payment or commission with any person,
3corporation, party, partnership, or other entity that provides
4goods or services to the association without first giving
5prior written disclosure to the board of managers.
6(Source: P.A. 95-318, eff. 1-1-08.)".