102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0800

 

Introduced 2/10/2021, by Rep. Jaime M. Andrade, Jr.

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 605/18.7

    Amends the Condominium Property Act. Provides that a community association manager shall not enter into any agreement for payment or commission with an entity that provides goods or services to the association without first giving prior written disclosure to the board of managers.


LRB102 12538 LNS 17876 b

 

 

A BILL FOR

 

HB0800LRB102 12538 LNS 17876 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 Condominium Property Act is amended by
5changing Section 18.7 as follows:
 
6    (765 ILCS 605/18.7)
7    Sec. 18.7. Standards for community association managers.
8    (a) "Community association" means an association in which
9membership is a condition of ownership or shareholder interest
10of a unit in a condominium, cooperative, townhouse, villa, or
11other residential unit that is part of a residential
12development plan as a master association or common interest
13community and that is authorized to impose an assessment and
14other costs that may become a lien on the unit or lot.
15    (b) "Community association manager" means an individual
16who administers for compensation the coordination of
17financial, administrative, maintenance, or other duties called
18for in the management contract, including individuals who are
19direct employees of a community association. A manager does
20not include support staff, such as bookkeepers, administrative
21assistants, secretaries, property inspectors, or customer
22service representatives.
23    (c) Requirements. To perform services as a community

 

 

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1association manager, an individual must meet these
2requirements:
3        (1) shall have attained the age of 21 and be a citizen
4    or legal permanent resident of the United States;
5        (2) shall not have been convicted of forgery,
6    embezzlement, obtaining money under false pretenses,
7    larceny, extortion, conspiracy to defraud or other similar
8    offense or offenses;
9        (3) shall have a working knowledge of the fundamentals
10    of community association management, including the
11    Condominium Property Act, the Illinois Not-for-Profit
12    Corporation Act, and any other laws pertaining to
13    community association management; and
14        (4) shall not have engaged in the following
15    activities: failure to cooperate with any law enforcement
16    agency in the investigation of a complaint; or failure to
17    produce any document, book, or record in the possession or
18    control of the community association manager after a
19    request for production of that document, book, or record
20    in the course of an investigation of a complaint.
21    (d) Access to community association funds. For community
22associations of 6 or more units, apartments, townhomes, villas
23or other residential units, a community association manager or
24the firm with whom the manager is employed shall not solely and
25exclusively have access to and disburse funds of a community
26association unless:

 

 

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1        (1) There is a fidelity bond in place.
2        (2) The fidelity bond is in an amount not less than all
3    monies of that association in the custody or control of
4    the community association manager.
5        (3) The fidelity bond covers the community association
6    manager and all partners, officers, and employees of the
7    firm with whom the community association manager is
8    employed during the term of the bond, as well as the
9    community association officers, directors, and employees
10    of the community association who control or disburse
11    funds.
12        (4) The insurance company issuing the bond may not
13    cancel or refuse to renew the bond without giving not less
14    than 10 days' prior written notice to the community
15    association.
16        (5) The community association shall secure and pay for
17    the bond.
18    (e) A community association manager who provides community
19association management services for more than one community
20association shall maintain separate, segregated accounts for
21each community association. The funds shall not, in any event,
22be commingled with funds of the community association manager,
23the firm of the community association manager, or any other
24community association. The maintenance of these accounts shall
25be custodial, and the accounts shall be in the name of the
26respective community association.

 

 

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1    (f) Exempt persons. Except as otherwise provided, this
2Section does not apply to any person acting as a receiver,
3trustee in bankruptcy, administrator, executor, or guardian
4acting under a court order or under the authority of a will or
5of a trust instrument.
6    (g) Right of Action.
7        (1) Nothing in this amendatory Act of the 95th General
8    Assembly shall create a cause of action by a unit owner,
9    shareholder, or community association member against a
10    community association manager or the firm of a community
11    association manager.
12        (2) This amendatory Act of the 95th General Assembly
13    shall not impair any right of action by a unit owner or
14    shareholder against a community association board of
15    directors under existing law.
16    (h) A community association manager who provides community
17association management services shall not enter into any
18agreement for payment or commission with any person,
19corporation, party, partnership, or other entity that provides
20goods or services to the association without first giving
21prior written disclosure to the board of managers.
22(Source: P.A. 95-318, eff. 1-1-08.)