102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0111

 

Introduced 2/3/2021, by Sen. Sara Feigenholtz

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 605/15  from Ch. 30, par. 315
765 ILCS 605/31  from Ch. 30, par. 331

    Amends the Condominium Property Act. Provides that any unit owner objecting to a sale of the property shall have 30 (instead of 20) days from the date of the meeting approving the sale of the property to file a written objection. Provides that for the vote to approve a sale of the property to be valid, the notice to unit owners announcing the unit owner meeting shall include the name of the proposed purchaser, the amount the purchaser is offering, and copies of any written offer from the proposed purchaser. Provides that the notice shall apprise the unit owners that after the purchaser has received the required 75% approval, any unit owner objecting to the sale shall have 30 days from the date of the meeting approving the sale of the property to file a written objection. Provides that a sale of the property is solely within the powers, duties, and authority reserved by law to the members of the association. Restricts the association and the board of managers from acting in furtherance of a sale of the property on behalf of all unit owners absent the approval of such action. Allows a unit owner to serve a written demand on the board of managers to immediately cease and desist taking action if the association or board of managers takes any action in furtherance of a sale of the property on behalf of all unit owners without first receiving the affirmative vote of not less than 2/3 of unit owners. Requires the board of managers to certify to each unit owner making the demand that the action has ceased or that no such action has taken place within the preceding 90 days. Allows a unit owner making a demand to commence a legal action to enjoin and restrain the unauthorized action if the board of managers fails to certify that all action has ceased or is not taking place, or falsely certifies the same. Provides that, upon proof of a violation, the unit owner is entitled to recover from the association and any member of the board of managers participating in or approving the unauthorized action all reasonable costs and expenses. Makes other changes.


LRB102 04084 LNS 14100 b

 

 

A BILL FOR

 

SB0111LRB102 04084 LNS 14100 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 Sections 15 and 31 as follows:
 
6    (765 ILCS 605/15)  (from Ch. 30, par. 315)
7    Sec. 15. Sale of property.
8    (a) Unless a greater percentage is provided for in the
9declaration or bylaws, and notwithstanding the provisions of
10Sections 13 and 14 hereof, a majority of the unit owners where
11the property contains 2 units, or not less than 66 2/3% where
12the property contains three units, and not less than 75% where
13the property contains 4 or more units may, by affirmative vote
14at a meeting of unit owners duly called for such purpose, elect
15to sell the property. Such action shall be binding upon all
16unit owners, and it shall thereupon become the duty of every
17unit owner to execute and deliver such instruments and to
18perform all acts as in manner and form may be necessary to
19effect such sale, provided, however, that any unit owner who
20did not vote in favor of such action and who has filed written
21objection thereto with the manager or board of managers within
2230 20 days after the date of the meeting at which such sale was
23approved shall be entitled to receive from the proceeds of

 

 

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1such sale an amount equivalent to the greater of: (i) the value
2of his or her interest, as determined by a fair appraisal, less
3the amount of any unpaid assessments or charges due and owing
4from such unit owner or (ii) the outstanding balance of any
5bona fide debt secured by the objecting unit owner's interest
6which was incurred by such unit owner in connection with the
7acquisition or refinance of the unit owner's interest, less
8the amount of any unpaid assessments or charges due and owing
9from such unit owner. The objecting unit owner is also
10entitled to receive from the proceeds of a sale under this
11Section reimbursement for reasonable relocation costs,
12determined in the same manner as under the federal Uniform
13Relocation Assistance and Real Property Acquisition Policies
14Act of 1970, as amended from time to time, and as implemented
15by regulations promulgated under that Act.
16    For the vote to approve the sale of the property to be
17valid, the notice to unit owners announcing the unit owner
18meeting called for the purpose of voting on whether to approve
19the sale of the property shall include the name of the proposed
20purchaser, the amount the purchaser is offering, and copies of
21any written offer from the proposed purchaser. In addition,
22the notice shall apprise the unit owners that after the
23purchaser has received the required 75% approval, any unit
24owner objecting to the sale pursuant to this Section shall
25have 30 days from the date of the meeting approving the sale of
26the property to file a written objection and the notice shall

 

 

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1set forth the address to which such a written objection shall
2be mailed.
3    (b) If there is a disagreement as to the value of the
4interest of a unit owner who did not vote in favor of the sale
5of the property, that unit owner shall have a right to
6designate an expert in appraisal or property valuation to
7represent him, in which case, the prospective purchaser of the
8property shall designate an expert in appraisal or property
9valuation to represent him, and both of these experts shall
10mutually designate a third expert in appraisal or property
11valuation. The 3 experts shall constitute a panel to determine
12by vote of at least 2 of the members of the panel, the value of
13that unit owner's interest in the property. The changes made
14by this amendatory Act of the 100th General Assembly apply to
15sales under this Section that are pending or commenced on and
16after the effective date of this amendatory Act of the 100th
17General Assembly.
18    (c) A sale of the property pursuant to this Section is
19solely within the powers, duties, and authority reserved by
20law to the members of the association as referred to in Section
2118.4.
22    (d) Neither the association nor the board of managers
23shall have the authority to act in furtherance of a sale of the
24property on behalf of all unit owners absent approval of such
25action at a special meeting of unit owners duly called for that
26purpose pursuant to subparagraph (iii) of paragraph (13) of

 

 

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1subsection (b) of Section 18. As used in this subsection, an
2action in furtherance of the sale of the property on behalf of
3all unit owners includes, but is not limited to:
4        (1) listing the property with a real estate broker for
5    sale on behalf of all unit owners;
6        (2) otherwise offering the property for sale on behalf
7    of all unit owners;
8        (3) negotiating a contract for sale of the property on
9    behalf of all unit owners; or
10        (4) any combination of paragraphs (1), (2), and (3).
11The taking of any such action in furtherance of a sale of the
12property in the absence of the consent of unit owners granted
13at a special meeting of unit owners duly called for that
14purpose pursuant to subparagraph (iii) of paragraph (13) of
15subsection (b) of Section 18 shall constitute ultra vires
16action and shall not bind the association or any unit owner.
17    (e) If the association or the board of managers takes any
18action in furtherance of a sale of the property on behalf of
19all unit owners without first receiving the affirmative vote
20of not less than 2/3 of the votes of unit owners at a meeting
21duly called for that purpose as provided in subparagraph (iii)
22of paragraph (13) of subsection (b) of Section 18, any unit
23owner, or his or her representative, may serve a written
24demand on the board of managers or manager, if any, to
25immediately cease and desist taking such action. The board of
26managers or manager, if any, shall, within 10 days after

 

 

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1service of such a written demand, certify in writing to each
2person making the demand that the action in violation of
3subsection (d) has ceased or, if no such action has taken
4place, shall certify in writing that no such action is taking
5place or has taken place within the preceding 90 days. The
6certification shall be under penalties of perjury.
7    (f) If the board of managers, directly or through the
8manager, if any, fails to certify in writing to the person
9sending the demand that all action in violation of subsection
10(d) has ceased or is not taking place, as provided in
11subsection (e), or falsely certifies the same, then any unit
12owner making the demand may commence legal action to enjoin
13and restrain the unauthorized action. The unit owner or unit
14owners bringing the action, upon proof of a violation of this
15Section by a preponderance of the evidence, shall be awarded,
16from the association and from any member of the board of
17managers participating in or approving the unauthorized
18actions, jointly and severally, all reasonable costs and
19expenses of the enforcement of this Section, including, but
20not limited to, reasonable attorney's fees.
21(Source: P.A. 100-292, eff. 1-1-18.)
 
22    (765 ILCS 605/31)  (from Ch. 30, par. 331)
23    Sec. 31. Subdivision or combination of units.
24    (a) As used in this Section, "combination of any units"
25means any 2 or more residential units to be used as a single

 

 

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1unit as shown on the plat or amended plat, which may involve,
2without limitation, additional exclusive use of a portion of
3the common elements within the building adjacent to the
4combined unit (for example, without limitation, the use of a
5portion of an adjacent common hallway).
6    (b) Unless the condominium instruments expressly prohibit
7the subdivision or combination of any units, and subject to
8additional limitations provided by the condominium
9instruments, the owner or owners may, at their own expense,
10subdivide or combine and locate or relocate common elements
11affected or required thereby, in accordance with the
12provisions of the condominium instruments and the requirements
13of this Act. The owner or owners shall make written
14application to the board of managers, requesting an amendment
15to the condominium instruments, setting forth in the
16application a proposed reallocation to the new units of the
17percentage interest in the common elements, and setting forth
18whether the limited common elements, if any, previously
19assigned to the unit to be subdivided should be assigned to
20each new unit or to fewer than all of the new units created and
21requesting, if desired in the event of a combination of any
22units, that the new unit be granted the exclusive right to use
23as a limited common element, a portion of the common elements
24within the building adjacent to the new unit. If the
25transaction is approved by a majority of the board of
26managers, it shall be effective upon (1) recording of an

 

 

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1amendment to condominium instruments in accordance with the
2provisions of Sections 5 and 6 of this Act, and (2) execution
3by the owners of the units involved.
4    (c) In the event of a combination of any units, the
5amendment under subsection (b) may grant the owner of the
6combined unit the exclusive right to use, as a limited common
7element, a portion of the common elements within the building
8adjacent to the new unit. The request for the amendment shall
9be granted and the amendment shall grant this exclusive right
10to use as a limited common element if the following conditions
11are met:
12        (1) the common element for which the exclusive right
13    to use as a limited common element is sought is not
14    necessary or practical for use by the owners of any units
15    other than the owner or owners of the combined unit; and
16        (2) the owner or owners of the combined unit are
17    responsible for any and all costs associated with the
18    renovation, modification, or other adaptation performed as
19    a result of the granting of the exclusive right to use as a
20    limited common element.
21    (d) If the combined unit is divided, part of the original
22combined unit is sold, and the grant of the exclusive right to
23use as a limited common element is no longer necessary,
24practical, or appropriate for the use and enjoyment of the
25owner or owners of the original combined unit, the board may
26terminate the grant of the exclusive right to use as a limited

 

 

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1common element and require that the owner or owners of the
2original combined unit restore the common area to its
3condition prior to the grant of the exclusive right to use as a
4limited common element. If the combined unit is sold without
5being divided, the grant of the exclusive right to use as a
6limited common element shall apply to the new owner or owners
7of the combined unit, who shall assume the rights and
8responsibilities of the original owner or owners.
9    (e) Under this Section, the exclusive right to use as a
10limited common element any portion of the common elements that
11is not necessary or practical for use by the owners of any
12other units is not a diminution of the ownership interests of
13all other unit owners requiring unanimous consent of all unit
14owners under subsection (e) of Section 4 of this Act or any
15percentage set forth in the condominium instruments.
16    (f) Notwithstanding Section 27 of this Act and any other
17amendment provisions set forth in the condominium instruments,
18an amendment pursuant to this Section is effective if it meets
19the requirements set forth in this Section.
20(Source: P.A. 100-292, eff. 1-1-18.)