093_HB0186

                                     LRB093 00012 LCB 00012 b

 1        AN ACT concerning condominiums.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Condominium Property Act  is  amended  by
 5    changing Sections 18.4 and 18.5 and by adding Section 29.5 as
 6    follows:

 7        (765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
 8        Sec.  18.4.  Powers and Duties of Board of Managers.  The
 9    board of managers shall  exercise  for  the  association  all
10    powers, duties and authority vested in the association by law
11    or the condominium instruments except for such powers, duties
12    and   authority  reserved  by  law  to  the  members  of  the
13    association.  The powers and duties of the board of  managers
14    shall include, but shall not be limited to, the following:
15             (a)  To  provide  for  the  operation, care, upkeep,
16        maintenance, replacement and improvement  of  the  common
17        elements.  Nothing in this subsection (a) shall be deemed
18        to  invalidate  any provision in a condominium instrument
19        placing limits on expenditures for the  common  elements,
20        provided,  that  such  limits  shall not be applicable to
21        expenditures for repair, replacement, or  restoration  of
22        existing  portions  of  the  common  elements.   The term
23        "repair, replacement or restoration"  means  expenditures
24        to  deteriorated  or  damaged  portions  of  the property
25        related  to  the  existing  decorating,  facilities,   or
26        structural or mechanical components, interior or exterior
27        surfaces,  or  energy  systems  and  equipment  with  the
28        functional  equivalent  of  the original portions of such
29        areas.  Replacement of the common elements may result  in
30        an improvement over the original quality of such elements
31        or  facilities;  provided that, unless the improvement is
 
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 1        mandated by law or is an emergency  as  defined  in  item
 2        (iv)  of subparagraph (8) of paragraph (a) of Section 18,
 3        if the improvement  results  in  a  proposed  expenditure
 4        exceeding 5% of the annual budget, the board of managers,
 5        upon  written  petition  by  unit  owners with 20% of the
 6        votes of the association delivered to the board within 14
 7        days of the board  action  to  approve  the  expenditure,
 8        shall call a meeting of the unit owners within 30 days of
 9        the  date  of  delivery  of  the petition to consider the
10        expenditure.  Unless a majority of the total votes of the
11        unit owners  are  cast  at  the  meeting  to  reject  the
12        expenditure, it is ratified.
13             (b)  To  prepare,  adopt  and  distribute the annual
14        budget for the property.
15             (c)  To levy and expend assessments.
16             (d)  To collect assessments from unit owners.
17             (e)  To provide for the employment and dismissal  of
18        the  personnel necessary or advisable for the maintenance
19        and operation of the common elements.
20             (f)  To obtain adequate  and  appropriate  kinds  of
21        insurance.
22             (g)  To  own, convey, encumber, lease, and otherwise
23        deal with units conveyed to or purchased by it.
24             (h)  To  adopt  and  amend  rules  and   regulations
25        covering  the  details  of  the  operation and use of the
26        property, after a meeting of the unit owners  called  for
27        the specific purpose of discussing the proposed rules and
28        regulations.   Notice  of  the  meeting shall contain the
29        full text of the proposed rules and regulations, and  the
30        meeting  shall  conform  to  the  requirements of Section
31        18(b) of this Act, except that no quorum is  required  at
32        the  meeting  of  the unit owners unless the declaration,
33        bylaws or other condominium instrument expressly provides
34        to the contrary.  However,  no  rule  or  regulation  may
 
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 1        impair  any  rights  guaranteed by the First Amendment to
 2        the Constitution of the United States  or  Section  4  of
 3        Article I of the Illinois Constitution, nor may any rules
 4        or  regulations  conflict with the provisions of this Act
 5        or the condominium instruments.
 6             (i)  To  keep  detailed,  accurate  records  of  the
 7        receipts and expenditures affecting the use and operation
 8        of the property.
 9             (j)  To have access to each unit from time  to  time
10        as  may  be  necessary  for  the  maintenance,  repair or
11        replacement  of  any  common  elements  or   for   making
12        emergency  repairs  necessary  to  prevent  damage to the
13        common elements or to other units.
14             (k)  To   pay   real   property    taxes,    special
15        assessments,  and  any  other special taxes or charges of
16        the State of Illinois or  of  any  political  subdivision
17        thereof,  or other lawful taxing or assessing body, which
18        are authorized by law to be assessed and levied upon  the
19        real property of the condominium.
20             (l)  To  impose  charges  for late payment of a unit
21        owner's proportionate share of the  common  expenses,  or
22        any other expenses lawfully agreed upon, and after notice
23        and  an opportunity to be heard, to levy reasonable fines
24        for violation of the declaration, by-laws, and rules  and
25        regulations of the association.
26             (m)  Unless  the  condominium  instruments expressly
27        provide to the contrary, by a majority vote of the entire
28        board of managers, to assign the right of the association
29        to future income from common expenses or  other  sources,
30        and  to  mortgage  or  pledge  substantially  all  of the
31        remaining assets of the association.
32             (n)  To record the dedication of a  portion  of  the
33        common  elements  to  a  public  body  for  use as, or in
34        connection with, a street or utility where authorized  by
 
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 1        the unit owners under the provisions of Section 14.2.
 2             (o)  To  record  the granting of an easement for the
 3        laying of cable television cable where authorized by  the
 4        unit  owners  under  the  provisions  of Section 14.3; to
 5        obtain, if available and determined by the board to be in
 6        the best interests of the association,  cable  television
 7        service for all of the units of the condominium on a bulk
 8        identical  service  and equal cost per unit basis; and to
 9        assess and recover the expense as a common  expense  and,
10        if  so  determined by the board, to assess each and every
11        unit on the same equal cost per unit basis.
12             (p)  To seek relief on behalf  of  all  unit  owners
13        when  authorized pursuant to subsection (c) of Section 10
14        from or in connection with the assessment or  levying  of
15        real  property  taxes, special assessments, and any other
16        special taxes or changes of the State of Illinois  or  of
17        any political subdivision thereof or of any lawful taxing
18        or assessing body.
19             (q)  To   reasonably  accommodate  the  needs  of  a
20        handicapped unit owner as required by the  federal  Civil
21        Rights  Act  of  1968,  the  Human  Rights  Act  and  any
22        applicable local ordinances in the exercise of its powers
23        with respect to the use of common elements or approval of
24        modifications in an individual unit.
25        No  action  shall  be  taken  by  the  board  of managers
26    concerning the levying or assessing of any  fine  or  penalty
27    against  a  unit owner unless proper notice has been given to
28    the owner and the owner has been given an  opportunity  at  a
29    meeting  of  the  board  of  managers  to dispute the fine or
30    penalty.  The notice must consist of: (i) the time and  place
31    of  the  meeting  at  which  the  fine  or  penalty  will  be
32    discussed;  (ii)  the amount of the proposed penalty or fine;
33    (iii) the reason for the proposed fine  or  penalty;  (iv)  a
34    notification  that  all  interested persons shall be given an
 
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 1    opportunity to be heard; and (v) a statement  that  the  unit
 2    owner  may  be  represented  by  counsel at the meeting.  The
 3    notice shall be sent by certified mail not more than 30  days
 4    and not less than 10 days prior to the meeting.
 5        In  the  performance  of  their  duties, the officers and
 6    members of the board, whether appointed by the  developer  or
 7    elected  by the unit owners, shall exercise the care required
 8    of a fiduciary of the unit owners.
 9        The collection of assessments  from  unit  owners  by  an
10    association,  board  of  managers  or  their  duly authorized
11    agents shall not be considered acts constituting a collection
12    agency for purposes of the Collection Agency Act.
13        The provisions of this  Section  are  applicable  to  all
14    condominium instruments recorded under this Act.  Any portion
15    of   a   condominium  instrument  which  contains  provisions
16    contrary to these provisions shall be void as against  public
17    policy  and  ineffective.   Any such instrument that fails to
18    contain the provisions required  by  this  Section  shall  be
19    deemed to incorporate such provisions by operation of law.
20    (Source: P.A. 91-195, eff. 7-20-99.)

21        (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
22        Sec. 18.5.  Master Associations.
23        (a)  If the declaration, other condominium instrument, or
24    other  duly recorded covenants provide that any of the powers
25    of the unit owners associations are to be exercised by or may
26    be delegated to a  nonprofit  corporation  or  unincorporated
27    association that exercises those or other powers on behalf of
28    one  or  more  condominiums,  or  for the benefit of the unit
29    owners of one  or  more  condominiums,  such  corporation  or
30    association shall be a master association.
31        (b)  There  shall  be  included in the declaration, other
32    condominium instruments, or  other  duly  recorded  covenants
33    establishing  the powers and duties of the master association
 
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 1    the provisions set forth in subsections (c) through (h).
 2        In interpreting subsections (c) through (h),  the  courts
 3    should   interpret   these   provisions   so  that  they  are
 4    interpreted consistently with the similar parallel provisions
 5    found in other parts of this Act.
 6        (c)  Meetings and finances.
 7             (1)  Each unit owner of a condominium subject to the
 8        authority of the board of the  master  association  shall
 9        receive,  at  least 30 days prior to the adoption thereof
10        by the board of the master association,  a  copy  of  the
11        proposed annual budget.
12             (2)  The  board  of  the  master  association  shall
13        annually  supply  to  all  unit  owners  of  condominiums
14        subject  to  the  authority  of  the  board of the master
15        association an itemized accounting of the common expenses
16        for  the  preceding  year  actually  incurred  or   paid,
17        together  with  a  tabulation  of  the  amounts collected
18        pursuant to the budget or assessment, and showing the net
19        excess  or  deficit  of  income  over  expenditures  plus
20        reserves.
21             (3)  Each unit owner of a condominium subject to the
22        authority of the board of the  master  association  shall
23        receive  written  notice mailed or delivered no less than
24        10 and no more than 30 days prior to any meeting  of  the
25        board  of  the master association concerning the adoption
26        of the proposed annual budget  or  any  increase  in  the
27        budget, or establishment of an assessment.
28             (4)  Meetings of the board of the master association
29        shall  be open to any unit owner in a condominium subject
30        to the authority of the board of the master  association,
31        except for the portion of any meeting held:
32                  (A)  to   discuss  litigation  when  an  action
33             against  or  on  behalf  of  the  particular  master
34             association has been filed and is pending in a court
 
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 1             or administrative tribunal, or when the board of the
 2             master association finds  that  such  an  action  is
 3             probable or imminent,
 4                  (B)  to    consider    information    regarding
 5             appointment, employment or dismissal of an employee,
 6             or
 7                  (C)  to   discuss   violations   of  rules  and
 8             regulations of  the  master  association  or  unpaid
 9             common expenses owed to the master association.
10        Any  vote on these matters shall be taken at a meeting or
11        portion thereof open to any unit owner of  a  condominium
12        subject to the authority of the master association.
13             Any   unit  owner  may  record  the  proceedings  at
14        meetings required to be open by this Act by tape, film or
15        other means; the board may prescribe reasonable rules and
16        regulations to govern the right to make such  recordings.
17        Notice  of meetings shall be mailed or delivered at least
18        48 hours prior thereto, unless a written waiver  of  such
19        notice is signed by the persons entitled to notice before
20        the  meeting  is convened.  Copies of notices of meetings
21        of the board of the master association shall be posted in
22        entranceways, elevators, or other conspicuous  places  in
23        the condominium at least 48 hours prior to the meeting of
24        the  board  of the master association.  Where there is no
25        common entranceway for 7 or more units, the board of  the
26        master association may designate one or more locations in
27        the  proximity  of  these  units  where  the  notices  of
28        meetings shall be posted.
29             (5)  If  the  declaration  provides  for election by
30        unit owners of members of the board of directors  in  the
31        event  of  a  resale of a unit in the master association,
32        the purchaser of a unit from  a  seller  other  than  the
33        developer   pursuant   to  an  installment  contract  for
34        purchase shall, during such times as he or she resides in
 
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 1        the unit, be counted toward  a  quorum  for  purposes  of
 2        election  of  members  of  the  board of directors at any
 3        meeting  of  the  unit  owners  called  for  purposes  of
 4        electing members of the board, and shall have  the  right
 5        to  vote  for  the  election  of  members of the board of
 6        directors and to be elected to and serve on the board  of
 7        directors  unless the seller expressly retains in writing
 8        any or all of those rights. In no event  may  the  seller
 9        and  purchaser  both  be  counted  toward  a  quorum,  be
10        permitted  to vote for a particular office, or be elected
11        and serve on the board.   Satisfactory  evidence  of  the
12        installment  contract  shall  be  made  available  to the
13        association  or  its  agents.   For  purposes   of   this
14        subsection,  "installment  contract"  shall have the same
15        meaning as set forth in subsection (e) of  Section  1  of
16        the Dwelling Unit Installment Contract Act.
17             (6)  The  board of the master association shall have
18        the authority to  establish  and  maintain  a  system  of
19        master metering of public utility services and to collect
20        payments   in   connection   therewith,  subject  to  the
21        requirements of the  Tenant  Utility  Payment  Disclosure
22        Act.
23             (7)  The board of the master association or a common
24        interest  community  association  shall  have  the power,
25        after notice and an opportunity to be heard, to levy  and
26        collect  reasonable  fines from members for violations of
27        the declaration, bylaws, and rules and regulations of the
28        master  association  or  the  common  interest  community
29        association.  Nothing contained in this  subdivision  (7)
30        shall give rise to a statutory lien for unpaid fines.
31        No  action  shall  be  taken  by  the board of the master
32    association  or  a  common  interest  community   association
33    concerning  the  levying  or assessing of any fine or penalty
34    against a unit owner unless proper notice has been  given  to
 
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 1    the  owner  and  the owner has been given an opportunity at a
 2    meeting of the board of the master association  or  a  common
 3    interest   community  association  to  dispute  the  fine  or
 4    penalty.  The notice must consist of: (i) the time and  place
 5    of  the  meeting  at  which  the  fine  or  penalty  will  be
 6    discussed;  (ii)  the amount of the proposed penalty or fine;
 7    (iii) the reason for the proposed fine  or  penalty;  (iv)  a
 8    notification  that  all  interested persons shall be given an
 9    opportunity to be heard; and (v) a statement  that  the  unit
10    owner  may  be  represented  by  counsel at the meeting.  The
11    notice shall be sent by certified mail not more than 30  days
12    and not less than 10 days prior to the meeting.
13        (d)  Records.
14             (1)  The  board  of  the  master  association  shall
15        maintain  the  following  records  of the association and
16        make  them  available  for  examination  and  copying  at
17        convenient hours of weekdays by  any  unit  owners  in  a
18        condominium  subject  to  the  authority  of the board or
19        their mortgagees and  their  duly  authorized  agents  or
20        attorneys:
21                  (i)  Copies  of the recorded declaration, other
22             condominium   instruments,   other   duly   recorded
23             covenants and bylaws and any amendments, articles of
24             incorporation  of  the  master  association,  annual
25             reports and any rules and regulations adopted by the
26             master association or its board shall be  available.
27             Prior to the organization of the master association,
28             the  developer shall maintain and make available the
29             records set forth in  this  subdivision  (d)(1)  for
30             examination and copying.
31                  (ii)  Detailed    and   accurate   records   in
32             chronological order of the receipts and expenditures
33             affecting the common areas, specifying and itemizing
34             the maintenance and repair expenses  of  the  common
 
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 1             areas and any other expenses incurred, and copies of
 2             all  contracts,  leases, or other agreements entered
 3             into by the master association, shall be maintained.
 4                  (iii)  The  minutes  of  all  meetings  of  the
 5             master association  and  the  board  of  the  master
 6             association  shall be maintained for not less than 7
 7             years.
 8                  (iv)  Ballots and proxies related  thereto,  if
 9             any,  for  any  election  held  for the board of the
10             master association and for any other  matters  voted
11             on  by  the  unit owners shall be maintained for not
12             less than one year.
13                  (v)  Such   other   records   of   the   master
14             association  as  are  available  for  inspection  by
15             members of a not-for-profit corporation pursuant  to
16             Section   107.75  of  the  General  Not  For  Profit
17             Corporation Act of 1986 shall be maintained.
18                  (vi)  With respect to units  owned  by  a  land
19             trust,  if  a trustee designates in writing a person
20             to cast votes on  behalf  of  the  unit  owner,  the
21             designation   shall   remain   in   effect  until  a
22             subsequent document is filed with the association.
23             (2)  Where  a  request  for   records   under   this
24        subsection is made in writing to the board of managers or
25        its  agent, failure to provide the requested record or to
26        respond within 30 days shall be deemed a  denial  by  the
27        board of directors.
28             (3)  A  reasonable  fee may be charged by the master
29        association or its board for the cost of copying.
30             (4)  If the board  of  directors  fails  to  provide
31        records   properly  requested  under  subdivision  (d)(1)
32        within the time period provided  in  subdivision  (d)(2),
33        the  unit owner may seek appropriate relief, including an
34        award of attorney's fees and costs.
 
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 1        (e)  The board  of  directors  shall  have  standing  and
 2    capacity  to  act in a representative capacity in relation to
 3    matters involving the common areas of the master  association
 4    or  more than one unit, on behalf of the unit owners as their
 5    interests may appear.
 6        (f)  Administration of property prior to election of  the
 7    initial board of directors.
 8             (1)  Until  the  election, by the unit owners or the
 9        boards  of  managers  of   the   underlying   condominium
10        associations,  of  the  initial  board  of directors of a
11        master association whose declaration is  recorded  on  or
12        after  August  10, 1990, the same rights, titles, powers,
13        privileges,  trusts,  duties  and  obligations  that  are
14        vested in or imposed upon the board of directors by  this
15        Act or in the declaration or other duly recorded covenant
16        shall be held and performed by the developer.
17             (2)  The  election of the initial board of directors
18        of a master association whose declaration is recorded  on
19        or  after  August  10,  1990,  by  the unit owners or the
20        boards  of  managers  of   the   underlying   condominium
21        associations,  shall be held not later than 60 days after
22        the conveyance by the developer of 75% of the units, or 3
23        years after the recording of the  declaration,  whichever
24        is  earlier.   The  developer shall give at least 21 days
25        notice of the meeting  to  elect  the  initial  board  of
26        directors  and  shall  upon  request  provide to any unit
27        owner, within 3 working days of the request,  the  names,
28        addresses,  and weighted vote of each unit owner entitled
29        to vote at  the  meeting.   Any  unit  owner  shall  upon
30        receipt   of  the  request  be  provided  with  the  same
31        information, within 10 days of the request, with  respect
32        to  each subsequent meeting to elect members of the board
33        of directors.
34             (3)  If the initial board of directors of  a  master
 
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 1        association  whose  declaration  is  recorded on or after
 2        August 10, 1990 is not elected by the unit owners or  the
 3        members  of  the underlying condominium association board
 4        of  managers  at  the  time  established  in  subdivision
 5        (f)(2), the developer shall  continue  in  office  for  a
 6        period  of  30  days,  whereupon  written  notice  of his
 7        resignation shall be sent to all of the  unit  owners  or
 8        members  of  the underlying condominium board of managers
 9        entitled to vote at an election for members of the  board
10        of directors.
11             (4)  Within  60  days  following  the  election of a
12        majority of  the  board  of  directors,  other  than  the
13        developer, by unit owners, the developer shall deliver to
14        the board of directors:
15                  (i)  All  original  documents  as  recorded  or
16             filed    pertaining    to    the    property,    its
17             administration,  and  the  association,  such as the
18             declaration,  articles   of   incorporation,   other
19             instruments,  annual  reports,  minutes,  rules  and
20             regulations,   and   contracts,   leases,  or  other
21             agreements entered into by the association.  If  any
22             original  documents  are  unavailable, a copy may be
23             provided if certified by affidavit of the developer,
24             or an officer or agent of the developer, as being  a
25             complete  copy  of  the  actual document recorded or
26             filed.
27                  (ii)  A detailed accounting by  the  developer,
28             setting  forth the source and nature of receipts and
29             expenditures  in  connection  with  the  management,
30             maintenance and operation of the property, copies of
31             all insurance policies, and a list of any  loans  or
32             advances to the association which are outstanding.
33                  (iii)  Association funds, which shall have been
34             at all times segregated from any other moneys of the
 
                            -13-     LRB093 00012 LCB 00012 b
 1             developer.
 2                  (iv)  A   schedule  of  all  real  or  personal
 3             property, equipment and fixtures  belonging  to  the
 4             association,  including  documents  transferring the
 5             property, warranties,  if  any,  for  all  real  and
 6             personal   property  and  equipment,   deeds,  title
 7             insurance policies, and all tax bills.
 8                  (v)  A list of all  litigation,  administrative
 9             action  and  arbitrations involving the association,
10             any notices of governmental bodies involving actions
11             taken  or  which  may  be   taken   concerning   the
12             association,  engineering and architectural drawings
13             and specifications as approved by  any  governmental
14             authority,  all other documents filed with any other
15             governmental     authority,     all     governmental
16             certificates, correspondence  involving  enforcement
17             of  any  association  requirements,  copies  of  any
18             documents   relating   to  disputes  involving  unit
19             owners, and originals of all documents  relating  to
20             everything listed in this subparagraph.
21                  (vi)  If  the  developer  fails to fully comply
22             with this paragraph (4) within the 60 days  provided
23             and  fails to fully comply within 10 days of written
24             demand mailed by registered or certified mail to his
25             or her last known address, the board  may  bring  an
26             action to compel compliance with this paragraph (4).
27             If   the  court  finds  that  any  of  the  required
28             deliveries were not made within the required period,
29             the  board  shall  be  entitled   to   recover   its
30             reasonable  attorneys'  fees and costs incurred from
31             and after the date  of  expiration  of  the  10  day
32             demand.
33             (5)  With  respect  to  any master association whose
34        declaration is recorded on or after August 10, 1990,  any
 
                            -14-     LRB093 00012 LCB 00012 b
 1        contract,  lease,  or  other  agreement made prior to the
 2        election of a majority of the board  of  directors  other
 3        than  the  developer  by  or  on behalf of unit owners or
 4        underlying condominium associations, the  association  or
 5        the  board  of  directors,  which extends for a period of
 6        more than 2 years from the recording of the  declaration,
 7        shall  be subject to cancellation by more than 1/2 of the
 8        votes of the unit owners, other than the developer,  cast
 9        at  a  special meeting of members called for that purpose
10        during a period of 90 days prior to the expiration of the
11        2 year period if the board of managers is elected by  the
12        unit owners, otherwise by more than 1/2 of the underlying
13        condominium board of managers.  At least 60 days prior to
14        the  expiration  of  the  2  year  period,  the  board of
15        directors, or, if the  board  is  still  under  developer
16        control,  then  the  board  of  managers or the developer
17        shall send  notice to  every  unit  owner  or  underlying
18        condominium  board  of  managers,  notifying them of this
19        provision, of what contracts, leases and other agreements
20        are affected, and of the procedure for calling a  meeting
21        of  the  unit  owners  or  for  action  by the underlying
22        condominium board of managers for the purpose  of  acting
23        to  terminate such contracts, leases or other agreements.
24        During the 90 day period the other party to the contract,
25        lease, or other agreement shall also have  the  right  of
26        cancellation.
27             (6)  The  statute  of limitations for any actions in
28        law or equity which  the  master  association  may  bring
29        shall   not  begin  to  run  until  the  unit  owners  or
30        underlying condominium board of managers have  elected  a
31        majority of the members of the board of directors.
32        (g)  In  the  event  of  any resale of a unit in a master
33    association by a unit owner other  than  the  developer,  the
34    owner shall obtain from the board of directors and shall make
 
                            -15-     LRB093 00012 LCB 00012 b
 1    available  for  inspection to the prospective purchaser, upon
 2    demand, the following:
 3             (1)  A copy of the  declaration,  other  instruments
 4        and any rules and regulations.
 5             (2)  A statement of any liens, including a statement
 6        of  the  account of the unit setting forth the amounts of
 7        unpaid assessments and other charges due and owing.
 8             (3)  A  statement  of   any   capital   expenditures
 9        anticipated  by  the  association  within  the current or
10        succeeding 2 fiscal years.
11             (4)  A statement of the status  and  amount  of  any
12        reserve for replacement fund and any portion of such fund
13        earmarked  for  any  specified  project  by  the board of
14        directors.
15             (5)  A copy of the statement of financial  condition
16        of  the  association  for  the last fiscal year for which
17        such a statement is available.
18             (6)  A statement of the status of any pending  suits
19        or judgments in which the association is a party.
20             (7)  A   statement   setting  forth  what  insurance
21        coverage  is  provided  for  all  unit  owners   by   the
22        association.
23             (8)  A    statement   that   any   improvements   or
24        alterations made to the unit, or any part of  the  common
25        areas  assigned  thereto,  by the prior unit owner are in
26        good  faith  believed  to  be  in  compliance  with   the
27        declaration of the master association.
28        The  principal officer of the unit owner's association or
29    such  other  officer  as  is  specifically  designated  shall
30    furnish the above information when  requested  to  do  so  in
31    writing, within 30 days of receiving the request.
32        A  reasonable  fee covering the direct out-of-pocket cost
33    of copying and providing such information may be  charged  by
34    the  association or its board of directors to the unit seller
 
                            -16-     LRB093 00012 LCB 00012 b
 1    for providing the information.
 2        (h)  Errors and omissions.
 3             (1)  If  there  is  an  omission  or  error  in  the
 4        declaration   or   other   instrument   of   the   master
 5        association, the master association may correct the error
 6        or omission by an amendment to the declaration  or  other
 7        instrument, as may be required to conform it to this Act,
 8        to  any  other applicable statute, or to the declaration.
 9        The amendment shall be adopted by vote of  two-thirds  of
10        the  members  of  the board of directors or by a majority
11        vote of the unit owners at  a  meeting  called  for  that
12        purpose,  unless the Act or the declaration of the master
13        association specifically provides for greater percentages
14        or different procedures.
15             (2)  If, through a scrivener's error, a unit has not
16        been designated as owning an appropriate undivided  share
17        of the common areas or does not bear an appropriate share
18        of  the common expenses, or if all of the common expenses
19        or all of the common elements in the condominium have not
20        been distributed in the  declaration,  so  that  the  sum
21        total  of  the  shares  of  common  areas which have been
22        distributed or the sum total of the shares of the  common
23        expenses  fail  to equal 100%, or if it appears that more
24        than 100% of the common elements or common expenses  have
25        been distributed, the error may be corrected by operation
26        of  law  by  filing  an  amendment  to  the  declaration,
27        approved  by  vote  of  two-thirds  of the members of the
28        board of directors or a majority vote of the unit  owners
29        at   a   meeting   called   for   that   purpose,   which
30        proportionately  adjusts all percentage interests so that
31        the total  is  equal  to  100%,  unless  the  declaration
32        specifically   provides  for  a  different  procedure  or
33        different percentage vote by the owners of the units  and
34        the  owners of mortgages thereon affected by modification
 
                            -17-     LRB093 00012 LCB 00012 b
 1        being made in the undivided interest in the common areas,
 2        the number of votes in the unit owners association or the
 3        liability for common expenses appertaining to the unit.
 4             (3)  If an omission or error or a scrivener's  error
 5        in  the  declaration  or other instrument is corrected by
 6        vote of  two-thirds  of  the  members  of  the  board  of
 7        directors   pursuant  to  the  authority  established  in
 8        subdivisions (h)(1) or (h)(2) of this Section, the board,
 9        upon written petition by unit  owners  with  20%  of  the
10        votes  of  the  association or resolutions adopted by the
11        board  of  managers  or  board  of   directors   of   the
12        condominium  and  common  interest community associations
13        which select 20% of the members of the board of directors
14        of  the  master  association,  whichever  is  applicable,
15        received within 30 days of the board action, shall call a
16        meeting  of  the  unit  owners  or  the  boards  of   the
17        condominium  and  common  interest community associations
18        which select members of the board  of  directors  of  the
19        master  association  within  30 days of the filing of the
20        petition  or  receipt  of  the  condominium  and   common
21        interest community association resolution to consider the
22        board action.  Unless a majority of the votes of the unit
23        owners  of  the  association  are  cast at the meeting to
24        reject the action, or  board  of  managers  or  board  of
25        directors  of  condominium  and common interest community
26        associations which select over 50% of the members of  the
27        board  of  the master association adopt resolutions prior
28        to the meeting rejecting  the  action  of  the  board  of
29        directors  of  the  master  association,  it  is ratified
30        whether or not a quorum is present.
31             (4)  The procedures for amendments set forth in this
32        subsection (h) cannot be used if such an amendment  would
33        materially  or  adversely  affect  property rights of the
34        unit owners unless the affected unit  owners  consent  in
 
                            -18-     LRB093 00012 LCB 00012 b
 1        writing.   This  Section  does not restrict the powers of
 2        the  association  to  otherwise  amend  the  declaration,
 3        bylaws, or other condominium instruments, but  authorizes
 4        a simple process of amendment requiring a lesser vote for
 5        the  purpose  of correcting defects, errors, or omissions
 6        when the property rights  of  the  unit  owners  are  not
 7        materially or adversely affected.
 8             (5)  If  there  is  an  omission  or  error  in  the
 9        declaration   or   other  instruments  that  may  not  be
10        corrected  by  an  amendment  procedure  set   forth   in
11        subdivision  (h)(1)  or  (h)(2) of this Section, then the
12        circuit  court  in  the  county  in  which   the   master
13        association  is located shall have jurisdiction to hear a
14        petition of one or more of the unit owners thereon or  of
15        the  association,  to  correct the error or omission, and
16        the action may be a class action.  The court may  require
17        that  one  or  more  methods  of  correcting the error or
18        omission be submitted to the unit owners to determine the
19        most acceptable  correction.   All  unit  owners  in  the
20        association  must  be  joined  as  parties to the action.
21        Service of process on owners may be by  publication,  but
22        the   plaintiff   shall   furnish  all  unit  owners  not
23        personally  served  with  process  with  copies  of   the
24        petition  and  final  judgment  of the court by certified
25        mail, return  receipt  requested,  at  their  last  known
26        address.
27             (6)  Nothing  contained  in  this  Section  shall be
28        construed to invalidate any provision  of  a  declaration
29        authorizing the developer to amend an instrument prior to
30        the  latest  date on which the initial membership meeting
31        of the unit owners must be held, whether or  not  it  has
32        actually   been   held,  to  bring  the  instrument  into
33        compliance with the legal  requirements  of  the  Federal
34        National  Mortgage  Association,  the  Federal  Home Loan
 
                            -19-     LRB093 00012 LCB 00012 b
 1        Mortgage Corporation, the Federal Housing Administration,
 2        the  United  States  Veterans  Administration  or   their
 3        respective successors and assigns.
 4        (i)  The  provisions  of  subsections (c) through (h) are
 5    applicable   to   all   declarations,    other    condominium
 6    instruments,  and  other duly recorded covenants establishing
 7    the powers and duties  of  the  master  association  recorded
 8    under   this  Act.   Any  portion  of  a  declaration,  other
 9    condominium  instrument,  or  other  duly  recorded  covenant
10    establishing the powers and duties of  a  master  association
11    which  contains  provisions  contrary  to  the  provisions of
12    subsection (c) through (h) shall be void  as  against  public
13    policy  and  ineffective.  Any declaration, other condominium
14    instrument, or other duly recorded covenant establishing  the
15    powers  and  duties  of the master association which fails to
16    contain the provisions required by  subsections  (c)  through
17    (h)  shall  be  deemed  to  incorporate  such  provisions  by
18    operation of law.
19        (j)  The  provisions  of  subsections (c) through (h) are
20    applicable to all common interest community associations  and
21    their  unit owners for common interest community associations
22    which are subject to the provisions of Section 9-102(a)(8) of
23    the  Code  of  Civil  Procedure.   For   purposes   of   this
24    subsection,  the  terms "common interest community" and "unit
25    owners" shall have the same meaning as set forth  in  Section
26    9-102(c) of the Code of Civil Procedure.
27    (Source: P.A. 90-229, eff. 7-25-97; 91-616, eff. 8-19-99.)

28        (765 ILCS 605/29.5 new)
29        Section.  29.5. Display of flag.  A unit owner shall have
30    the right, subject to the  restrictions  set  forth  in  this
31    Section,  to  display an American flag on the front of his or
32    her unit.  The condominium instrument may  impose  reasonable
33    restrictions  regarding  the  size,  location,  and manner of
 
                            -20-     LRB093 00012 LCB 00012 b
 1    display but may not otherwise restrict  the  display  of  the
 2    American flag on the unit owner's property.

 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming law.