97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB4560

 

Introduced 2/1/2012, by Rep. André M. Thapedi

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 160/1-45
765 ILCS 605/9  from Ch. 30, par. 309
765 ILCS 605/18.5  from Ch. 30, par. 318.5

    Amends the Common Interest Association Act. Provides that the purchaser of a unit of a common interest community, other than a mortgagee, must pay the common expenses for the unit, including attorneys' fees, that would have been due during the 12 months before a foreclosure judicial sale or the execution of a deed in lieu of foreclosure and if common expenses are paid at any time, the purchaser, other than the mortgagee, has no obligation to pay any common expenses that accrued before the purchaser acquired title. Amends the Condominium Property Act. Provides that the purchaser of a condominium unit at a judicial foreclosure sale, other than a mortgagee, or a purchaser who acquires title from a mortgagee following a judicial foreclosure sale or the execution of deed in lieu of foreclosure must pay the proportionate share of the unit's common expenses, including attorneys' fees, that would have been due during the 12 months before a judicial sale or execution of a deed in lieu of foreclosure (instead of must pay common expenses, without attorney's fees included, for the 6 months incurred immediately before the filing of an action to collect common expenses) and if the common expenses are paid, the purchaser, other than the mortgagee, has no obligation to pay any common expenses that accrued before the purchaser acquired title. Makes other changes. Effective July 1, 2012.


LRB097 15076 AJO 60167 b

 

 

A BILL FOR

 

HB4560LRB097 15076 AJO 60167 b

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

 

 

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1plus reserves or (ii) provide a consolidated annual independent
2audit report of the financial status of all fund accounts
3within the association.
4    (c) If an adopted budget or any separate assessment adopted
5by the board would result in the sum of all regular and
6separate assessments payable in the current fiscal year
7exceeding 115% of the sum of all regular and separate
8assessments payable during the preceding fiscal year, the
9common interest community association, upon written petition
10by unit owners with 20% of the votes of the association
11delivered to the board within 14 days of the board action,
12shall call a meeting of the unit owners within 30 days of the
13date of delivery of the petition to consider the budget or
14separate assessment; unless a majority of the total votes of
15the unit owners are cast at the meeting to reject the budget or
16separate assessment, it shall be deemed ratified.
17    (d) Any common expense not set forth in the budget or any
18increase in assessments over the amount adopted in the budget
19shall be separately assessed against all unit owners.
20    (e) Separate assessments for expenditures relating to
21emergencies or mandated by law may be adopted by the board
22without being subject to unit owner approval or the provisions
23of subsection (c) or (f) of this Section. As used herein,
24"emergency" means an immediate danger to the structural
25integrity of the common areas or to the life, health, safety,
26or property of the unit owners.

 

 

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1    (f) Assessments for additions and alterations to the common
2areas or to association-owned property not included in the
3adopted annual budget, shall be separately assessed and are
4subject to approval of two-thirds of the total members at a
5meeting called for that purpose.
6    (g) The board may adopt separate assessments payable over
7more than one fiscal year. With respect to multi-year
8assessments not governed by subsections (e) and (f) of this
9Section, the entire amount of the multi-year assessment shall
10be deemed considered and authorized in the first fiscal year in
11which the assessment is approved.
12    (h) The board of a common interest community association
13shall have the authority to establish and maintain a system of
14master metering of public utility services to collect payments
15in conjunction therewith, subject to the requirements of the
16Tenant Utility Payment Disclosure Act.
17    (i) Notwithstanding any other provision of this Act, the
18purchaser of a unit of a common interest community at a
19judicial foreclosure sale, other than a mortgagee, who takes
20title to a unit of a common interest community pursuant to a
21court order or a purchaser who acquires title from a mortgagee
22following a judicial foreclosure sale or conveyance of a unit
23pursuant to a deed in lieu of foreclosure shall have the duty
24to pay the proportionate share, if any, of the common expenses
25for the unit, including but not limited to attorneys' fees
26levied pursuant to subsection (k), that would have become due

 

 

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1in the absence of any acceleration during the 12 months
2immediately preceding a judicial foreclosure sale or execution
3of a deed in lieu of foreclosure. If the 12 months of common
4expenses are paid at any time, the purchaser, other than the
5mortgagee, shall have no obligation to pay any common expenses
6that accrued before he or she acquired title.
7    The notice of sale of a unit of a common interest community
8under subsection (c) of Section 15-1507 of the Code of Civil
9Procedure shall state that the purchaser of the unit other than
10a mortgagee shall pay the common expenses, including but not
11limited to attorneys' fees levied pursuant to subsection (k),
12required by this Section.
13    The statement of assessment account issued by the
14association to a unit owner and the disclosure statement issued
15to a prospective purchaser under paragraph (2) of subsection
16(d) of Section 1-35 shall state the amount of common expenses,
17if any, including but not limited to attorneys' fees levied
18pursuant to subsection (k), required by this Section and
19paragraph (2) of subsection (d) of Section 1-35.
20    (j) In the event of any default by any unit owner, his or
21her tenant, invitee, or guest in the performance of the unit
22owner's obligations under this Act or under the Declaration,
23bylaws, or the rules and regulations of the board of managers,
24the board of managers or its agents shall have such rights and
25remedies as provided in the Act or the common interest
26community's instruments including the right to maintain an

 

 

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1action for possession against the defaulting unit owner or his
2or her tenant for the benefit of all the other unit owners in
3the manner prescribed by Article IX of the Code of Civil
4Procedure.
5    (k) Any attorneys' fees incurred by the common interest
6community arising out of a default by any unit owner, his or
7her tenant, invitee, or guest in the performance of any of the
8provisions of the common interest community's instruments,
9rules and regulations, or any applicable statute or ordinance
10shall be added to, and deemed a part of, his or her respective
11share of the common expense.
12(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
13    Section 10. The Condominium Property Act is amended by
14changing Sections 9 and 18.5 as follows:
 
15    (765 ILCS 605/9)  (from Ch. 30, par. 309)
16    Sec. 9. Sharing of expenses - Lien for nonpayment.
17    (a) All common expenses incurred or accrued prior to the
18first conveyance of a unit shall be paid by the developer, and
19during this period no common expense assessment shall be
20payable to the association. It shall be the duty of each unit
21owner including the developer to pay his proportionate share of
22the common expenses commencing with the first conveyance. The
23proportionate share shall be in the same ratio as his
24percentage of ownership in the common elements set forth in the

 

 

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1declaration.
2    (b) The condominium instruments may provide that common
3expenses for insurance premiums be assessed on a basis
4reflecting increased charges for coverage on certain units.
5    (c) Budget and reserves.
6        (1) The board of managers shall prepare and distribute
7    to all unit owners a detailed proposed annual budget,
8    setting forth with particularity all anticipated common
9    expenses by category as well as all anticipated assessments
10    and other income. The initial budget and common expense
11    assessment based thereon shall be adopted prior to the
12    conveyance of any unit. The budget shall also set forth
13    each unit owner's proposed common expense assessment.
14        (2) All budgets adopted by a board of managers on or
15    after July 1, 1990 shall provide for reasonable reserves
16    for capital expenditures and deferred maintenance for
17    repair or replacement of the common elements. To determine
18    the amount of reserves appropriate for an association, the
19    board of managers shall take into consideration the
20    following: (i) the repair and replacement cost, and the
21    estimated useful life, of the property which the
22    association is obligated to maintain, including but not
23    limited to structural and mechanical components, surfaces
24    of the buildings and common elements, and energy systems
25    and equipment; (ii) the current and anticipated return on
26    investment of association funds; (iii) any independent

 

 

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1    professional reserve study which the association may
2    obtain; (iv) the financial impact on unit owners, and the
3    market value of the condominium units, of any assessment
4    increase needed to fund reserves; and (v) the ability of
5    the association to obtain financing or refinancing.
6        (3) Notwithstanding the provisions of this subsection
7    (c), an association without a reserve requirement in its
8    condominium instruments may elect to waive in whole or in
9    part the reserve requirements of this Section by a vote of
10    2/3 of the total votes of the association. Any association
11    having elected under this paragraph (3) to waive the
12    provisions of subsection (c) may by a vote of 2/3 of the
13    total votes of the association elect to again be governed
14    by the requirements of subsection (c).
15        (4) In the event that an association elects to waive
16    all or part of the reserve requirements of this Section,
17    that fact must be disclosed after the meeting at which the
18    waiver occurs by the association in the financial
19    statements of the association and, highlighted in bold
20    print, in the response to any request of a prospective
21    purchaser for the information prescribed under Section
22    22.1; and no member of the board of managers or the
23    managing agent of the association shall be liable, and no
24    cause of action may be brought for damages against these
25    parties, for the lack or inadequacy of reserve funds in the
26    association budget.

 

 

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1    (d) (Blank).
2    (e) The condominium instruments may provide for the
3assessment, in connection with expenditures for the limited
4common elements, of only those units to which the limited
5common elements are assigned.
6    (f) Payment of any assessment shall be in amounts and at
7times determined by the board of managers.
8    (g) Lien.
9        (1) If any unit owner shall fail or refuse to make any
10    payment of the common expenses or the amount of any unpaid
11    fine when due, the amount thereof together with any
12    interest, late charges, reasonable attorney fees incurred
13    enforcing the covenants of the condominium instruments,
14    rules and regulations of the board of managers, or any
15    applicable statute or ordinance, and costs of collections
16    shall constitute a lien on the interest of the unit owner
17    in the property prior to all other liens and encumbrances,
18    recorded or unrecorded, except only (a) taxes, special
19    assessments and special taxes theretofore or thereafter
20    levied by any political subdivision or municipal
21    corporation of this State and other State or federal taxes
22    which by law are a lien on the interest of the unit owner
23    prior to preexisting recorded encumbrances thereon and (b)
24    encumbrances on the interest of the unit owner recorded
25    prior to the date of such failure or refusal which by law
26    would be a lien thereon prior to subsequently recorded

 

 

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1    encumbrances. Any action brought to extinguish the lien of
2    the association shall include the association as a party.
3        (2) With respect to encumbrances executed prior to
4    August 30, 1984 or encumbrances executed subsequent to
5    August 30, 1984 which are neither bonafide first mortgages
6    nor trust deeds and which encumbrances contain a statement
7    of a mailing address in the State of Illinois where notice
8    may be mailed to the encumbrancer thereunder, if and
9    whenever and as often as the manager or board of managers
10    shall send, by United States certified or registered mail,
11    return receipt requested, to any such encumbrancer at the
12    mailing address set forth in the recorded encumbrance a
13    statement of the amounts and due dates of the unpaid common
14    expenses with respect to the encumbered unit, then, unless
15    otherwise provided in the declaration or bylaws, the prior
16    recorded encumbrance shall be subject to the lien of all
17    unpaid common expenses with respect to the unit which
18    become due and payable within a period of 90 days after the
19    date of mailing of each such notice.
20        (3) The purchaser of a condominium unit at a judicial
21    foreclosure sale, or a mortgagee who receives title to a
22    unit by deed in lieu of foreclosure or judgment by common
23    law strict foreclosure or otherwise takes possession
24    pursuant to court order under the Illinois Mortgage
25    Foreclosure Law, shall have the duty to pay the unit's
26    proportionate share of the common expenses for the unit

 

 

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1    assessed from and after the first day of the month after
2    the date of the judicial foreclosure sale, delivery of the
3    deed in lieu of foreclosure, entry of a judgment in common
4    law strict foreclosure, or taking of possession pursuant to
5    such court order. Such payment confirms the extinguishment
6    of any lien created pursuant to paragraph (1) or (2) of
7    this subsection (g) by virtue of the failure or refusal of
8    a prior unit owner to make payment of common expenses,
9    where the judicial foreclosure sale has been confirmed by
10    order of the court, a deed in lieu thereof has been
11    accepted by the lender, or a consent judgment has been
12    entered by the court.
13        (4) Notwithstanding any other provision of this Act,
14    the The purchaser of a condominium unit at a judicial
15    foreclosure sale, other than a mortgagee, who takes title
16    to possession of a condominium unit pursuant to a court
17    order or a purchaser who acquires title from a mortgagee
18    following a judicial foreclosure sale or execution of a
19    deed in lieu of foreclosure shall have the duty to pay the
20    proportionate share, if any, of the common expenses for the
21    unit, including but not limited to attorneys' fees levied
22    pursuant to subsection (b) of Section 9.2, that which would
23    have become due in the absence of any assessment
24    acceleration during the 12 6 months immediately preceding a
25    judicial foreclosure sale or execution of a deed in lieu of
26    foreclosure institution of an action to enforce the

 

 

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1    collection of assessments, and which remain unpaid by the
2    owner during whose possession the assessments accrued. If
3    the 12 months of common expenses outstanding assessments
4    are paid at any time during any action to enforce the
5    collection of assessments, the purchaser, other than the
6    mortgagee, shall have no obligation to pay any common
7    expenses that assessments which accrued before he or she
8    acquired title.
9        (5) The notice of sale of a condominium unit under
10    subsection (c) of Section 15-1507 of the Code of Civil
11    Procedure shall state that the purchaser of the unit other
12    than a mortgagee shall pay the common expenses, including
13    but not limited to attorneys' fees levied pursuant to
14    subsection (b) of Section 9.2, required by subdivision
15    (g)(4) assessments and the legal fees required by
16    subdivisions (g)(1) and (g)(4) of Section 9 of this Act.
17    The statement of assessment account issued by the
18    association to a unit owner under subsection (i) of Section
19    18 of this Act, and the disclosure statement issued to a
20    prospective purchaser under Section 22.1 of this Act, shall
21    state the amount of common expenses the assessments and the
22    legal fees, if any, including but not limited to attorneys'
23    fees levied pursuant to subsection (b) of Section 9.2 of
24    this Act, required by subdivisions (g)(1) and (g)(4) of
25    Section 9 of this Act.
26    (h) A lien for common expenses shall be in favor of the

 

 

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1members of the board of managers and their successors in office
2and shall be for the benefit of all other unit owners. Notice
3of the lien may be recorded by the board of managers, or if the
4developer is the manager or has a majority of seats on the
5board of managers and the manager or board of managers fails to
6do so, any unit owner may record notice of the lien. Upon the
7recording of such notice the lien may be foreclosed by an
8action brought in the name of the board of managers in the same
9manner as a mortgage of real property.
10    (i) Unless otherwise provided in the declaration, the
11members of the board of managers and their successors in
12office, acting on behalf of the other unit owners, shall have
13the power to bid on the interest so foreclosed at the
14foreclosure sale, and to acquire and hold, lease, mortgage and
15convey it.
16    (j) Any encumbrancer may from time to time request in
17writing a written statement from the manager or board of
18managers setting forth the unpaid common expenses with respect
19to the unit covered by his encumbrance. Unless the request is
20complied with within 20 days, all unpaid common expenses which
21become due prior to the date of the making of such request
22shall be subordinate to the lien of the encumbrance. Any
23encumbrancer holding a lien on a unit may pay any unpaid common
24expenses payable with respect to the unit, and upon payment the
25encumbrancer shall have a lien on the unit for the amounts paid
26at the same rank as the lien of his encumbrance.

 

 

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1    (k) Nothing in Public Act 83-1271 is intended to change the
2lien priorities of any encumbrance created prior to August 30,
31984.
4(Source: P.A. 94-1049, eff. 1-1-07.)
 
5    (765 ILCS 605/18.5)  (from Ch. 30, par. 318.5)
6    Sec. 18.5. Master Associations.
7    (a) If the declaration, other condominium instrument, or
8other duly recorded covenants provide that any of the powers of
9the unit owners associations are to be exercised by or may be
10delegated to a nonprofit corporation or unincorporated
11association that exercises those or other powers on behalf of
12one or more condominiums, or for the benefit of the unit owners
13of one or more condominiums, such corporation or association
14shall be a master association.
15    (b) There shall be included in the declaration, other
16condominium instruments, or other duly recorded covenants
17establishing the powers and duties of the master association
18the provisions set forth in subsections (c) through (h).
19    In interpreting subsections (c) through (h), the courts
20should interpret these provisions so that they are interpreted
21consistently with the similar parallel provisions found in
22other parts of this Act.
23    (c) Meetings and finances.
24        (1) Each unit owner of a condominium subject to the
25    authority of the board of the master association shall

 

 

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1    receive, at least 30 days prior to the adoption thereof by
2    the board of the master association, a copy of the proposed
3    annual budget.
4        (2) The board of the master association shall annually
5    supply to all unit owners of condominiums subject to the
6    authority of the board of the master association an
7    itemized accounting of the common expenses for the
8    preceding year actually incurred or paid, together with a
9    tabulation of the amounts collected pursuant to the budget
10    or assessment, and showing the net excess or deficit of
11    income over expenditures plus reserves.
12        (3) Each unit owner of a condominium subject to the
13    authority of the board of the master association shall
14    receive written notice mailed or delivered no less than 10
15    and no more than 30 days prior to any meeting of the board
16    of the master association concerning the adoption of the
17    proposed annual budget or any increase in the budget, or
18    establishment of an assessment.
19        (4) Meetings of the board of the master association
20    shall be open to any unit owner in a condominium subject to
21    the authority of the board of the master association,
22    except for the portion of any meeting held:
23            (A) to discuss litigation when an action against or
24        on behalf of the particular master association has been
25        filed and is pending in a court or administrative
26        tribunal, or when the board of the master association

 

 

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1        finds that such an action is probable or imminent,
2            (B) to consider information regarding appointment,
3        employment or dismissal of an employee, or
4            (C) to discuss violations of rules and regulations
5        of the master association or unpaid common expenses
6        owed to the master association.
7    Any vote on these matters shall be taken at a meeting or
8    portion thereof open to any unit owner of a condominium
9    subject to the authority of the master association.
10        Any unit owner may record the proceedings at meetings
11    required to be open by this Act by tape, film or other
12    means; the board may prescribe reasonable rules and
13    regulations to govern the right to make such recordings.
14    Notice of meetings shall be mailed or delivered at least 48
15    hours prior thereto, unless a written waiver of such notice
16    is signed by the persons entitled to notice before the
17    meeting is convened. Copies of notices of meetings of the
18    board of the master association shall be posted in
19    entranceways, elevators, or other conspicuous places in
20    the condominium at least 48 hours prior to the meeting of
21    the board of the master association. Where there is no
22    common entranceway for 7 or more units, the board of the
23    master association may designate one or more locations in
24    the proximity of these units where the notices of meetings
25    shall be posted.
26        (5) If the declaration provides for election by unit

 

 

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1    owners of members of the board of directors in the event of
2    a resale of a unit in the master association, the purchaser
3    of a unit from a seller other than the developer pursuant
4    to an installment contract for purchase shall, during such
5    times as he or she resides in the unit, be counted toward a
6    quorum for purposes of election of members of the board of
7    directors at any meeting of the unit owners called for
8    purposes of electing members of the board, and shall have
9    the right to vote for the election of members of the board
10    of directors and to be elected to and serve on the board of
11    directors unless the seller expressly retains in writing
12    any or all of those rights. In no event may the seller and
13    purchaser both be counted toward a quorum, be permitted to
14    vote for a particular office, or be elected and serve on
15    the board. Satisfactory evidence of the installment
16    contract shall be made available to the association or its
17    agents. For purposes of this subsection, "installment
18    contract" shall have the same meaning as set forth in
19    subsection (e) of Section 1 of the Dwelling Unit
20    Installment Contract Act.
21        (6) The board of the master association shall have the
22    authority to establish and maintain a system of master
23    metering of public utility services and to collect payments
24    in connection therewith, subject to the requirements of the
25    Tenant Utility Payment Disclosure Act.
26        (7) The board of the master association or a common

 

 

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1    interest community association shall have the power, after
2    notice and an opportunity to be heard, to levy and collect
3    reasonable fines from members for violations of the
4    declaration, bylaws, and rules and regulations of the
5    master association or the common interest community
6    association. Nothing contained in this subdivision (7)
7    shall give rise to a statutory lien for unpaid fines.
8        (8) Other than attorney's fees, no fees pertaining to
9    the collection of a unit owner's financial obligation to
10    the Association, including fees charged by a manager or
11    managing agent, shall be added to and deemed a part of an
12    owner's respective share of the common expenses unless: (i)
13    the managing agent fees relate to the costs to collect
14    common expenses for the Association; (ii) the fees are set
15    forth in a contract between the managing agent and the
16    Association; and (iii) the authority to add the management
17    fees to an owner's respective share of the common expenses
18    is specifically stated in the declaration or bylaws of the
19    Association.
20    (d) Records.
21        (1) The board of the master association shall maintain
22    the following records of the association and make them
23    available for examination and copying at convenient hours
24    of weekdays by any unit owners in a condominium subject to
25    the authority of the board or their mortgagees and their
26    duly authorized agents or attorneys:

 

 

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1            (i) Copies of the recorded declaration, other
2        condominium instruments, other duly recorded covenants
3        and bylaws and any amendments, articles of
4        incorporation of the master association, annual
5        reports and any rules and regulations adopted by the
6        master association or its board shall be available.
7        Prior to the organization of the master association,
8        the developer shall maintain and make available the
9        records set forth in this subdivision (d)(1) for
10        examination and copying.
11            (ii) Detailed and accurate records in
12        chronological order of the receipts and expenditures
13        affecting the common areas, specifying and itemizing
14        the maintenance and repair expenses of the common areas
15        and any other expenses incurred, and copies of all
16        contracts, leases, or other agreements entered into by
17        the master association, shall be maintained.
18            (iii) The minutes of all meetings of the master
19        association and the board of the master association
20        shall be maintained for not less than 7 years.
21            (iv) Ballots and proxies related thereto, if any,
22        for any election held for the board of the master
23        association and for any other matters voted on by the
24        unit owners shall be maintained for not less than one
25        year.
26            (v) Such other records of the master association as

 

 

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1        are available for inspection by members of a
2        not-for-profit corporation pursuant to Section 107.75
3        of the General Not For Profit Corporation Act of 1986
4        shall be maintained.
5            (vi) With respect to units owned by a land trust,
6        if a trustee designates in writing a person to cast
7        votes on behalf of the unit owner, the designation
8        shall remain in effect until a subsequent document is
9        filed with the association.
10        (2) Where a request for records under this subsection
11    is made in writing to the board of managers or its agent,
12    failure to provide the requested record or to respond
13    within 30 days shall be deemed a denial by the board of
14    directors.
15        (3) A reasonable fee may be charged by the master
16    association or its board for the cost of copying.
17        (4) If the board of directors fails to provide records
18    properly requested under subdivision (d)(1) within the
19    time period provided in subdivision (d)(2), the unit owner
20    may seek appropriate relief, including an award of
21    attorney's fees and costs.
22    (e) The board of directors shall have standing and capacity
23to act in a representative capacity in relation to matters
24involving the common areas of the master association or more
25than one unit, on behalf of the unit owners as their interests
26may appear.

 

 

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1    (f) Administration of property prior to election of the
2initial board of directors.
3        (1) Until the election, by the unit owners or the
4    boards of managers of the underlying condominium
5    associations, of the initial board of directors of a master
6    association whose declaration is recorded on or after
7    August 10, 1990, the same rights, titles, powers,
8    privileges, trusts, duties and obligations that are vested
9    in or imposed upon the board of directors by this Act or in
10    the declaration or other duly recorded covenant shall be
11    held and performed by the developer.
12        (2) The election of the initial board of directors of a
13    master association whose declaration is recorded on or
14    after August 10, 1990, by the unit owners or the boards of
15    managers of the underlying condominium associations, shall
16    be held not later than 60 days after the conveyance by the
17    developer of 75% of the units, or 3 years after the
18    recording of the declaration, whichever is earlier. The
19    developer shall give at least 21 days notice of the meeting
20    to elect the initial board of directors and shall upon
21    request provide to any unit owner, within 3 working days of
22    the request, the names, addresses, and weighted vote of
23    each unit owner entitled to vote at the meeting. Any unit
24    owner shall upon receipt of the request be provided with
25    the same information, within 10 days of the request, with
26    respect to each subsequent meeting to elect members of the

 

 

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1    board of directors.
2        (3) If the initial board of directors of a master
3    association whose declaration is recorded on or after
4    August 10, 1990 is not elected by the unit owners or the
5    members of the underlying condominium association board of
6    managers at the time established in subdivision (f)(2), the
7    developer shall continue in office for a period of 30 days,
8    whereupon written notice of his resignation shall be sent
9    to all of the unit owners or members of the underlying
10    condominium board of managers entitled to vote at an
11    election for members of the board of directors.
12        (4) Within 60 days following the election of a majority
13    of the board of directors, other than the developer, by
14    unit owners, the developer shall deliver to the board of
15    directors:
16            (i) All original documents as recorded or filed
17        pertaining to the property, its administration, and
18        the association, such as the declaration, articles of
19        incorporation, other instruments, annual reports,
20        minutes, rules and regulations, and contracts, leases,
21        or other agreements entered into by the association. If
22        any original documents are unavailable, a copy may be
23        provided if certified by affidavit of the developer, or
24        an officer or agent of the developer, as being a
25        complete copy of the actual document recorded or filed.
26            (ii) A detailed accounting by the developer,

 

 

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1        setting forth the source and nature of receipts and
2        expenditures in connection with the management,
3        maintenance and operation of the property, copies of
4        all insurance policies, and a list of any loans or
5        advances to the association which are outstanding.
6            (iii) Association funds, which shall have been at
7        all times segregated from any other moneys of the
8        developer.
9            (iv) A schedule of all real or personal property,
10        equipment and fixtures belonging to the association,
11        including documents transferring the property,
12        warranties, if any, for all real and personal property
13        and equipment, deeds, title insurance policies, and
14        all tax bills.
15            (v) A list of all litigation, administrative
16        action and arbitrations involving the association, any
17        notices of governmental bodies involving actions taken
18        or which may be taken concerning the association,
19        engineering and architectural drawings and
20        specifications as approved by any governmental
21        authority, all other documents filed with any other
22        governmental authority, all governmental certificates,
23        correspondence involving enforcement of any
24        association requirements, copies of any documents
25        relating to disputes involving unit owners, and
26        originals of all documents relating to everything

 

 

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1        listed in this subparagraph.
2            (vi) If the developer fails to fully comply with
3        this paragraph (4) within the 60 days provided and
4        fails to fully comply within 10 days of written demand
5        mailed by registered or certified mail to his or her
6        last known address, the board may bring an action to
7        compel compliance with this paragraph (4). If the court
8        finds that any of the required deliveries were not made
9        within the required period, the board shall be entitled
10        to recover its reasonable attorneys' fees and costs
11        incurred from and after the date of expiration of the
12        10 day demand.
13        (5) With respect to any master association whose
14    declaration is recorded on or after August 10, 1990, any
15    contract, lease, or other agreement made prior to the
16    election of a majority of the board of directors other than
17    the developer by or on behalf of unit owners or underlying
18    condominium associations, the association or the board of
19    directors, which extends for a period of more than 2 years
20    from the recording of the declaration, shall be subject to
21    cancellation by more than 1/2 of the votes of the unit
22    owners, other than the developer, cast at a special meeting
23    of members called for that purpose during a period of 90
24    days prior to the expiration of the 2 year period if the
25    board of managers is elected by the unit owners, otherwise
26    by more than 1/2 of the underlying condominium board of

 

 

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1    managers. At least 60 days prior to the expiration of the 2
2    year period, the board of directors, or, if the board is
3    still under developer control, then the board of managers
4    or the developer shall send notice to every unit owner or
5    underlying condominium board of managers, notifying them
6    of this provision, of what contracts, leases and other
7    agreements are affected, and of the procedure for calling a
8    meeting of the unit owners or for action by the underlying
9    condominium board of managers for the purpose of acting to
10    terminate such contracts, leases or other agreements.
11    During the 90 day period the other party to the contract,
12    lease, or other agreement shall also have the right of
13    cancellation.
14        (6) The statute of limitations for any actions in law
15    or equity which the master association may bring shall not
16    begin to run until the unit owners or underlying
17    condominium board of managers have elected a majority of
18    the members of the board of directors.
19    (g) In the event of any resale of a unit in a master
20association by a unit owner other than the developer, the owner
21shall obtain from the board of directors and shall make
22available for inspection to the prospective purchaser, upon
23demand, the following:
24        (1) A copy of the declaration, other instruments and
25    any rules and regulations.
26        (2) A statement of any liens, including a statement of

 

 

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1    the account of the unit setting forth the amounts of unpaid
2    assessments and other charges due and owing.
3        (3) A statement of any capital expenditures
4    anticipated by the association within the current or
5    succeeding 2 fiscal years.
6        (4) A statement of the status and amount of any reserve
7    for replacement fund and any portion of such fund earmarked
8    for any specified project by the board of directors.
9        (5) A copy of the statement of financial condition of
10    the association for the last fiscal year for which such a
11    statement is available.
12        (6) A statement of the status of any pending suits or
13    judgments in which the association is a party.
14        (7) A statement setting forth what insurance coverage
15    is provided for all unit owners by the association.
16        (8) A statement that any improvements or alterations
17    made to the unit, or any part of the common areas assigned
18    thereto, by the prior unit owner are in good faith believed
19    to be in compliance with the declaration of the master
20    association.
21    The principal officer of the unit owner's association or
22such other officer as is specifically designated shall furnish
23the above information when requested to do so in writing,
24within 30 days of receiving the request.
25    A reasonable fee covering the direct out-of-pocket cost of
26copying and providing such information may be charged by the

 

 

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1association or its board of directors to the unit seller for
2providing the information.
3    (g-1) Notwithstanding any other provision of this Act, the
4The purchaser of a unit of a master association common interest
5community at a judicial foreclosure sale, other than a
6mortgagee, who takes title to possession of a unit of a master
7association common interest community pursuant to a court order
8or a purchaser who acquires title from a mortgagee following a
9judicial foreclosure sale or conveyance of a unit pursuant to a
10deed in lieu of foreclosure shall have the duty to pay the
11proportionate share, if any, of the common expenses for the
12unit, including but not limited to attorneys levied pursuant to
13subsection (b) of Section 9.2 of this Act, that would have
14become due in the absence of any assessment acceleration during
15the 12 6 months immediately preceding a judicial foreclosure
16sale or execution of deed in lieu of foreclosure institution of
17an action to enforce the collection of assessments and the
18court costs incurred by the association in an action to enforce
19the collection that remain unpaid by the owner during whose
20possession the assessments accrued. If the 12 months of common
21expenses outstanding assessments and the court costs incurred
22by the association in an action to enforce the collection are
23paid at any time during any action to enforce the collection of
24assessments, the purchaser, other than the mortgagee, shall
25have no obligation to pay any common expense assessments that
26accrued before he or she acquired title. The notice of sale of

 

 

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1a unit of a master association common interest community under
2subsection (c) of Section 15-1507 of the Code of Civil
3Procedure shall state that the purchaser of the unit other than
4a mortgagee shall pay the common expenses, including but not
5limited to attorneys' fees levied pursuant to subsection (b) of
6Section 9.2 of this Act assessments and court costs required by
7this subsection (g-1).
8    (h) Errors and omissions.
9        (1) If there is an omission or error in the declaration
10    or other instrument of the master association, the master
11    association may correct the error or omission by an
12    amendment to the declaration or other instrument, as may be
13    required to conform it to this Act, to any other applicable
14    statute, or to the declaration. The amendment shall be
15    adopted by vote of two-thirds of the members of the board
16    of directors or by a majority vote of the unit owners at a
17    meeting called for that purpose, unless the Act or the
18    declaration of the master association specifically
19    provides for greater percentages or different procedures.
20        (2) If, through a scrivener's error, a unit has not
21    been designated as owning an appropriate undivided share of
22    the common areas or does not bear an appropriate share of
23    the common expenses, or if all of the common expenses or
24    all of the common elements in the condominium have not been
25    distributed in the declaration, so that the sum total of
26    the shares of common areas which have been distributed or

 

 

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1    the sum total of the shares of the common expenses fail to
2    equal 100%, or if it appears that more than 100% of the
3    common elements or common expenses have been distributed,
4    the error may be corrected by operation of law by filing an
5    amendment to the declaration, approved by vote of
6    two-thirds of the members of the board of directors or a
7    majority vote of the unit owners at a meeting called for
8    that purpose, which proportionately adjusts all percentage
9    interests so that the total is equal to 100%, unless the
10    declaration specifically provides for a different
11    procedure or different percentage vote by the owners of the
12    units and the owners of mortgages thereon affected by
13    modification being made in the undivided interest in the
14    common areas, the number of votes in the unit owners
15    association or the liability for common expenses
16    appertaining to the unit.
17        (3) If an omission or error or a scrivener's error in
18    the declaration or other instrument is corrected by vote of
19    two-thirds of the members of the board of directors
20    pursuant to the authority established in subdivisions
21    (h)(1) or (h)(2) of this Section, the board, upon written
22    petition by unit owners with 20% of the votes of the
23    association or resolutions adopted by the board of managers
24    or board of directors of the condominium and common
25    interest community associations which select 20% of the
26    members of the board of directors of the master

 

 

HB4560- 29 -LRB097 15076 AJO 60167 b

1    association, whichever is applicable, received within 30
2    days of the board action, shall call a meeting of the unit
3    owners or the boards of the condominium and common interest
4    community associations which select members of the board of
5    directors of the master association within 30 days of the
6    filing of the petition or receipt of the condominium and
7    common interest community association resolution to
8    consider the board action. Unless a majority of the votes
9    of the unit owners of the association are cast at the
10    meeting to reject the action, or board of managers or board
11    of directors of condominium and common interest community
12    associations which select over 50% of the members of the
13    board of the master association adopt resolutions prior to
14    the meeting rejecting the action of the board of directors
15    of the master association, it is ratified whether or not a
16    quorum is present.
17        (4) The procedures for amendments set forth in this
18    subsection (h) cannot be used if such an amendment would
19    materially or adversely affect property rights of the unit
20    owners unless the affected unit owners consent in writing.
21    This Section does not restrict the powers of the
22    association to otherwise amend the declaration, bylaws, or
23    other condominium instruments, but authorizes a simple
24    process of amendment requiring a lesser vote for the
25    purpose of correcting defects, errors, or omissions when
26    the property rights of the unit owners are not materially

 

 

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1    or adversely affected.
2        (5) If there is an omission or error in the declaration
3    or other instruments that may not be corrected by an
4    amendment procedure set forth in subdivision (h)(1) or
5    (h)(2) of this Section, then the circuit court in the
6    county in which the master association is located shall
7    have jurisdiction to hear a petition of one or more of the
8    unit owners thereon or of the association, to correct the
9    error or omission, and the action may be a class action.
10    The court may require that one or more methods of
11    correcting the error or omission be submitted to the unit
12    owners to determine the most acceptable correction. All
13    unit owners in the association must be joined as parties to
14    the action. Service of process on owners may be by
15    publication, but the plaintiff shall furnish all unit
16    owners not personally served with process with copies of
17    the petition and final judgment of the court by certified
18    mail, return receipt requested, at their last known
19    address.
20        (6) Nothing contained in this Section shall be
21    construed to invalidate any provision of a declaration
22    authorizing the developer to amend an instrument prior to
23    the latest date on which the initial membership meeting of
24    the unit owners must be held, whether or not it has
25    actually been held, to bring the instrument into compliance
26    with the legal requirements of the Federal National

 

 

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1    Mortgage Association, the Federal Home Loan Mortgage
2    Corporation, the Federal Housing Administration, the
3    United States Veterans Administration or their respective
4    successors and assigns.
5    (i) The provisions of subsections (c) through (h) are
6applicable to all declarations, other condominium instruments,
7and other duly recorded covenants establishing the powers and
8duties of the master association recorded under this Act. Any
9portion of a declaration, other condominium instrument, or
10other duly recorded covenant establishing the powers and duties
11of a master association which contains provisions contrary to
12the provisions of subsection (c) through (h) shall be void as
13against public policy and ineffective. Any declaration, other
14condominium instrument, or other duly recorded covenant
15establishing the powers and duties of the master association
16which fails to contain the provisions required by subsections
17(c) through (h) shall be deemed to incorporate such provisions
18by operation of law.
19    (j) (Blank).
20(Source: P.A. 96-1045, eff. 7-14-10; 97-535, eff. 1-1-12;
2197-605, eff. 8-26-11; revised 10-4-11.)
 
22    Section 99. Effective date. This Act takes effect July 1,
232012.