SB1651 EngrossedLRB097 08355 AJO 48482 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 Sections 1-5, 1-15, 1-20, 1-25, 1-30, 1-35,
61-40, 1-45, 1-55, 1-60, and 1-75 and by adding Section 1-80 as
7follows:
 
8    (765 ILCS 160/1-5)
9    Sec. 1-5. Definitions. As used in this Act, unless the
10context otherwise requires:
11    "Association" or "common interest community association"
12means the association of all the unit owners of a common
13interest community, acting pursuant to bylaws through its duly
14elected board of managers or board of directors.
15    "Board" means a common interest community association's
16board of managers or board of directors, whichever is
17applicable.
18    "Board member" or "member of the board" means a member of
19the board of managers or the board of directors, whichever is
20applicable.
21    "Board of directors" means, for a common interest community
22that has been incorporated as an Illinois not-for-profit
23corporation, the group of people elected by the unit owners of

 

 

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1a common interest community as the governing body to exercise
2for the unit owners of the common interest community
3association all powers, duties, and authority vested in the
4board of directors under this Act and the common interest
5community association's declaration and bylaws.
6    "Board of managers" means, for a common interest community
7that is an unincorporated association, the group of people
8elected by the unit owners of a common interest community as
9the governing body to exercise for the unit owners of the
10common interest community association all powers, duties, and
11authority vested in the board of managers under this Act and
12the common interest community association's declaration and
13bylaws.
14    "Building" means all structures, attached or unattached,
15containing one or more units.
16    "Common areas" means the portion of the property other than
17a unit.
18    "Common expenses" means the proposed or actual expenses
19affecting the property, including reserves, if any, lawfully
20assessed by the common interest community association.
21    "Common interest community" means real estate other than a
22condominium or cooperative with respect to which any person by
23virtue of his or her ownership of a partial interest or a unit
24therein is obligated to pay for the maintenance, improvement,
25insurance premiums or real estate taxes of common areas
26described in a declaration which is administered by an

 

 

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1association. "Common interest community" may include, but not
2be limited to, an attached or detached townhome, villa, or
3single-family home, or master association. A "common interest
4community" does not include a master association.
5    "Community instruments" means all documents and authorized
6amendments thereto recorded by a developer or common interest
7community association, including, but not limited to, the
8declaration, bylaws, plat of survey, and rules and regulations.
9    "Declaration" means any duly recorded instruments, however
10designated, that have created a common interest community and
11any duly recorded amendments to those instruments.
12    "Developer" means any person who submits property legally
13or equitably owned in fee simple by the person to the
14provisions of this Act, or any person who offers units legally
15or equitably owned in fee simple by the person for sale in the
16ordinary course of such person's business, including any
17successor to such person's entire interest in the property
18other than the purchaser of an individual unit.
19    "Developer control" means such control at a time prior to
20the election of the board of the common interest community
21association by a majority of the unit owners other than the
22developer.
23    "Majority" or "majority of the unit owners" means the
24owners of more than 50% in the aggregate in interest of the
25undivided ownership of the common elements. Any specified
26percentage of the unit owners means such percentage in the

 

 

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1aggregate in interest of such undivided ownership. "Majority"
2or "majority of the members of the board of the common interest
3community association" means more than 50% of the total number
4of persons constituting such board pursuant to the bylaws. Any
5specified percentage of the members of the common interest
6community association means that percentage of the total number
7of persons constituting such board pursuant to the bylaws.
8    "Management company" or "community association manager"
9means a person, partnership, corporation, or other legal entity
10entitled to transact business on behalf of others, acting on
11behalf of or as an agent for an association for the purpose of
12carrying out the duties, responsibilities, and other
13obligations necessary for the day to day operation and
14management of any property subject to this Act.
15    "Master association" means a common interest community
16association that exercises its powers on behalf of one or more
17condominium or other common interest community associations or
18for the benefit of unit owners in such associations.
19    "Meeting of the board" or "board meeting" means any
20gathering of a quorum of the members of the board of the common
21interest community association held for the purpose of
22conducting board business.
23    "Member" means the person or entity designated as an owner
24and entitled to one vote as defined by the community
25instruments.
26    "Membership" means the collective group of members

 

 

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1entitled to vote as defined by the community instruments.
2    "Parcel" means the lot or lots or tract or tracts of land
3described in the declaration as part of a common interest
4community.
5    "Person" means a natural individual, corporation,
6partnership, trustee, or other legal entity capable of holding
7title to real property.
8    "Plat" means a plat or plats of survey of the parcel and of
9all units in the common interest community, which may consist
10of a three-dimensional horizontal and vertical delineation of
11all such units, structures, easements, and common areas on the
12property.
13    "Prescribed delivery method" means mailing, delivering,
14posting in an association publication that is routinely mailed
15to all unit owners, or any other delivery method that is
16approved in writing by the unit owner and authorized by the
17community instruments.
18    "Property" means all the land, property, and space
19comprising the parcel, all improvements and structures
20erected, constructed or contained therein or thereon,
21including any building and all easements, rights, and
22appurtenances belonging thereto, and all fixtures and
23equipment intended for the mutual use, benefit, or enjoyment of
24the unit owners, under the authority or control of a common
25interest community association.
26    "Purchaser" means any person or persons, other than the

 

 

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1developer, who purchase a unit in a bona fide transaction for
2value.
3    "Record" means to record in the office of the recorder of
4the county wherein the property is located.
5    "Reserves" means those sums paid by unit owners which are
6separately maintained by the common interest community
7association for purposes specified by the declaration and
8bylaws of the common interest community association.
9    "Unit" means a part of the property designed and intended
10for any type of independent use.
11    "Unit owner" means the person or persons whose estates or
12interests, individually or collectively, aggregate fee simple
13absolute ownership of a unit.
14(Source: P.A. 96-1400, eff. 7-29-10.)
 
15    (765 ILCS 160/1-15)
16    Sec. 1-15. Construction, interpretation, and validity of
17community instruments.
18    (a) Except to the extent otherwise provided by the
19declaration or other community instruments, the terms defined
20in Section 1-5 of this Act shall be deemed to have the meaning
21specified therein unless the context otherwise requires.
22    (b) All provisions of the declaration, bylaws, and other
23community instruments are severable.
24    (c) A provision in the declaration limiting ownership,
25rental, or occupancy of a unit to a person 55 years of age or

 

 

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1older shall be valid and deemed not to be in violation of
2Article 3 of the Illinois Human Rights Act provided that the
3person or the immediate family of a person owning, renting, or
4lawfully occupying such unit prior to the recording of the
5initial declaration shall not be deemed to be in violation of
6such age restriction so long as they continue to own or reside
7in such unit.
8    (d) Every common interest community association shall
9define a member and its relationship to the units or unit
10owners in its community instruments.
11(Source: P.A. 96-1400, eff. 7-29-10.)
 
12    (765 ILCS 160/1-20)
13    Sec. 1-20. Amendments to the declaration or bylaws.
14    (a) The administration of every property shall be governed
15by the declaration and bylaws, which may either be embodied in
16the declaration or in a separate instrument, a true copy of
17which shall be appended to and recorded with the declaration.
18No modification or amendment of the declaration or bylaws shall
19be valid unless the same is set forth in an amendment thereof
20and such amendment is duly recorded. An amendment of the
21declaration or bylaws shall be deemed effective upon
22recordation, unless the amendment sets forth a different
23effective date.
24    (b) Unless otherwise provided by this Act, amendments to
25community instruments authorized to be recorded shall be

 

 

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1executed and recorded by the president of the board or such
2other officer authorized by the common interest community
3association or the community instruments declaration.
4    (c) If an association that currently permits leasing amends
5its declaration, bylaws, or rules and regulations to prohibit
6leasing, nothing in this Act or the declarations, bylaws, rules
7and regulations of an association shall prohibit a unit owner
8incorporated under 26 USC 501(c)(3) which is leasing a unit at
9the time of the prohibition from continuing to do so until such
10time that the unit owner voluntarily sells the unit; and no
11special fine, fee, dues, or penalty shall be assessed against
12the unit owner for leasing its unit.
13(Source: P.A. 96-1400, eff. 7-29-10.)
 
14    (765 ILCS 160/1-25)
15    Sec. 1-25. Board of managers, board of directors, duties,
16elections, and voting.
17    (a) There shall be an annual election of the board of
18managers or board of directors from among the membership unit
19owners of a common interest community association.
20    (b) (Blank). The terms of at least one-third of the members
21of the board shall expire annually and all members of the board
22shall be elected at large.
23    (c) The members of the board shall serve without
24compensation, unless the community instruments indicate
25otherwise.

 

 

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1    (d) No member of the board or officer shall be elected for
2a term of more than 3 years, but officers and board members may
3succeed themselves.
4    (e) If there is a vacancy on the board, the remaining
5members of the board may fill the vacancy by a two-thirds vote
6of the remaining board members until the next annual meeting of
7the membership unit owners or until members unit owners holding
820% of the votes of the association request a meeting of the
9members unit owners to fill the vacancy for the balance of the
10term. A meeting of the members unit owners shall be called for
11purposes of filling a vacancy on the board no later than 30
12days following the filing of a petition signed by membership
13unit owners holding 20% of the votes of the association
14requesting such a meeting.
15    (f) There shall be an election of a:
16        (1) president from among the members of the board, who
17    shall preside over the meetings of the board and of the
18    membership unit owners;
19        (2) secretary from among the members of the board, who
20    shall keep the minutes of all meetings of the board and of
21    the membership unit owners and who shall, in general,
22    perform all the duties incident to the office of secretary;
23    and
24        (3) treasurer from among the members of the board, who
25    shall keep the financial records and books of account.
26    (g) If no election is held to elect board members within

 

 

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1the time period specified in the bylaws, or within a reasonable
2amount of time thereafter not to exceed 90 days, then 20% of
3the members unit owners may bring an action to compel
4compliance with the election requirements specified in the
5bylaws. If the court finds that an election was not held to
6elect members of the board within the required period due to
7the bad faith acts or omissions of the board of managers or the
8board of directors, the unit owners shall be entitled to
9recover their reasonable attorney's fees and costs from the
10association. If the relevant notice requirements have been met
11and an election is not held solely due to a lack of a quorum,
12then this subsection (g) does not apply.
13    (h) Where there is more than one owner of a unit and there
14is only one member vote associated with that unit, if only one
15of the multiple owners is present at a meeting of the
16membership association, he or she is entitled to cast the
17member vote associated with that unit all the votes allocated
18to that unit.
19    (h-5) A member unit owner may vote:
20        (1) by proxy executed in writing by the member unit
21    owner or by his or her duly authorized attorney in fact,
22    provided, however, that the proxy bears the date of
23    execution. Unless the community instruments or the written
24    proxy itself provide otherwise, proxies will not be valid
25    for more than 11 months after the date of its execution; or
26        (2) by submitting an association-issued ballot in

 

 

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1    person at the election meeting; or
2        (3) by submitting an association-issued ballot to the
3    association or its designated agent by mail or other means
4    of delivery specified in the declaration or bylaws.
5    (i) The association may, upon adoption of the appropriate
6rules by the board, conduct elections by secret ballot,
7distributed by the association, whereby the voting ballot is
8marked only with the voting interest for the member unit and
9the vote itself, provided that the association shall further
10adopt rules to verify the status of the member unit owner
11issuing a proxy or casting a ballot. A candidate for election
12to the board or such candidate's representative shall have the
13right to be present at the counting of ballots at such
14election.
15    (j) Upon proof of purchase, the The purchaser of a unit
16from a seller other than the developer pursuant to an
17installment contract for purchase shall, during such times as
18he or she resides in the unit, be counted toward a quorum for
19purposes of election of members of the board at any meeting of
20the membership unit owners called for purposes of electing
21members of the board, shall have the right to vote for the
22election of members of the board of the common interest
23community association and to be elected to and serve on the
24board unless the seller expressly retains in writing any or all
25of such rights.
26(Source: P.A. 96-1400, eff. 7-29-10.)
 

 

 

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1    (765 ILCS 160/1-30)
2    Sec. 1-30. Board duties and obligations; records.
3    (a) The board shall meet at least 4 times annually.
4    (b) A member of the board of the common interest community
5association may not enter into a contract with a current board
6member, or with a corporation or partnership in which a board
7member or a member of his or her immediate family has 25% or
8more interest, unless notice of intent to enter into the
9contract is given to unit owners within 20 days after a
10decision is made to enter into the contract and the unit owners
11are afforded an opportunity by filing a petition, signed by 20%
12of the membership unit owners, for an election to approve or
13disapprove the contract; such petition shall be filed within 20
14days after such notice and such election shall be held within
1530 days after filing the petition. For purposes of this
16subsection, a board member's immediate family means the board
17member's spouse, parents, and children.
18    (c) The bylaws shall provide for the maintenance, repair,
19and replacement of the common areas and payments therefor,
20including the method of approving payment vouchers.
21    (d) (Blank).
22    (e) The association may engage the services of a manager or
23management company.
24    (f) The association shall have one class of membership
25unless the declaration or bylaws provide otherwise; however,

 

 

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1this subsection (f) shall not be construed to limit the
2operation of subsection (c) of Section 1-20 of this Act.
3    (g) The board shall have the power, after notice and an
4opportunity to be heard, to levy and collect reasonable fines
5from unit owners for violations of the declaration, bylaws, and
6rules and regulations of the common interest community
7association.
8    (h) Other than attorney's fees and court costs, no fees
9pertaining to the collection of a unit owner's financial
10obligation to the association, including fees charged by a
11manager or managing agent, shall be added to and deemed a part
12of a unit owner's respective share of the common expenses
13unless: (i) the managing agent fees relate to the costs to
14collect common expenses for the association; (ii) the fees are
15set forth in a contract between the managing agent and the
16association; and (iii) the authority to add the management fees
17to a unit owner's respective share of the common expenses is
18specifically stated in the declaration or bylaws of the
19association.
20    (i) Board records.
21        (1) The board shall maintain the following records of
22    the association and make them available for examination and
23    copying at convenient hours of weekdays by any unit owner
24    in a common interest community subject to the authority of
25    the board, their mortgagees, and their duly authorized
26    agents or attorneys:

 

 

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1            (i) Copies of the recorded declaration, other
2        community instruments, other duly recorded covenants
3        and bylaws and any amendments, articles of
4        incorporation, annual reports, and any rules and
5        regulations adopted by the board shall be available.
6        Prior to the organization of the board, the developer
7        shall maintain and make available the records set forth
8        in this paragraph (i) for examination and copying.
9            (ii) Detailed and accurate records in
10        chronological order of the receipts and expenditures
11        affecting the common areas, specifying and itemizing
12        the maintenance and repair expenses of the common areas
13        and any other expenses incurred, and copies of all
14        contracts, leases, or other agreements entered into by
15        the board shall be maintained.
16            (iii) The minutes of all meetings of the board
17        which shall be maintained for not less than 7 years.
18            (iv) With a written statement of a proper purpose,
19        ballots and proxies related thereto, if any, for any
20        election held for the board and for any other matters
21        voted on by the unit owners, which shall be maintained
22        for not less than one year.
23            (v) With a written statement of a proper purpose,
24        such other records of the board as are available for
25        inspection by members of a not-for-profit corporation
26        pursuant to Section 107.75 of the General Not For

 

 

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1        Profit Corporation Act of 1986 shall be maintained.
2            (vi) With respect to units owned by a land trust, a
3        living trust, or other legal entity, the trustee,
4        officer, or manager of the entity may designate, in
5        writing, a person to cast votes on behalf of the unit
6        owner and a designation shall remain in effect until a
7        subsequent document is filed with the association.
8        (2) Where a request for records under this subsection
9    is made in writing to the board or its agent, failure to
10    provide the requested record or to respond within 30 days
11    shall be deemed a denial by the board.
12        (3) A reasonable fee may be charged by the board for
13    the cost of retrieving and copying records properly
14    requested.
15        (4) If the board fails to provide records properly
16    requested under paragraph (1) of this subsection (i) within
17    the time period provided in that paragraph (1), the unit
18    owner may seek appropriate relief and shall be entitled to
19    an award of reasonable attorney's fees and costs if the
20    unit owner prevails and the court finds that such failure
21    is due to the acts or omissions of the board of managers or
22    the board of directors.
23    (j) The board shall have standing and capacity to act in a
24representative capacity in relation to matters involving the
25common areas or more than one unit, on behalf of the unit
26owners as their interests may appear.

 

 

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1(Source: P.A. 96-1400, eff. 7-29-10.)
 
2    (765 ILCS 160/1-35)
3    Sec. 1-35. Unit owner powers, duties, and obligations.
4    (a) The provisions of this Act, the declaration, bylaws,
5other community instruments, and rules and regulations that
6relate to the use of an individual unit or the common areas
7shall be applicable to any person leasing a unit and shall be
8deemed to be incorporated in any lease executed or renewed on
9or after the effective date of this Act. With regard to any
10lease entered into subsequent to the effective date of this
11Act, the unit owner leasing the unit shall deliver a copy of
12the signed lease to the association or if the lease is oral, a
13memorandum of the lease, not later than the date of occupancy
14or 10 days after the lease is signed, whichever occurs first.
15    (b) If there are multiple owners of a single unit, only one
16of the multiple owners shall be eligible to serve as a member
17of the board at any one time.
18    (c) Two-thirds of the membership unit owners may remove a
19board member as a director at a duly duty called special
20meeting of the unit owners.
21    (d) In the event of any resale of a unit in a common
22interest community association by a unit owner other than the
23developer, the board shall make available for inspection to the
24prospective purchaser, upon demand, the following:
25        (1) A copy of the declaration, other instruments, and

 

 

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

 

 

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1information.
2    A reasonable fee covering the direct out-of-pocket cost of
3copying and providing such information may be charged by the
4association or the board to the unit seller for providing the
5information.
6(Source: P.A. 96-1400, eff. 7-29-10.)
 
7    (765 ILCS 160/1-40)
8    Sec. 1-40. Meetings.
9    (a) Notice Written notice of any membership meeting shall
10be given detailing the time, place, and purpose of such meeting
11mailed or delivered giving members no less than 10 and no more
12than 30 days prior to the meeting through a prescribed delivery
13method notice of the time, place, and purpose of such meeting.
14    (b) Meetings.
15        (1) Twenty percent of the membership unit owners shall
16    constitute a quorum, unless the community instruments
17    indicate a lesser amount otherwise.
18        (2) The membership unit owners shall hold an annual
19    meeting, one of the purposes of which shall be to elect
20    members of the board of managers or board of directors of
21    the common interest community association. The board of
22    directors may be elected at the annual meeting.
23        (3) Special meetings of the board may be called by the
24    president, by or 25% of the members of the board, or by any
25    other method that is prescribed in the community

 

 

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1    instruments. Special meetings of the membership unit
2    owners may be called by the president, the board, or by 20%
3    of the membership, or any other method that is prescribed
4    in the community instruments unit owners.
5        (4) Except to the extent otherwise provided by this
6    Act, the board shall give the unit owners notice of all
7    board meetings at least 48 hours prior to the meeting by
8    sending notice by using a prescribed delivery method mail,
9    personal delivery, or by posting copies of notices of
10    meetings in entranceways, elevators, or other conspicuous
11    places in the common areas of the common interest community
12    at least 48 hours prior to the meeting except where there
13    is no common entranceway for 7 or more units, the board may
14    designate one or more locations in the proximity of these
15    units where the notices of meetings shall be posted. The
16    board shall give unit owners, by mail or personal delivery,
17    notice of any board meeting, through a prescribed delivery
18    method, concerning the adoption of (i) the proposed annual
19    budget, (ii) regular assessments, or (iii) a separate or
20    special assessment within 10 to 60 30 days prior to the
21    meeting, unless otherwise provided in Section 1-45 (a) or
22    any other provision of this Act.
23        (5) Meetings of the board shall be open to any unit
24    owner, except for the portion of any meeting held (i) to
25    discuss litigation when an action against or on behalf of
26    the particular association has been filed and is pending in

 

 

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1    a court or administrative tribunal, or when the common
2    interest community association finds that such an action is
3    probable or imminent, (ii) to consider third party
4    contracts or information regarding appointment,
5    employment, or dismissal of an employee, or (iii) to
6    discuss violations of rules and regulations of the
7    association or a unit owner's unpaid share of common
8    expenses. Any vote on these matters shall be taken at a
9    meeting or portion thereof open to any unit owner.
10        (6) The board must reserve a portion of the meeting of
11    the board for comments by unit owners; provided, however,
12    the duration and meeting order for the unit owner comment
13    period is within the sole discretion of the board.
14(Source: P.A. 96-1400, eff. 7-29-10.)
 
15    (765 ILCS 160/1-45)
16    Sec. 1-45. Finances.
17    (a) Each unit owner shall receive through a prescribed
18delivery method, at least 30 days but not more than 60 days
19prior to the adoption thereof by the board, a copy of the
20proposed annual budget together with an indication of which
21portions are intended for reserves, capital expenditures or
22repairs or payment of real estate taxes.
23    (b) The board shall provide all unit owners with a
24reasonably detailed summary of the receipts, common expenses,
25and reserves for the preceding budget year. The board shall (i)

 

 

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1make available for review annually supply to all unit owners an
2itemized accounting of the common expenses for the preceding
3year actually incurred or paid, together with an indication of
4which portions were for reserves, capital expenditures or
5repairs or payment of real estate taxes and with a tabulation
6of the amounts collected pursuant to the budget or assessment,
7and showing the net excess or deficit of income over
8expenditures plus reserves or (ii) provide a consolidated
9annual independent audit report of the financial status of all
10fund accounts within the association.
11    (c) If an adopted budget or any separate assessment adopted
12by the board would result in the sum of all regular and
13separate assessments payable in the current fiscal year
14exceeding 115% of the sum of all regular and separate
15assessments payable during the preceding fiscal year, the
16common interest community association, upon written petition
17by unit owners with 20% of the votes of the association
18delivered to the board within 14 days of the board action,
19shall call a meeting of the unit owners within 30 days of the
20date of delivery of the petition to consider the budget or
21separate assessment; unless a majority of the total votes of
22the unit owners are cast at the meeting to reject the budget or
23separate assessment, it shall be deemed ratified.
24    (d) Any common expense not set forth in the budget or any
25increase in assessments over the amount adopted in the budget
26shall be separately assessed against all unit owners.

 

 

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1    (e) Separate assessments for expenditures relating to
2emergencies or mandated by law may be adopted by the board
3without being subject to unit owner approval or the provisions
4of subsection (c) or (f) of this Section. As used herein,
5"emergency" means an immediate danger to the structural
6integrity of the common areas or to the life, health, safety,
7or property of the unit owners.
8    (f) Assessments for additions and alterations to the common
9areas or to association-owned property not included in the
10adopted annual budget, shall be separately assessed and are
11subject to approval of two-thirds of the total members at a
12meeting called for that purpose votes of all unit owners.
13    (g) The board may adopt separate assessments payable over
14more than one fiscal year. With respect to multi-year
15assessments not governed by subsections (e) and (f) of this
16Section, the entire amount of the multi-year assessment shall
17be deemed considered and authorized in the first fiscal year in
18which the assessment is approved.
19    (h) The board of a common interest community association
20shall have the authority to establish and maintain a system of
21master metering of public utility services to collect payments
22in conjunction therewith, subject to the requirements of the
23Tenant Utility Payment Disclosure Act.
24(Source: P.A. 96-1400, eff. 7-29-10.)
 
25    (765 ILCS 160/1-55)

 

 

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1    Sec. 1-55. Fidelity insurance. An association with 30 or
2more units shall obtain and maintain fidelity insurance
3covering persons who control or disburse funds of the
4association for the maximum amount of coverage that is
5commercially available or reasonably required available to
6protect funds in the custody or control of the association plus
7the association reserve fund. All management companies which
8are responsible for the funds held or administered by the
9association shall maintain and furnish to the association a
10fidelity bond for the maximum amount of coverage that is
11commercially available or reasonably required available to
12protect funds in the custody of the management company at any
13time. The association shall bear the cost of the fidelity
14insurance and fidelity bond, unless otherwise provided by
15contract between the association and a management company.
16(Source: P.A. 96-1400, eff. 7-29-10.)
 
17    (765 ILCS 160/1-60)
18    Sec. 1-60. Errors and omissions.
19    (a) If there is an omission or error in the declaration or
20other instrument of the association, the association may
21correct the error or omission by an amendment to the
22declaration or other instrument, as may be required to conform
23it to this Act, to any other applicable statute, or to the
24declaration. The amendment shall be adopted by vote of
25two-thirds of the members of the board of directors or by a

 

 

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1majority vote of the members unit owners at a meeting called
2for that purpose, unless the Act or the declaration of the
3association specifically provides for greater percentages or
4different procedures.
5    (b) If, through a scrivener's error, a unit has not been
6designated as owning an appropriate undivided share of the
7common areas or does not bear an appropriate share of the
8common expenses, or if all of the common expenses or all of the
9common elements have not been distributed in the declaration,
10so that the sum total of the shares of common areas which have
11been distributed or the sum total of the shares of the common
12expenses fail to equal 100%, or if it appears that more than
13100% of the common elements or common expenses have been
14distributed, the error may be corrected by operation of law by
15filing an amendment to the declaration, approved by vote of
16two-thirds of the members of the board or a majority vote of
17the members unit owners at a meeting called for that purpose,
18which proportionately adjusts all percentage interests so that
19the total is equal to 100%, unless the declaration specifically
20provides for a different procedure or different percentage vote
21by the owners of the units and the owners of mortgages thereon
22affected by modification being made in the undivided interest
23in the common areas, the number of votes in the association or
24the liability for common expenses appertaining to the unit.
25    (c) If a scrivener's error in the declaration or other
26instrument is corrected by vote of two-thirds of the members of

 

 

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1the board pursuant to the authority established in subsection
2(a) or subsection (b), the board, upon written petition by
3members unit owners with 20% of the votes of the association
4received within 30 days of the board action, shall call a
5meeting of the members unit owners within 30 days of the filing
6of the petition to consider the board action. Unless a majority
7of the votes of the members unit owners of the association are
8cast at the meeting to reject the action, it is ratified
9whether or not a quorum is present.
10    (d) Nothing contained in this Section shall be construed to
11invalidate any provision of a declaration authorizing the
12developer to amend an instrument prior to the latest date on
13which the initial membership meeting of the unit owners must be
14held, whether or not it has actually been held, to bring the
15instrument into compliance with the legal requirements of the
16Federal National Mortgage Association, the Federal Home Loan
17Mortgage Corporation, the Federal Housing Administration, the
18United States Department of Veterans Affairs, or their
19respective successors and assigns.
20(Source: P.A. 96-1400, eff. 7-29-10.)
 
21    (765 ILCS 160/1-75)
22    Sec. 1-75. Exemptions for small community interest
23communities.
24    (a) A common interest community association organized
25under the General Not for Profit Corporation Act of 1986 and

 

 

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1having either (i) 10 units or less or (ii) annual budgeted
2assessments of $100,000 or less shall be exempt from this Act
3unless the association affirmatively elects to be covered by
4this Act by a majority of its directors or members and unit
5owners.
6    (b) Common interest community associations which in their
7declaration, bylaws, or other governing documents provide that
8the association may not use the courts or an arbitration
9process to collect or enforce assessments, fines, or similar
10levies and common interest community associations (i) of 10
11units or less or (ii) having annual budgeted assessments of
12$50,000 or less shall be exempt from subsection (a) of Section
131-30, subsections (a) and (b) of Section 1-40, and Section 1-55
14but shall be required to provide notice of meetings to unit
15owners in a manner and at a time that will allow unit owners to
16participate in those meetings.
17(Source: P.A. 96-1400, eff. 7-29-10.)
 
18    (765 ILCS 160/1-80 new)
19    Sec. 1-80. Compliance. A common interest community
20association shall be in full compliance with the provisions of
21this Act no later than January 1, 2012.
 
22    Section 10. The Condominium Property Act is amended by
23changing Section 18.5 as follows:
 

 

 

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1    (765 ILCS 605/18.5)  (from Ch. 30, par. 318.5)
2    Sec. 18.5. Master Associations.
3    (a) If the declaration, other condominium instrument, or
4other duly recorded covenants provide that any of the powers of
5the unit owners associations are to be exercised by or may be
6delegated to a nonprofit corporation or unincorporated
7association that exercises those or other powers on behalf of
8one or more condominiums, or for the benefit of the unit owners
9of one or more condominiums, such corporation or association
10shall be a master association.
11    (b) There shall be included in the declaration, other
12condominium instruments, or other duly recorded covenants
13establishing the powers and duties of the master association
14the provisions set forth in subsections (c) through (h).
15    In interpreting subsections (c) through (h), the courts
16should interpret these provisions so that they are interpreted
17consistently with the similar parallel provisions found in
18other parts of this Act.
19    (c) Meetings and finances.
20        (1) Each unit owner of a condominium subject to the
21    authority of the board of the master association shall
22    receive, at least 30 days prior to the adoption thereof by
23    the board of the master association, a copy of the proposed
24    annual budget.
25        (2) The board of the master association shall annually
26    supply to all unit owners of condominiums subject to the

 

 

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

 

 

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1        owed to the master association.
2    Any vote on these matters shall be taken at a meeting or
3    portion thereof open to any unit owner of a condominium
4    subject to the authority of the master association.
5        Any unit owner may record the proceedings at meetings
6    required to be open by this Act by tape, film or other
7    means; the board may prescribe reasonable rules and
8    regulations to govern the right to make such recordings.
9    Notice of meetings shall be mailed or delivered at least 48
10    hours prior thereto, unless a written waiver of such notice
11    is signed by the persons entitled to notice before the
12    meeting is convened. Copies of notices of meetings of the
13    board of the master association shall be posted in
14    entranceways, elevators, or other conspicuous places in
15    the condominium at least 48 hours prior to the meeting of
16    the board of the master association. Where there is no
17    common entranceway for 7 or more units, the board of the
18    master association may designate one or more locations in
19    the proximity of these units where the notices of meetings
20    shall be posted.
21        (5) If the declaration provides for election by unit
22    owners of members of the board of directors in the event of
23    a resale of a unit in the master association, the purchaser
24    of a unit from a seller other than the developer pursuant
25    to an installment contract for purchase shall, during such
26    times as he or she resides in the unit, be counted toward a

 

 

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

 

 

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

 

 

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1        master association or its board shall be available.
2        Prior to the organization of the master association,
3        the developer shall maintain and make available the
4        records set forth in this subdivision (d)(1) for
5        examination and copying.
6            (ii) Detailed and accurate records in
7        chronological order of the receipts and expenditures
8        affecting the common areas, specifying and itemizing
9        the maintenance and repair expenses of the common areas
10        and any other expenses incurred, and copies of all
11        contracts, leases, or other agreements entered into by
12        the master association, shall be maintained.
13            (iii) The minutes of all meetings of the master
14        association and the board of the master association
15        shall be maintained for not less than 7 years.
16            (iv) Ballots and proxies related thereto, if any,
17        for any election held for the board of the master
18        association and for any other matters voted on by the
19        unit owners shall be maintained for not less than one
20        year.
21            (v) Such other records of the master association as
22        are available for inspection by members of a
23        not-for-profit corporation pursuant to Section 107.75
24        of the General Not For Profit Corporation Act of 1986
25        shall be maintained.
26            (vi) With respect to units owned by a land trust,

 

 

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1        if a trustee designates in writing a person to cast
2        votes on behalf of the unit owner, the designation
3        shall remain in effect until a subsequent document is
4        filed with the association.
5        (2) Where a request for records under this subsection
6    is made in writing to the board of managers or its agent,
7    failure to provide the requested record or to respond
8    within 30 days shall be deemed a denial by the board of
9    directors.
10        (3) A reasonable fee may be charged by the master
11    association or its board for the cost of copying.
12        (4) If the board of directors fails to provide records
13    properly requested under subdivision (d)(1) within the
14    time period provided in subdivision (d)(2), the unit owner
15    may seek appropriate relief, including an award of
16    attorney's fees and costs.
17    (e) The board of directors shall have standing and capacity
18to act in a representative capacity in relation to matters
19involving the common areas of the master association or more
20than one unit, on behalf of the unit owners as their interests
21may appear.
22    (f) Administration of property prior to election of the
23initial board of directors.
24        (1) Until the election, by the unit owners or the
25    boards of managers of the underlying condominium
26    associations, of 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, the same rights, titles, powers,
3    privileges, trusts, duties and obligations that are vested
4    in or imposed upon the board of directors by this Act or in
5    the declaration or other duly recorded covenant shall be
6    held and performed by the developer.
7        (2) The election of the initial board of directors of a
8    master association whose declaration is recorded on or
9    after August 10, 1990, by the unit owners or the boards of
10    managers of the underlying condominium associations, shall
11    be held not later than 60 days after the conveyance by the
12    developer of 75% of the units, or 3 years after the
13    recording of the declaration, whichever is earlier. The
14    developer shall give at least 21 days notice of the meeting
15    to elect the initial board of directors and shall upon
16    request provide to any unit owner, within 3 working days of
17    the request, the names, addresses, and weighted vote of
18    each unit owner entitled to vote at the meeting. Any unit
19    owner shall upon receipt of the request be provided with
20    the same information, within 10 days of the request, with
21    respect to each subsequent meeting to elect members of the
22    board of directors.
23        (3) If the initial board of directors of a master
24    association whose declaration is recorded on or after
25    August 10, 1990 is not elected by the unit owners or the
26    members of the underlying condominium association board of

 

 

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1    managers at the time established in subdivision (f)(2), the
2    developer shall continue in office for a period of 30 days,
3    whereupon written notice of his resignation shall be sent
4    to all of the unit owners or members of the underlying
5    condominium board of managers entitled to vote at an
6    election for members of the board of directors.
7        (4) Within 60 days following the election of a majority
8    of the board of directors, other than the developer, by
9    unit owners, the developer shall deliver to the board of
10    directors:
11            (i) All original documents as recorded or filed
12        pertaining to the property, its administration, and
13        the association, such as the declaration, articles of
14        incorporation, other instruments, annual reports,
15        minutes, rules and regulations, and contracts, leases,
16        or other agreements entered into by the association. If
17        any original documents are unavailable, a copy may be
18        provided if certified by affidavit of the developer, or
19        an officer or agent of the developer, as being a
20        complete copy of the actual document recorded or filed.
21            (ii) A detailed accounting by the developer,
22        setting forth the source and nature of receipts and
23        expenditures in connection with the management,
24        maintenance and operation of the property, copies of
25        all insurance policies, and a list of any loans or
26        advances to the association which are outstanding.

 

 

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1            (iii) Association funds, which shall have been at
2        all times segregated from any other moneys of the
3        developer.
4            (iv) A schedule of all real or personal property,
5        equipment and fixtures belonging to the association,
6        including documents transferring the property,
7        warranties, if any, for all real and personal property
8        and equipment, deeds, title insurance policies, and
9        all tax bills.
10            (v) A list of all litigation, administrative
11        action and arbitrations involving the association, any
12        notices of governmental bodies involving actions taken
13        or which may be taken concerning the association,
14        engineering and architectural drawings and
15        specifications as approved by any governmental
16        authority, all other documents filed with any other
17        governmental authority, all governmental certificates,
18        correspondence involving enforcement of any
19        association requirements, copies of any documents
20        relating to disputes involving unit owners, and
21        originals of all documents relating to everything
22        listed in this subparagraph.
23            (vi) If the developer fails to fully comply with
24        this paragraph (4) within the 60 days provided and
25        fails to fully comply within 10 days of written demand
26        mailed by registered or certified mail to his or her

 

 

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

 

 

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1    of this provision, of what contracts, leases and other
2    agreements are affected, and of the procedure for calling a
3    meeting of the unit owners or for action by the underlying
4    condominium board of managers for the purpose of acting to
5    terminate such contracts, leases or other agreements.
6    During the 90 day period the other party to the contract,
7    lease, or other agreement shall also have the right of
8    cancellation.
9        (6) The statute of limitations for any actions in law
10    or equity which the master association may bring shall not
11    begin to run until the unit owners or underlying
12    condominium board of managers have elected a majority of
13    the members of the board of directors.
14    (g) In the event of any resale of a unit in a master
15association by a unit owner other than the developer, the owner
16shall obtain from the board of directors and shall make
17available for inspection to the prospective purchaser, upon
18demand, the following:
19        (1) A copy of the declaration, other instruments and
20    any rules and regulations.
21        (2) A statement of any liens, including a statement of
22    the account of the unit setting forth the amounts of unpaid
23    assessments and other charges due and owing.
24        (3) A statement of any capital expenditures
25    anticipated by the association within the current or
26    succeeding 2 fiscal years.

 

 

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

 

 

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1community pursuant to a court order or a purchaser who acquires
2title from a mortgagee shall have the duty to pay the
3proportionate share, if any, of the common expenses for the
4unit that would have become due in the absence of any
5assessment acceleration during the 6 months immediately
6preceding institution of an action to enforce the collection of
7assessments, and that remain unpaid by the owner during whose
8possession the assessments accrued. If the outstanding
9assessments are paid at any time during any action to enforce
10the collection of assessments, the purchaser shall have no
11obligation to pay any assessments that accrued before he or she
12acquired title. The notice of sale of a unit of a common
13interest community under subsection (c) of Section 15-1507 of
14the Code of Civil Procedure shall state that the purchaser of
15the unit other than a mortgagee shall pay the assessments
16required by this subsection (g-1).
17    (h) Errors and omissions.
18        (1) If there is an omission or error in the declaration
19    or other instrument of the master association, the master
20    association may correct the error or omission by an
21    amendment to the declaration or other instrument, as may be
22    required to conform it to this Act, to any other applicable
23    statute, or to the declaration. The amendment shall be
24    adopted by vote of two-thirds of the members of the board
25    of directors or by a majority vote of the unit owners at a
26    meeting called for that purpose, unless the Act or the

 

 

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1    declaration of the master association specifically
2    provides for greater percentages or different procedures.
3        (2) If, through a scrivener's error, a unit has not
4    been designated as owning an appropriate undivided share of
5    the common areas or does not bear an appropriate share of
6    the common expenses, or if all of the common expenses or
7    all of the common elements in the condominium have not been
8    distributed in the declaration, so that the sum total of
9    the shares of common areas which have been distributed or
10    the sum total of the shares of the common expenses fail to
11    equal 100%, or if it appears that more than 100% of the
12    common elements or common expenses have been distributed,
13    the error may be corrected by operation of law by filing an
14    amendment to the declaration, approved by vote of
15    two-thirds of the members of the board of directors or a
16    majority vote of the unit owners at a meeting called for
17    that purpose, which proportionately adjusts all percentage
18    interests so that the total is equal to 100%, unless the
19    declaration specifically provides for a different
20    procedure or different percentage vote by the owners of the
21    units and the owners of mortgages thereon affected by
22    modification being made in the undivided interest in the
23    common areas, the number of votes in the unit owners
24    association or the liability for common expenses
25    appertaining to the unit.
26        (3) If an omission or error or a scrivener's error in

 

 

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1    the declaration or other instrument is corrected by vote of
2    two-thirds of the members of the board of directors
3    pursuant to the authority established in subdivisions
4    (h)(1) or (h)(2) of this Section, the board, upon written
5    petition by unit owners with 20% of the votes of the
6    association or resolutions adopted by the board of managers
7    or board of directors of the condominium and common
8    interest community associations which select 20% of the
9    members of the board of directors of the master
10    association, whichever is applicable, received within 30
11    days of the board action, shall call a meeting of the unit
12    owners or the boards of the condominium and common interest
13    community associations which select members of the board of
14    directors of the master association within 30 days of the
15    filing of the petition or receipt of the condominium and
16    common interest community association resolution to
17    consider the board action. Unless a majority of the votes
18    of the unit owners of the association are cast at the
19    meeting to reject the action, or board of managers or board
20    of directors of condominium and common interest community
21    associations which select over 50% of the members of the
22    board of the master association adopt resolutions prior to
23    the meeting rejecting the action of the board of directors
24    of the master association, it is ratified whether or not a
25    quorum is present.
26        (4) The procedures for amendments set forth in this

 

 

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1    subsection (h) cannot be used if such an amendment would
2    materially or adversely affect property rights of the unit
3    owners unless the affected unit owners consent in writing.
4    This Section does not restrict the powers of the
5    association to otherwise amend the declaration, bylaws, or
6    other condominium instruments, but authorizes a simple
7    process of amendment requiring a lesser vote for the
8    purpose of correcting defects, errors, or omissions when
9    the property rights of the unit owners are not materially
10    or adversely affected.
11        (5) If there is an omission or error in the declaration
12    or other instruments that may not be corrected by an
13    amendment procedure set forth in subdivision (h)(1) or
14    (h)(2) of this Section, then the circuit court in the
15    county in which the master association is located shall
16    have jurisdiction to hear a petition of one or more of the
17    unit owners thereon or of the association, to correct the
18    error or omission, and the action may be a class action.
19    The court may require that one or more methods of
20    correcting the error or omission be submitted to the unit
21    owners to determine the most acceptable correction. All
22    unit owners in the association must be joined as parties to
23    the action. Service of process on owners may be by
24    publication, but the plaintiff shall furnish all unit
25    owners not personally served with process with copies of
26    the petition and final judgment of the court by certified

 

 

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1    mail, return receipt requested, at their last known
2    address.
3        (6) Nothing contained in this Section shall be
4    construed to invalidate any provision of a declaration
5    authorizing the developer to amend an instrument prior to
6    the latest date on which the initial membership meeting of
7    the unit owners must be held, whether or not it has
8    actually been held, to bring the instrument into compliance
9    with the legal requirements of the Federal National
10    Mortgage Association, the Federal Home Loan Mortgage
11    Corporation, the Federal Housing Administration, the
12    United States Veterans Administration or their respective
13    successors and assigns.
14    (i) The provisions of subsections (c) through (h) are
15applicable to all declarations, other condominium instruments,
16and other duly recorded covenants establishing the powers and
17duties of the master association recorded under this Act. Any
18portion of a declaration, other condominium instrument, or
19other duly recorded covenant establishing the powers and duties
20of a master association which contains provisions contrary to
21the provisions of subsection (c) through (h) shall be void as
22against public policy and ineffective. Any declaration, other
23condominium instrument, or other duly recorded covenant
24establishing the powers and duties of the master association
25which fails to contain the provisions required by subsections
26(c) through (h) shall be deemed to incorporate such provisions

 

 

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1by operation of law.
2    (j) (Blank). The provisions of subsections (c) through (h)
3are applicable to all common interest community associations
4and their unit owners for common interest community
5associations which are subject to the provisions of Section
69-102(a)(8) of the Code of Civil Procedure. For purposes of
7this subsection, the terms "common interest community" and
8"unit owners" shall have the same meaning as set forth in
9Section 9-102(c) of the Code of Civil Procedure.
10(Source: P.A. 96-1045, eff. 7-14-10.)
 
11    Section 999. Effective date. This Act takes effect upon
12becoming law.