Sen. A. J. Wilhelmi

Filed: 4/7/2011

 

 


 

 


 
09700SB1651sam001LRB097 08355 AJO 54040 a

1
AMENDMENT TO SENATE BILL 1651

2    AMENDMENT NO. ______. Amend Senate Bill 1651 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Common Interest Community Association Act
5is amended by changing Sections 1-5, 1-15, 1-20, 1-25, 1-30,
61-35, 1-40, 1-45, 1-55, 1-60, and 1-75 and by adding Section
71-80 as follows:
 
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

 

 

09700SB1651sam001- 2 -LRB097 08355 AJO 54040 a

1applicable.
2    "Board member" or "member of the board" means a member of
3the board of managers or the board of directors, whichever is
4applicable.
5    "Board of directors" means, for a common interest community
6that has been incorporated as an Illinois not-for-profit
7corporation, the group of people elected by the unit owners of
8a common interest community as the governing body to exercise
9for the unit owners of the common interest community
10association all powers, duties, and authority vested in the
11board of directors under this Act and the common interest
12community association's declaration and bylaws.
13    "Board of managers" means, for a common interest community
14that is an unincorporated association, the group of people
15elected by the unit owners of a common interest community as
16the governing body to exercise for the unit owners of the
17common interest community association all powers, duties, and
18authority vested in the board of managers under this Act and
19the common interest community association's declaration and
20bylaws.
21    "Building" means all structures, attached or unattached,
22containing one or more units.
23    "Common areas" means the portion of the property other than
24a unit.
25    "Common expenses" means the proposed or actual expenses
26affecting the property, including reserves, if any, lawfully

 

 

09700SB1651sam001- 3 -LRB097 08355 AJO 54040 a

1assessed by the common interest community association.
2    "Common interest community" means real estate other than a
3condominium or cooperative with respect to which any person by
4virtue of his or her ownership of a partial interest or a unit
5therein is obligated to pay for the maintenance, improvement,
6insurance premiums or real estate taxes of common areas
7described in a declaration which is administered by an
8association. "Common interest community" may include, but not
9be limited to, an attached or detached townhome, villa, or
10single-family home, or master association. A "common interest
11community" does not include a master association.
12    "Community instruments" means all documents and authorized
13amendments thereto recorded by a developer or common interest
14community association, including, but not limited to, the
15declaration, bylaws, plat of survey, and rules and regulations.
16    "Declaration" means any duly recorded instruments, however
17designated, that have created a common interest community and
18any duly recorded amendments to those instruments.
19    "Developer" means any person who submits property legally
20or equitably owned in fee simple by the person to the
21provisions of this Act, or any person who offers units legally
22or equitably owned in fee simple by the person for sale in the
23ordinary course of such person's business, including any
24successor to such person's entire interest in the property
25other than the purchaser of an individual unit.
26    "Developer control" means such control at a time prior to

 

 

09700SB1651sam001- 4 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 5 -LRB097 08355 AJO 54040 a

1    "Meeting of the board" or "board meeting" means any
2gathering of a quorum of the members of the board of the common
3interest community association held for the purpose of
4conducting board business.
5    "Member" means the person or entity entitled to one vote as
6defined by the community instruments.
7    "Membership" means the collective group of members
8entitled to vote as defined by the community instruments.
9    "Parcel" means the lot or lots or tract or tracts of land
10described in the declaration as part of a common interest
11community.
12    "Person" means a natural individual, corporation,
13partnership, trustee, or other legal entity capable of holding
14title to real property.
15    "Plat" means a plat or plats of survey of the parcel and of
16all units in the common interest community, which may consist
17of a three-dimensional horizontal and vertical delineation of
18all such units, structures, easements, and common areas on the
19property.
20    "Prescribed delivery method" means mailing, delivering,
21posting in an association publication that is routinely mailed
22to all unit owners, or any other delivery method that is
23approved in writing by the unit owner.
24    "Property" means all the land, property, and space
25comprising the parcel, all improvements and structures
26erected, constructed or contained therein or thereon,

 

 

09700SB1651sam001- 6 -LRB097 08355 AJO 54040 a

1including any building and all easements, rights, and
2appurtenances belonging thereto, and all fixtures and
3equipment intended for the mutual use, benefit, or enjoyment of
4the unit owners, under the authority or control of a common
5interest community association.
6    "Purchaser" means any person or persons, other than the
7developer, who purchase a unit in a bona fide transaction for
8value.
9    "Record" means to record in the office of the recorder of
10the county wherein the property is located.
11    "Reserves" means those sums paid by unit owners which are
12separately maintained by the common interest community
13association for purposes specified by the declaration and
14bylaws of the common interest community association.
15    "Unit" means a part of the property designed and intended
16for any type of independent use.
17    "Unit owner" means the person or persons whose estates or
18interests, individually or collectively, aggregate fee simple
19absolute ownership of a unit.
20(Source: P.A. 96-1400, eff. 7-29-10.)
 
21    (765 ILCS 160/1-15)
22    Sec. 1-15. Construction, interpretation, and validity of
23community instruments.
24    (a) Except to the extent otherwise provided by the
25declaration or other community instruments, the terms defined

 

 

09700SB1651sam001- 7 -LRB097 08355 AJO 54040 a

1in Section 1-5 of this Act shall be deemed to have the meaning
2specified therein unless the context otherwise requires.
3    (b) All provisions of the declaration, bylaws, and other
4community instruments are severable.
5    (c) A provision in the declaration limiting ownership,
6rental, or occupancy of a unit to a person 55 years of age or
7older shall be valid and deemed not to be in violation of
8Article 3 of the Illinois Human Rights Act provided that the
9person or the immediate family of a person owning, renting, or
10lawfully occupying such unit prior to the recording of the
11initial declaration shall not be deemed to be in violation of
12such age restriction so long as they continue to own or reside
13in such unit.
14    (d) Every common interest community association shall
15define a member and its relationship to the units or unit
16owners in its community instruments.
17(Source: P.A. 96-1400, eff. 7-29-10.)
 
18    (765 ILCS 160/1-20)
19    Sec. 1-20. Amendments to the declaration or bylaws.
20    (a) The administration of every property shall be governed
21by the declaration and bylaws, which may either be embodied in
22the declaration or in a separate instrument, a true copy of
23which shall be appended to and recorded with the declaration.
24No modification or amendment of the declaration or bylaws shall
25be valid unless the same is set forth in an amendment thereof

 

 

09700SB1651sam001- 8 -LRB097 08355 AJO 54040 a

1and such amendment is duly recorded. An amendment of the
2declaration or bylaws shall be deemed effective upon
3recordation, unless the amendment sets forth a different
4effective date.
5    (b) Unless otherwise provided by this Act, amendments to
6community instruments authorized to be recorded shall be
7executed and recorded by the president of the board or such
8other officer authorized by the common interest community
9association or the community instruments declaration.
10    (c) If an association that currently permits leasing amends
11its declaration, bylaws, or rules and regulations to prohibit
12leasing, nothing in this Act or the declarations, bylaws, rules
13and regulations of an association shall prohibit a unit owner
14incorporated under 26 USC 501(c)(3) which is leasing a unit at
15the time of the prohibition from continuing to do so until such
16time that the unit owner voluntarily sells the unit; and no
17special fine, fee, dues, or penalty shall be assessed against
18the unit owner for leasing its unit.
19(Source: P.A. 96-1400, eff. 7-29-10.)
 
20    (765 ILCS 160/1-25)
21    Sec. 1-25. Board of managers, board of directors, duties,
22elections, and voting.
23    (a) There shall be an annual election of the board of
24managers or board of directors from among the membership unit
25owners of a common interest community association.

 

 

09700SB1651sam001- 9 -LRB097 08355 AJO 54040 a

1    (b) (Blank). The terms of at least one-third of the members
2of the board shall expire annually and all members of the board
3shall be elected at large.
4    (c) The members of the board shall serve without
5compensation, unless the community instruments indicate
6otherwise.
7    (d) No member of the board or officer shall be elected for
8a term of more than 3 years, but officers and board members may
9succeed themselves.
10    (e) If there is a vacancy on the board, the remaining
11members of the board may fill the vacancy by a two-thirds vote
12of the remaining board members until the next annual meeting of
13the membership unit owners or until members unit owners holding
1420% of the votes of the association request a meeting of the
15members unit owners to fill the vacancy for the balance of the
16term. A meeting of the members unit owners shall be called for
17purposes of filling a vacancy on the board no later than 30
18days following the filing of a petition signed by membership
19unit owners holding 20% of the votes of the association
20requesting such a meeting.
21    (f) There shall be an election of a:
22        (1) president from among the members of the board, who
23    shall preside over the meetings of the board and of the
24    membership unit owners;
25        (2) secretary from among the members of the board, who
26    shall keep the minutes of all meetings of the board and of

 

 

09700SB1651sam001- 10 -LRB097 08355 AJO 54040 a

1    the membership unit owners and who shall, in general,
2    perform all the duties incident to the office of secretary;
3    and
4        (3) treasurer from among the members of the board, who
5    shall keep the financial records and books of account.
6    (g) If no election is held to elect board members within
7the time period specified in the bylaws, or within a reasonable
8amount of time thereafter not to exceed 90 days, then 20% of
9the members unit owners may bring an action to compel
10compliance with the election requirements specified in the
11bylaws. If the court finds that an election was not held to
12elect members of the board within the required period due to
13the bad faith acts or omissions of the board of managers or the
14board of directors, the unit owners shall be entitled to
15recover their reasonable attorney's fees and costs from the
16association. If the relevant notice requirements have been met
17and an election is not held solely due to a lack of a quorum,
18then this subsection (g) does not apply.
19    (h) Where there is more than one owner of a unit and there
20is only one member vote associated with that unit, if only one
21of the multiple owners is present at a meeting of the
22membership association, he or she is entitled to cast the
23member vote associated with that unit all the votes allocated
24to that unit.
25    (h-5) A member unit owner may vote:
26        (1) by proxy executed in writing by the member unit

 

 

09700SB1651sam001- 11 -LRB097 08355 AJO 54040 a

1    owner or by his or her duly authorized attorney in fact,
2    provided, however, that the proxy bears the date of
3    execution. Unless the community instruments or the written
4    proxy itself provide otherwise, proxies will not be valid
5    for more than 11 months after the date of its execution; or
6        (2) by submitting an association-issued ballot in
7    person at the election meeting; or
8        (3) by submitting an association-issued ballot to the
9    association or its designated agent by mail or other means
10    of delivery specified in the declaration or bylaws.
11    (i) The association may, upon adoption of the appropriate
12rules by the board, conduct elections by secret ballot,
13distributed by the association, whereby the voting ballot is
14marked only with the voting interest for the member unit and
15the vote itself, provided that the association shall further
16adopt rules to verify the status of the member unit owner
17issuing a proxy or casting a ballot. A candidate for election
18to the board or such candidate's representative shall have the
19right to be present at the counting of ballots at such
20election.
21    (j) Upon proof of purchase, the The purchaser of a unit
22from a seller other than the developer pursuant to an
23installment contract for purchase shall, during such times as
24he or she resides in the unit, be counted toward a quorum for
25purposes of election of members of the board at any meeting of
26the membership unit owners called for purposes of electing

 

 

09700SB1651sam001- 12 -LRB097 08355 AJO 54040 a

1members of the board, shall have the right to vote for the
2election of members of the board of the common interest
3community association and to be elected to and serve on the
4board unless the seller expressly retains in writing any or all
5of such rights.
6(Source: P.A. 96-1400, eff. 7-29-10.)
 
7    (765 ILCS 160/1-30)
8    Sec. 1-30. Board duties and obligations; records.
9    (a) The board shall meet at least 4 times annually.
10    (b) A member of the board of the common interest community
11association may not enter into a contract with a current board
12member, or with a corporation or partnership in which a board
13member or a member of his or her immediate family has 25% or
14more interest, unless notice of intent to enter into the
15contract is given to unit owners within 20 days after a
16decision is made to enter into the contract and the unit owners
17are afforded an opportunity by filing a petition, signed by 20%
18of the membership unit owners, for an election to approve or
19disapprove the contract; such petition shall be filed within 20
20days after such notice and such election shall be held within
2130 days after filing the petition. For purposes of this
22subsection, a board member's immediate family means the board
23member's spouse, parents, and children.
24    (c) The bylaws shall provide for the maintenance, repair,
25and replacement of the common areas and payments therefor,

 

 

09700SB1651sam001- 13 -LRB097 08355 AJO 54040 a

1including the method of approving payment vouchers.
2    (d) (Blank).
3    (e) The association may engage the services of a manager or
4management company.
5    (f) The association shall have one class of membership
6unless the declaration or bylaws provide otherwise; however,
7this subsection (f) shall not be construed to limit the
8operation of subsection (c) of Section 1-20 of this Act.
9    (g) The board shall have the power, after notice and an
10opportunity to be heard, to levy and collect reasonable fines
11from unit owners for violations of the declaration, bylaws, and
12rules and regulations of the common interest community
13association.
14    (h) Other than attorney's fees and court costs, no fees
15pertaining to the collection of a unit owner's financial
16obligation to the association, including fees charged by a
17manager or managing agent, shall be added to and deemed a part
18of a unit owner's respective share of the common expenses
19unless: (i) the managing agent fees relate to the costs to
20collect common expenses for the association; (ii) the fees are
21set forth in a contract between the managing agent and the
22association; and (iii) the authority to add the management fees
23to a unit owner's respective share of the common expenses is
24specifically stated in the declaration or bylaws of the
25association.
26    (i) Board records.

 

 

09700SB1651sam001- 14 -LRB097 08355 AJO 54040 a

1        (1) The board shall maintain the following records of
2    the association and make them available for examination and
3    copying at convenient hours of weekdays by any unit owner
4    in a common interest community subject to the authority of
5    the board, their mortgagees, and their duly authorized
6    agents or attorneys:
7            (i) Copies of the recorded declaration, other
8        community instruments, other duly recorded covenants
9        and bylaws and any amendments, articles of
10        incorporation, annual reports, and any rules and
11        regulations adopted by the board shall be available.
12        Prior to the organization of the board, the developer
13        shall maintain and make available the records set forth
14        in this paragraph (i) for examination and copying.
15            (ii) Detailed and accurate records in
16        chronological order of the receipts and expenditures
17        affecting the common areas, specifying and itemizing
18        the maintenance and repair expenses of the common areas
19        and any other expenses incurred, and copies of all
20        contracts, leases, or other agreements entered into by
21        the board shall be maintained.
22            (iii) The minutes of all meetings of the board
23        which shall be maintained for not less than 7 years.
24            (iv) With a written statement of a proper purpose,
25        ballots and proxies related thereto, if any, for any
26        election held for the board and for any other matters

 

 

09700SB1651sam001- 15 -LRB097 08355 AJO 54040 a

1        voted on by the unit owners, which shall be maintained
2        for not less than one year.
3            (v) With a written statement of a proper purpose,
4        such other records of the board as are available for
5        inspection by members of a not-for-profit corporation
6        pursuant to Section 107.75 of the General Not For
7        Profit Corporation Act of 1986 shall be maintained.
8            (vi) With respect to units owned by a land trust, a
9        living trust, or other legal entity, the trustee,
10        officer, or manager of the entity may designate, in
11        writing, a person to cast votes on behalf of the unit
12        owner and a designation shall remain in effect until a
13        subsequent document is filed with the association.
14        (2) Where a request for records under this subsection
15    is made in writing to the board or its agent, failure to
16    provide the requested record or to respond within 30 days
17    shall be deemed a denial by the board.
18        (3) A reasonable fee may be charged by the board for
19    the cost of retrieving and copying records properly
20    requested.
21        (4) If the board fails to provide records properly
22    requested under paragraph (1) of this subsection (i) within
23    the time period provided in that paragraph (1), the unit
24    owner may seek appropriate relief and shall be entitled to
25    an award of reasonable attorney's fees and costs if the
26    unit owner prevails and the court finds that such failure

 

 

09700SB1651sam001- 16 -LRB097 08355 AJO 54040 a

1    is due to the acts or omissions of the board of managers or
2    the board of directors.
3    (j) The board shall have standing and capacity to act in a
4representative capacity in relation to matters involving the
5common areas or more than one unit, on behalf of the unit
6owners as their interests may appear.
7(Source: P.A. 96-1400, eff. 7-29-10.)
 
8    (765 ILCS 160/1-35)
9    Sec. 1-35. Unit owner powers, duties, and obligations.
10    (a) The provisions of this Act, the declaration, bylaws,
11other community instruments, and rules and regulations that
12relate to the use of an individual unit or the common areas
13shall be applicable to any person leasing a unit and shall be
14deemed to be incorporated in any lease executed or renewed on
15or after the effective date of this Act. With regard to any
16lease entered into subsequent to the effective date of this
17Act, the unit owner leasing the unit shall deliver a copy of
18the signed lease to the association or if the lease is oral, a
19memorandum of the lease, not later than the date of occupancy
20or 10 days after the lease is signed, whichever occurs first.
21    (b) If there are multiple owners of a single unit, only one
22of the multiple owners shall be eligible to serve as a member
23of the board at any one time.
24    (c) Two-thirds of the membership unit owners may remove a
25board member as a director at a duly duty called special

 

 

09700SB1651sam001- 17 -LRB097 08355 AJO 54040 a

1meeting of the unit owners.
2    (d) In the event of any resale of a unit in a common
3interest community association by a unit owner other than the
4developer, the board shall make available for inspection to the
5prospective purchaser, upon demand, the following:
6        (1) A copy of the declaration, other instruments, and
7    any rules and regulations.
8        (2) A statement of any liens, including a statement of
9    the account of the unit setting forth the amounts of unpaid
10    assessments and other charges due and owing.
11        (3) A statement of any capital expenditures
12    anticipated by the association within the current or
13    succeeding 2 fiscal years.
14        (4) A statement of the status and amount of any reserve
15    or for replacement fund and any other fund specifically
16    designated for association projects portion of such fund
17    earmarked for any specified project by the board.
18        (5) A copy of the statement of financial condition of
19    the association for the last fiscal year for which such a
20    statement is available.
21        (6) A statement of the status of any pending suits or
22    judgments in which the association is a party.
23        (7) A statement setting forth what insurance coverage
24    is provided for all unit owners by the association.
25        (8) A statement that any improvements or alterations
26    made to the unit, or any part of the common areas assigned

 

 

09700SB1651sam001- 18 -LRB097 08355 AJO 54040 a

1    thereto, by the prior unit owner are in good faith believed
2    to be in compliance with the declaration of the
3    association.
4    The principal officer of the board or such other officer as
5is specifically designated shall furnish the above information
6within 30 days after receiving a written request for such
7information.
8    A reasonable fee covering the direct out-of-pocket cost of
9copying and providing such information may be charged by the
10association or the board to the unit seller for providing the
11information.
12(Source: P.A. 96-1400, eff. 7-29-10.)
 
13    (765 ILCS 160/1-40)
14    Sec. 1-40. Meetings.
15    (a) Notice Written notice of any membership meeting shall
16be given detailing the time, place, and purpose of such meeting
17mailed or delivered giving members no less than 10 and no more
18than 30 days prior to the meeting through a prescribed delivery
19method notice of the time, place, and purpose of such meeting.
20    (b) Meetings.
21        (1) Twenty percent of the membership unit owners shall
22    constitute a quorum, unless the community instruments
23    indicate a lesser amount otherwise.
24        (2) The membership unit owners shall hold an annual
25    meeting, one of the purposes of which shall be to elect

 

 

09700SB1651sam001- 19 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 20 -LRB097 08355 AJO 54040 a

1    meeting, unless otherwise provided in Section 1-45 (a) or
2    any other provision of this Act.
3        (5) Meetings of the board shall be open to any unit
4    owner, except for the portion of any meeting held (i) to
5    discuss litigation when an action against or on behalf of
6    the particular association has been filed and is pending in
7    a court or administrative tribunal, or when the common
8    interest community association finds that such an action is
9    probable or imminent, (ii) to consider third party
10    contracts or information regarding appointment,
11    employment, or dismissal of an employee, or (iii) to
12    discuss violations of rules and regulations of the
13    association or a unit owner's unpaid share of common
14    expenses. Any vote on these matters shall be taken at a
15    meeting or portion thereof open to any unit owner.
16        (6) The board must reserve a portion of the meeting of
17    the board for comments by unit owners; provided, however,
18    the duration and meeting order for the unit owner comment
19    period is within the sole discretion of the board.
20(Source: P.A. 96-1400, eff. 7-29-10.)
 
21    (765 ILCS 160/1-45)
22    Sec. 1-45. Finances.
23    (a) Each unit owner shall receive through a prescribed
24delivery method, at least 30 days but not more than 60 days
25prior to the adoption thereof by the board, a copy of the

 

 

09700SB1651sam001- 21 -LRB097 08355 AJO 54040 a

1proposed annual budget together with an indication of which
2portions are intended for reserves, capital expenditures or
3repairs or payment of real estate taxes.
4    (b) The board shall provide all unit owners with a
5reasonably detailed summary of the receipts, common expenses,
6and reserves for the preceding budget year. The board shall (i)
7make available for review annually supply to all unit owners an
8itemized accounting of the common expenses for the preceding
9year actually incurred or paid, together with an indication of
10which portions were for reserves, capital expenditures or
11repairs or payment of real estate taxes and with a tabulation
12of the amounts collected pursuant to the budget or assessment,
13and showing the net excess or deficit of income over
14expenditures plus reserves or (ii) provide a consolidated
15annual independent audit report of the financial status of all
16fund accounts within the association.
17    (c) If an adopted budget or any separate assessment adopted
18by the board would result in the sum of all regular and
19separate assessments payable in the current fiscal year
20exceeding 115% of the sum of all regular and separate
21assessments payable during the preceding fiscal year, the
22common interest community association, upon written petition
23by unit owners with 20% of the votes of the association
24delivered to the board within 14 days of the board action,
25shall call a meeting of the unit owners within 30 days of the
26date of delivery of the petition to consider the budget or

 

 

09700SB1651sam001- 22 -LRB097 08355 AJO 54040 a

1separate assessment; unless a majority of the total votes of
2the unit owners are cast at the meeting to reject the budget or
3separate assessment, it shall be deemed ratified.
4    (d) Any common expense not set forth in the budget or any
5increase in assessments over the amount adopted in the budget
6shall be separately assessed against all unit owners.
7    (e) Separate assessments for expenditures relating to
8emergencies or mandated by law may be adopted by the board
9without being subject to unit owner approval or the provisions
10of subsection (c) or (f) of this Section. As used herein,
11"emergency" means an immediate danger to the structural
12integrity of the common areas or to the life, health, safety,
13or property of the unit owners.
14    (f) Assessments for additions and alterations to the common
15areas or to association-owned property not included in the
16adopted annual budget, shall be separately assessed and are
17subject to approval of two-thirds of the total members at a
18meeting called for that purpose votes of all unit owners.
19    (g) The board may adopt separate assessments payable over
20more than one fiscal year. With respect to multi-year
21assessments not governed by subsections (e) and (f) of this
22Section, the entire amount of the multi-year assessment shall
23be deemed considered and authorized in the first fiscal year in
24which the assessment is approved.
25    (h) The board of a common interest community association
26shall have the authority to establish and maintain a system of

 

 

09700SB1651sam001- 23 -LRB097 08355 AJO 54040 a

1master metering of public utility services to collect payments
2in conjunction therewith, subject to the requirements of the
3Tenant Utility Payment Disclosure Act.
4(Source: P.A. 96-1400, eff. 7-29-10.)
 
5    (765 ILCS 160/1-55)
6    Sec. 1-55. Fidelity insurance. An association with 30 or
7more units shall obtain and maintain fidelity insurance
8covering persons who control or disburse funds of the
9association for the maximum amount of coverage that is
10commercially or reasonably required available to protect funds
11in the custody or control of the association plus the
12association reserve fund. All management companies which are
13responsible for the funds held or administered by the
14association shall maintain and furnish to the association a
15fidelity bond for the maximum amount of coverage that is
16commercially or reasonably required available to protect funds
17in the custody of the management company at any time. The
18association shall bear the cost of the fidelity insurance and
19fidelity bond, unless otherwise provided by contract between
20the association and a management company.
21(Source: P.A. 96-1400, eff. 7-29-10.)
 
22    (765 ILCS 160/1-60)
23    Sec. 1-60. Errors and omissions.
24    (a) If there is an omission or error in the declaration or

 

 

09700SB1651sam001- 24 -LRB097 08355 AJO 54040 a

1other instrument of the association, the association may
2correct the error or omission by an amendment to the
3declaration or other instrument, as may be required to conform
4it to this Act, to any other applicable statute, or to the
5declaration. The amendment shall be adopted by vote of
6two-thirds of the members of the board of directors or by a
7majority vote of the members unit owners at a meeting called
8for that purpose, unless the Act or the declaration of the
9association specifically provides for greater percentages or
10different procedures.
11    (b) If, through a scrivener's error, a unit has not been
12designated as owning an appropriate undivided share of the
13common areas or does not bear an appropriate share of the
14common expenses, or if all of the common expenses or all of the
15common elements have not been distributed in the declaration,
16so that the sum total of the shares of common areas which have
17been distributed or the sum total of the shares of the common
18expenses fail to equal 100%, or if it appears that more than
19100% of the common elements or common expenses have been
20distributed, the error may be corrected by operation of law by
21filing an amendment to the declaration, approved by vote of
22two-thirds of the members of the board or a majority vote of
23the members unit owners at a meeting called for that purpose,
24which proportionately adjusts all percentage interests so that
25the total is equal to 100%, unless the declaration specifically
26provides for a different procedure or different percentage vote

 

 

09700SB1651sam001- 25 -LRB097 08355 AJO 54040 a

1by the owners of the units and the owners of mortgages thereon
2affected by modification being made in the undivided interest
3in the common areas, the number of votes in the association or
4the liability for common expenses appertaining to the unit.
5    (c) If a scrivener's error in the declaration or other
6instrument is corrected by vote of two-thirds of the members of
7the board pursuant to the authority established in subsection
8(a) or subsection (b), the board, upon written petition by
9members unit owners with 20% of the votes of the association
10received within 30 days of the board action, shall call a
11meeting of the members unit owners within 30 days of the filing
12of the petition to consider the board action. Unless a majority
13of the votes of the members unit owners of the association are
14cast at the meeting to reject the action, it is ratified
15whether or not a quorum is present.
16    (d) Nothing contained in this Section shall be construed to
17invalidate any provision of a declaration authorizing the
18developer to amend an instrument prior to the latest date on
19which the initial membership meeting of the unit owners must be
20held, whether or not it has actually been held, to bring the
21instrument into compliance with the legal requirements of the
22Federal National Mortgage Association, the Federal Home Loan
23Mortgage Corporation, the Federal Housing Administration, the
24United States Department of Veterans Affairs, or their
25respective successors and assigns.
26(Source: P.A. 96-1400, eff. 7-29-10.)
 

 

 

09700SB1651sam001- 26 -LRB097 08355 AJO 54040 a

1    (765 ILCS 160/1-75)
2    Sec. 1-75. Exemptions for small community interest
3communities.
4    (a) A common interest community association organized
5under the General Not for Profit Corporation Act of 1986 and
6having either (i) 10 units or less or (ii) annual budgeted
7assessments of $100,000 or less shall be exempt from this Act
8unless the association affirmatively elects to be covered by
9this Act by a majority of its directors or members and unit
10owners.
11    (b) Common interest community associations which in their
12declaration, bylaws, or other governing documents provide that
13the association may not use the courts or an arbitration
14process to collect or enforce assessments, fines, or similar
15levies and common interest community associations (i) of 10
16units or less or (ii) having annual budgeted assessments of
17$50,000 or less shall be exempt from subsection (a) of Section
181-30, subsections (a) and (b) of Section 1-40, and Section 1-55
19but shall be required to provide notice of meetings to unit
20owners in a manner and at a time that will allow unit owners to
21participate in those meetings.
22(Source: P.A. 96-1400, eff. 7-29-10.)
 
23    (765 ILCS 160/1-80 new)
24    Sec. 1-80. Compliance. A common interest community

 

 

09700SB1651sam001- 27 -LRB097 08355 AJO 54040 a

1association shall be in full compliance with the provisions of
2this Act no later than January 1, 2012.
 
3    Section 10. The Condominium Property Act is amended by
4changing Section 18.5 as follows:
 
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

 

 

09700SB1651sam001- 28 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 29 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 30 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 31 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 32 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 33 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 34 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 35 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 36 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 37 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 38 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 39 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 40 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 41 -LRB097 08355 AJO 54040 a

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

 

 

09700SB1651sam001- 42 -LRB097 08355 AJO 54040 a

1    units and the owners of mortgages thereon affected by
2    modification being made in the undivided interest in the
3    common areas, the number of votes in the unit owners
4    association or the liability for common expenses
5    appertaining to the unit.
6        (3) If an omission or error or a scrivener's error in
7    the declaration or other instrument is corrected by vote of
8    two-thirds of the members of the board of directors
9    pursuant to the authority established in subdivisions
10    (h)(1) or (h)(2) of this Section, the board, upon written
11    petition by unit owners with 20% of the votes of the
12    association or resolutions adopted by the board of managers
13    or board of directors of the condominium and common
14    interest community associations which select 20% of the
15    members of the board of directors of the master
16    association, whichever is applicable, received within 30
17    days of the board action, shall call a meeting of the unit
18    owners or the boards of the condominium and common interest
19    community associations which select members of the board of
20    directors of the master association within 30 days of the
21    filing of the petition or receipt of the condominium and
22    common interest community association resolution to
23    consider the board action. Unless a majority of the votes
24    of the unit owners of the association are cast at the
25    meeting to reject the action, or board of managers or board
26    of directors of condominium and common interest community

 

 

09700SB1651sam001- 43 -LRB097 08355 AJO 54040 a

1    associations which select over 50% of the members of the
2    board of the master association adopt resolutions prior to
3    the meeting rejecting the action of the board of directors
4    of the master association, it is ratified whether or not a
5    quorum is present.
6        (4) The procedures for amendments set forth in this
7    subsection (h) cannot be used if such an amendment would
8    materially or adversely affect property rights of the unit
9    owners unless the affected unit owners consent in writing.
10    This Section does not restrict the powers of the
11    association to otherwise amend the declaration, bylaws, or
12    other condominium instruments, but authorizes a simple
13    process of amendment requiring a lesser vote for the
14    purpose of correcting defects, errors, or omissions when
15    the property rights of the unit owners are not materially
16    or adversely affected.
17        (5) If there is an omission or error in the declaration
18    or other instruments that may not be corrected by an
19    amendment procedure set forth in subdivision (h)(1) or
20    (h)(2) of this Section, then the circuit court in the
21    county in which the master association is located shall
22    have jurisdiction to hear a petition of one or more of the
23    unit owners thereon or of the association, to correct the
24    error or omission, and the action may be a class action.
25    The court may require that one or more methods of
26    correcting the error or omission be submitted to the unit

 

 

09700SB1651sam001- 44 -LRB097 08355 AJO 54040 a

1    owners to determine the most acceptable correction. All
2    unit owners in the association must be joined as parties to
3    the action. Service of process on owners may be by
4    publication, but the plaintiff shall furnish all unit
5    owners not personally served with process with copies of
6    the petition and final judgment of the court by certified
7    mail, return receipt requested, at their last known
8    address.
9        (6) Nothing contained in this Section shall be
10    construed to invalidate any provision of a declaration
11    authorizing the developer to amend an instrument prior to
12    the latest date on which the initial membership meeting of
13    the unit owners must be held, whether or not it has
14    actually been held, to bring the instrument into compliance
15    with the legal requirements of the Federal National
16    Mortgage Association, the Federal Home Loan Mortgage
17    Corporation, the Federal Housing Administration, the
18    United States Veterans Administration or their respective
19    successors and assigns.
20    (i) The provisions of subsections (c) through (h) are
21applicable to all declarations, other condominium instruments,
22and other duly recorded covenants establishing the powers and
23duties of the master association recorded under this Act. Any
24portion of a declaration, other condominium instrument, or
25other duly recorded covenant establishing the powers and duties
26of a master association which contains provisions contrary to

 

 

09700SB1651sam001- 45 -LRB097 08355 AJO 54040 a

1the provisions of subsection (c) through (h) shall be void as
2against public policy and ineffective. Any declaration, other
3condominium instrument, or other duly recorded covenant
4establishing the powers and duties of the master association
5which fails to contain the provisions required by subsections
6(c) through (h) shall be deemed to incorporate such provisions
7by operation of law.
8    (j) (Blank). The provisions of subsections (c) through (h)
9are applicable to all common interest community associations
10and their unit owners for common interest community
11associations which are subject to the provisions of Section
129-102(a)(8) of the Code of Civil Procedure. For purposes of
13this subsection, the terms "common interest community" and
14"unit owners" shall have the same meaning as set forth in
15Section 9-102(c) of the Code of Civil Procedure.
16(Source: P.A. 96-1045, eff. 7-14-10.)
 
17    Section 999. Effective date. This Act takes effect upon
18becoming law.".