SB3572 EngrossedLRB097 18505 AJO 63736 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, 1-50, 1-60, 1-70, and 1-75 as follows:
 
7    (765 ILCS 160/1-5)
8    Sec. 1-5. Definitions. As used in this Act, unless the
9context otherwise requires:
10    "Association" or "common interest community association"
11means the association of all the members unit owners of a
12common interest community, acting pursuant to bylaws through
13its duly elected board of managers or board of directors.
14    "Board" means a common interest community association's
15board of managers or board of directors, whichever is
16applicable.
17    "Board member" or "member of the board" means a member of
18the board of managers or the board of directors, whichever is
19applicable.
20    "Board of directors" means, for a common interest community
21that has been incorporated as an Illinois not-for-profit
22corporation, the group of people elected by the members unit
23owners of a common interest community as the governing body to

 

 

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1exercise for the members unit owners of the common interest
2community association all powers, duties, and authority vested
3in the board of directors under this Act and the common
4interest community association's declaration and bylaws.
5    "Board of managers" means, for a common interest community
6that is an unincorporated association, the group of people
7elected by the members unit owners of a common interest
8community as the governing body to exercise for the members
9unit owners of the common interest community association all
10powers, duties, and authority vested in the board of managers
11under this Act and the common interest community association's
12declaration and bylaws.
13    "Building" means all structures, attached or unattached,
14containing one or more units.
15    "Common areas" means the portion of the property other than
16a unit.
17    "Common expenses" means the proposed or actual expenses
18affecting the property, including reserves, if any, lawfully
19assessed by the common interest community association.
20    "Common interest community" means real estate other than a
21condominium or cooperative with respect to which any person by
22virtue of his or her ownership of a partial interest or a unit
23therein is obligated to pay for the maintenance, improvement,
24insurance premiums or real estate taxes of common areas
25described in a declaration which is administered by an
26association. "Common interest community" may include, but not

 

 

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

 

 

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1"Majority" or "majority of the members of the board of the
2common interest community association" means more than 50% of
3the total number of persons constituting such board pursuant to
4the bylaws. Any specified percentage of the members of the
5common interest community association means that percentage of
6the total number of persons constituting such board pursuant to
7the 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    "Meeting of the board" or "board meeting" means any
16gathering of a quorum of the members of the board of the common
17interest community association held for the purpose of
18conducting board business.
19    "Member" means the person or entity designated as an owner
20and entitled to one vote as defined by the community
21instruments.
22    "Membership" means the collective group of members
23entitled to vote as defined by the community instruments.
24    "Parcel" means the lot or lots or tract or tracts of land
25described in the declaration as part of a common interest
26community.

 

 

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

 

 

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1    "Reserves" means those sums paid by members unit owners
2which are separately maintained by the common interest
3community association for purposes specified by the
4declaration and bylaws of the common interest community
5association.
6    "Unit" means a part of the property designed and intended
7for any type of independent use.
8    "Unit owner" means the person or persons whose estates or
9interests, individually or collectively, aggregate fee simple
10absolute ownership of a unit.
11(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
12    (765 ILCS 160/1-15)
13    Sec. 1-15. Construction, interpretation, and validity of
14community instruments.
15    (a) Except to the extent otherwise provided by the
16declaration or other community instruments, the terms defined
17in Section 1-5 of this Act shall be deemed to have the meaning
18specified therein unless the context otherwise requires.
19    (b) All provisions of the declaration, bylaws, and other
20community instruments severed by this Act shall be revised by
21the board of directors independent of the membership to comply
22with this Act are severable.
23    (c) A provision in the declaration limiting ownership,
24rental, or occupancy of a unit to a person 55 years of age or
25older shall be valid and deemed not to be in violation of

 

 

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1Article 3 of the Illinois Human Rights Act provided that the
2person or the immediate family of a person owning, renting, or
3lawfully occupying such unit prior to the recording of the
4initial declaration shall not be deemed to be in violation of
5such age restriction so long as they continue to own or reside
6in such unit.
7    (d) Every common interest community association shall
8define a member and its relationship to the units or unit
9owners in its community instruments.
10(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
11    (765 ILCS 160/1-20)
12    Sec. 1-20. Amendments to the declaration or bylaws.
13    (a) The administration of every property shall be governed
14by the declaration and bylaws, which may either be embodied in
15the declaration or in a separate instrument, a true copy of
16which shall be appended to and recorded with the declaration.
17No modification or amendment of the declaration or bylaws shall
18be valid unless the same is set forth in an amendment thereof
19and such amendment is duly recorded. An amendment of the
20declaration or bylaws shall be deemed effective upon
21recordation, unless the amendment sets forth a different
22effective date.
23    (b) Unless otherwise provided by this Act, amendments to
24community instruments authorized to be recorded shall be
25executed and recorded by the president of the board or such

 

 

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1other officer authorized by the common interest community
2association or the community instruments.
3    (c) If an association that currently permits leasing amends
4its declaration, bylaws, or rules and regulations to prohibit
5leasing, nothing in this Act or the declarations, bylaws, rules
6and regulations of an association shall prohibit a unit owner
7incorporated under 26 USC 501(c)(3) which is leasing a unit at
8the time of the prohibition from continuing to do so until such
9time that the unit owner voluntarily sells the unit; and no
10special fine, fee, dues, or penalty shall be assessed against
11the unit owner for leasing its unit.
12    (d) No action to incorporate a common interest community as
13a municipality shall commence until an instrument agreeing to
14incorporation has been signed by two-thirds of the members.
15(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
16    (765 ILCS 160/1-25)
17    Sec. 1-25. Board of managers, board of directors, duties,
18elections, and voting.
19    (a) Routine scheduled elections shall be held in accordance
20with the community instruments for There shall be an annual
21election of the board of managers or board of directors from
22among the membership of a common interest community
23association.
24    (b) (Blank).
25    (c) The members of the board shall serve without

 

 

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1compensation, unless the community instruments indicate
2otherwise.
3    (d) No member of the board or officer shall be elected for
4a term of more than 4 3 years, but officers and board members
5may succeed themselves.
6    (e) If there is a vacancy on the board, the remaining
7members of the board may fill the vacancy by a two-thirds vote
8of the remaining board members until the next annual meeting of
9the membership or until members holding 20% of the votes of the
10association request a meeting of the members to fill the
11vacancy for the balance of the term. A meeting of the members
12shall be called for purposes of filling a vacancy on the board
13no later than 30 days following the filing of a petition signed
14by membership holding 20% of the votes of the association
15requesting such a meeting.
16    (f) There shall be an election of a:
17        (1) president from among the members of the board, who
18    shall preside over the meetings of the board and of the
19    membership;
20        (2) secretary from among the members of the board, who
21    shall keep the minutes of all meetings of the board and of
22    the membership and who shall, in general, perform all the
23    duties incident to the office of secretary; 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 may bring an action to compel compliance with the
4election requirements specified in the bylaws. If the court
5finds that an election was not held to elect members of the
6board within the required period due to the bad faith acts or
7omissions of the board of managers or the board of directors,
8the members unit owners shall be entitled to recover their
9reasonable attorney's fees and costs from the association. If
10the relevant notice requirements have been met and an election
11is not held solely due to a lack of a quorum, then this
12subsection (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, he or she is entitled to cast the member vote
17associated with that unit.
18    (h-5) A member may vote:
19        (1) by proxy executed in writing by the member or by
20    his or her duly authorized attorney in fact, provided,
21    however, that the proxy bears the date of execution. Unless
22    the community instruments or the written proxy itself
23    provide otherwise, proxies will not be valid for more than
24    11 months after the date of its execution; or
25        (2) by submitting an association-issued ballot in
26    person at the election meeting; or

 

 

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1        (3) by submitting an association-issued ballot to the
2    association or its designated agent by mail or other means
3    of delivery specified in the declaration or bylaws.
4    (i) The association may, upon adoption of the appropriate
5rules by the board, conduct elections by secret ballot,
6distributed by the association, whereby the voting ballot is
7marked only with the voting interest for the member and the
8vote itself, provided that the association shall further adopt
9rules to verify the status of the member issuing a proxy or
10casting a ballot. A candidate for election to the board or such
11candidate's representative shall have the right to be present
12at the counting of ballots at such election.
13    (j) Upon proof of purchase, the purchaser of a unit from a
14seller other than the developer pursuant to an installment
15contract for purchase shall, during such times as he or she
16resides in the unit, be counted toward a quorum for purposes of
17election of members of the board at any meeting of the
18membership called for purposes of electing members of the
19board, shall have the right to vote for the members of the
20board of the common interest community association and to be
21elected to and serve on the board unless the seller expressly
22retains in writing any or all of such rights.
23(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
24    (765 ILCS 160/1-30)
25    Sec. 1-30. Board duties and obligations; records.

 

 

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1    (a) The board shall meet at least 4 times annually.
2    (b) A member of the board of the common interest community
3association may not enter into a contract with a current board
4member, or with a corporation or partnership in which a board
5member or a member of his or her immediate family has 25% or
6more interest, unless notice of intent to enter into the
7contract is given to members unit owners within 20 days after a
8decision is made to enter into the contract and the members
9unit owners are afforded an opportunity by filing a petition,
10signed by 20% of the membership, for an election to approve or
11disapprove the contract; such petition shall be filed within 20
12days after such notice and such election shall be held within
1330 days after filing the petition. For purposes of this
14subsection, a board member's immediate family means the board
15member's spouse, parents, and children.
16    (c) The bylaws shall provide for the maintenance, repair,
17and replacement of the common areas and payments therefor,
18including the method of approving payment vouchers.
19    (d) (Blank).
20    (e) The association may engage the services of a manager or
21management company.
22    (f) The association shall have one class of membership
23unless the declaration or bylaws provide otherwise; however,
24this subsection (f) shall not be construed to limit the
25operation of subsection (c) of Section 1-20 of this Act.
26    (g) The board shall have the power, after notice and an

 

 

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1opportunity to be heard, to levy and collect reasonable fines
2from members unit owners for violations of the declaration,
3bylaws, and rules and regulations of the common interest
4community association.
5    (h) Other than attorney's fees and court or arbitration
6costs, no fees pertaining to the collection of a member's unit
7owner's financial obligation to the association, including
8fees charged by a manager or managing agent, shall be added to
9and deemed a part of a member's unit owner's respective share
10of the common expenses unless: (i) the managing agent fees
11relate to the costs to collect common expenses for the
12association; (ii) the fees are set forth in a contract between
13the managing agent and the association; and (iii) the authority
14to add the management fees to a member's unit owner's
15respective share of the common expenses is specifically stated
16in the declaration or bylaws of the association.
17    (i) Board records.
18        (1) The board shall maintain the following records of
19    the association and make them available for examination and
20    copying at convenient hours of weekdays by any member unit
21    owner in a common interest community subject to the
22    authority of the board, their mortgagees, and their duly
23    authorized agents or attorneys:
24            (i) Copies of the recorded declaration, other
25        community instruments, other duly recorded covenants
26        and bylaws and any amendments, articles of

 

 

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1        incorporation, annual reports, and any rules and
2        regulations adopted by the board shall be available.
3        Prior to the organization of the board, the developer
4        shall maintain and make available the records set forth
5        in this paragraph (i) for 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 board shall be maintained.
13            (iii) The minutes of all meetings of the board
14        which shall be maintained for not less than 7 years.
15            (iv) With a written statement of a proper purpose,
16        ballots and proxies related thereto, if any, for any
17        election held for the board and for any other matters
18        voted on by the members unit owners, which shall be
19        maintained for not less than one year.
20            (v) With a written statement of a proper purpose,
21        such other records of the board as are available for
22        inspection by members of a not-for-profit corporation
23        pursuant to Section 107.75 of the General Not For
24        Profit Corporation Act of 1986 shall be maintained.
25            (vi) With respect to units owned by a land trust, a
26        living trust, or other legal entity, the trustee,

 

 

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1        officer, or manager of the entity may designate, in
2        writing, a person to cast votes on behalf of the member
3        unit owner and a designation shall remain in effect
4        until a subsequent document is filed with the
5        association.
6        (2) Where a request for records under this subsection
7    is made in writing to the board or its agent, failure to
8    provide the requested record or to respond within 30 days
9    shall be deemed a denial by the board.
10        (3) A reasonable fee may be charged by the board for
11    the cost of retrieving and copying records properly
12    requested.
13        (4) If the board fails to provide records properly
14    requested under paragraph (1) of this subsection (i) within
15    the time period provided in that paragraph (1), the member
16    unit owner may seek appropriate relief and shall be
17    entitled to an award of reasonable attorney's fees and
18    costs if the member unit owner prevails and the court finds
19    that such failure is due to the acts or omissions of the
20    board of managers or the board of directors.
21    (j) The board shall have standing and capacity to act in a
22representative capacity in relation to matters involving the
23common areas or more than one unit, on behalf of the members
24unit owners as their interests may appear.
25(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 

 

 

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1    (765 ILCS 160/1-35)
2    Sec. 1-35. Member Unit owner powers, duties, and
3obligations.
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 member unit owner leasing the unit shall deliver a
12copy of the signed lease to the association or if the lease is
13oral, a memorandum of the lease, not later than the date of
14occupancy or 10 days after the lease is signed, whichever
15occurs first.
16    (b) If there are multiple owners of a single unit, only one
17of the multiple owners shall be eligible to serve as a member
18of the board at any one time, unless the member owns another
19unit independently.
20    (c) Two-thirds of the membership may remove a board member
21as a director at a duly called special meeting.
22    (d) In the event of any resale of a unit in a common
23interest community association by a member unit owner other
24than the developer, the board shall make available for
25inspection to the prospective purchaser, upon demand, the
26following:

 

 

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1        (1) A copy of the declaration, other instruments, and
2    any rules and regulations.
3        (2) A statement of any liens, including a statement of
4    the account of the unit setting forth the amounts of unpaid
5    assessments and other charges due and owing.
6        (3) A statement of any capital expenditures
7    anticipated by the association within the current or
8    succeeding 2 fiscal years.
9        (4) A statement of the status and amount of any reserve
10    or replacement fund and any other fund specifically
11    designated for association projects.
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 members unit owners by the association
19    for common properties.
20    The principal officer of the board or such other officer as
21is specifically designated shall furnish the above information
22within 30 days after receiving a written request for such
23information.
24    A reasonable fee covering the direct out-of-pocket cost of
25copying and providing such information may be charged by the
26association or the board to the unit seller for providing the

 

 

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1information.
2(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
3    (765 ILCS 160/1-40)
4    Sec. 1-40. Meetings.
5    (a) Notice of any membership meeting shall be given
6detailing the time, place, and purpose of such meeting no less
7than 10 and no more than 30 days prior to the meeting through a
8prescribed delivery method.
9    (b) Meetings.
10        (1) Twenty percent of the membership shall constitute a
11    quorum, unless the community instruments indicate a lesser
12    amount.
13        (2) The membership shall hold an annual meeting. The
14    board of directors may be elected at the annual meeting.
15        (3) Special meetings of the board may be called by the
16    president, by 25% of the members of the board, or by any
17    other method that is prescribed in the community
18    instruments. Special meetings of the membership may be
19    called by the president, the board, 20% of the membership,
20    or any other method that is prescribed in the community
21    instruments.
22        (4) Except to the extent otherwise provided by this
23    Act, the board shall give the members unit owners notice of
24    all board meetings at least 48 hours prior to the meeting
25    by sending notice by using a prescribed delivery method or

 

 

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1    by posting copies of notices of meetings in entranceways,
2    elevators, or other conspicuous places in the common areas
3    of the common interest community at least 48 hours prior to
4    the meeting except where there is no common entranceway for
5    7 or more units, the board may designate one or more
6    locations in the proximity of these units where the notices
7    of meetings shall be posted. The board shall give members
8    unit owners notice of any board meeting, through a
9    prescribed delivery method, concerning the adoption of (i)
10    the proposed annual budget, (ii) regular assessments, or
11    (iii) a separate or special assessment within 10 to 60 days
12    prior to the meeting, unless otherwise provided in Section
13    1-45 (a) or any other provision of this Act.
14        (5) Meetings of the board shall be open to any unit
15    owner, except for the portion of any meeting held (i) to
16    discuss litigation when an action against or on behalf of
17    the particular association has been filed and is pending in
18    a court or administrative tribunal, or when the common
19    interest community association finds that such an action is
20    probable or imminent, (ii) to consider third party
21    contracts or information regarding appointment,
22    employment, or dismissal of an employee, or (iii) to
23    discuss violations of rules and regulations of the
24    association or a member's unit owner's unpaid share of
25    common expenses. Any vote on these matters shall be taken
26    at a meeting or portion thereof open to any member unit

 

 

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1    owner.
2        (6) The board must reserve a portion of the meeting of
3    the board for comments by members unit owners; provided,
4    however, the duration and meeting order for the member unit
5    owner comment period is within the sole discretion of the
6    board.
7(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
8    (765 ILCS 160/1-45)
9    Sec. 1-45. Finances.
10    (a) Each member unit owner shall receive through a
11prescribed delivery method, at least 30 days but not more than
1260 days prior to the adoption thereof by the board, a copy of
13the proposed annual budget together with an indication of which
14portions are intended for reserves, capital expenditures or
15repairs or payment of real estate taxes.
16    (b) The board shall provide all members unit owners with a
17reasonably detailed summary of the receipts, common expenses,
18and reserves for the preceding budget year. The board shall (i)
19make available for review to all members unit owners an
20itemized accounting of the common expenses for the preceding
21year actually incurred or paid, together with an indication of
22which portions were for reserves, capital expenditures or
23repairs or payment of real estate taxes and with a tabulation
24of the amounts collected pursuant to the budget or assessment,
25and showing the net excess or deficit of income over

 

 

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1expenditures plus reserves or (ii) provide a consolidated
2annual independent audit report of the financial status of all
3fund accounts within the association.
4    (c) If an adopted budget or any separate assessment adopted
5by the board would result in the sum of all regular and
6separate assessments payable in the current fiscal year
7exceeding 115% of the sum of all regular and separate
8assessments payable during the preceding fiscal year, the
9common interest community association, upon written petition
10by members unit owners with 20% of the votes of the association
11delivered to the board within 14 days of the board action,
12shall call a meeting of the members unit owners within 30 days
13of the date of delivery of the petition to consider the budget
14or separate assessment; unless a majority of the total votes of
15the members unit owners are cast at the meeting to reject the
16budget or separate assessment, it shall be deemed ratified.
17    (d) If total common expenses exceed the total amount of the
18approved and adopted budget, the common interest community
19association shall disclose this variance to all its members and
20specifically identify the subsequent assessments needed to
21offset this variance in future budgets. Any common expense not
22set forth in the budget or any increase in assessments over the
23amount adopted in the budget shall be separately assessed
24against all unit owners.
25    (e) Separate assessments for expenditures relating to
26emergencies or mandated by law may be adopted by the board

 

 

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1without being subject to member unit owner approval or the
2provisions of subsection (c) or (f) of this Section. As used
3herein, "emergency" means a danger to or a compromise of the
4structural integrity of the common areas or any of the common
5assets of the common interest community. "Emergency" also
6includes a danger to the life, health, safety, or welfare of
7the membership an immediate danger to the structural integrity
8of the common areas or to the life, health, safety, or property
9of the unit owners.
10    (f) Assessments for additions and alterations to the common
11areas or to association-owned property not included in the
12adopted annual budget, shall be separately assessed and are
13subject to approval of a simple majority two-thirds of the
14total members at a meeting called for that purpose.
15    (g) The board may adopt separate assessments payable over
16more than one fiscal year. With respect to multi-year
17assessments not governed by subsections (e) and (f) of this
18Section, the entire amount of the multi-year assessment shall
19be deemed considered and authorized in the first fiscal year in
20which the assessment is approved.
21    (h) The board of a common interest community association
22shall have the authority to establish and maintain a system of
23master metering of public utility services to collect payments
24in conjunction therewith, subject to the requirements of the
25Tenant Utility Payment Disclosure Act.
26(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 

 

 

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1    (765 ILCS 160/1-50)
2    Sec. 1-50. Administration of property prior to election of
3the initial board of directors.
4    (a) Until the election of the initial board whose
5declaration is recorded on or after the effective date of this
6Act, the same rights, titles, powers, privileges, trusts,
7duties, and obligations that are vested in or imposed upon the
8board by this Act or in the declaration or other duly recorded
9covenant shall be held and performed by the developer.
10    (b) The election of the initial board, whose declaration is
11recorded on or after the effective date of this Act, shall be
12held not later than 60 days after the conveyance by the
13developer of 75% of the units, or 3 years after the recording
14of the declaration, whichever is earlier. The developer shall
15give at least 21 days' notice of the meeting to elect the
16initial board of directors and shall upon request provide to
17any member unit owner, within 3 working days of the request,
18the names, addresses, and weighted vote of each member unit
19owner entitled to vote at the meeting. Any member unit owner
20shall, upon receipt of the request, be provided with the same
21information, within 10 days after the request, with respect to
22each subsequent meeting to elect members of the board of
23directors.
24    (c) If the initial board of a common interest community
25association whose declaration is recorded on or after the

 

 

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1effective date of this Act is not elected by the time
2established in subsection (b), the developer shall continue in
3office for a period of 30 days, whereupon written notice of his
4or her resignation shall be sent to all of the unit owners or
5members.
6    (d) Within 60 days following the election of a majority of
7the board, other than the developer, by members unit owners,
8the developer shall deliver to the board:
9        (1) All original documents as recorded or filed
10    pertaining to the property, its administration, and the
11    association, such as the declaration, articles of
12    incorporation, other instruments, annual reports, minutes,
13    rules and regulations, and contracts, leases, or other
14    agreements entered into by the association. If any original
15    documents are unavailable, a copy may be provided if
16    certified by affidavit of the developer, or an officer or
17    agent of the developer, as being a complete copy of the
18    actual document recorded or filed.
19        (2) A detailed accounting by the developer, setting
20    forth the source and nature of receipts and expenditures in
21    connection with the management, maintenance, and operation
22    of the property, copies of all insurance policies, and a
23    list of any loans or advances to the association which are
24    outstanding.
25        (3) Association funds, which shall have been at all
26    times segregated from any other moneys of the developer.

 

 

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1        (4) A schedule of all real or personal property,
2    equipment, and fixtures belonging to the association,
3    including documents transferring the property, warranties,
4    if any, for all real and personal property and equipment,
5    deeds, title insurance policies, and all tax bills.
6        (5) A list of all litigation, administrative action,
7    and arbitrations involving the association, any notices of
8    governmental bodies involving actions taken or which may be
9    taken concerning the association, engineering and
10    architectural drawings and specifications as approved by
11    any governmental authority, all other documents filed with
12    any other governmental authority, all governmental
13    certificates, correspondence involving enforcement of any
14    association requirements, copies of any documents relating
15    to disputes involving members unit owners, and originals of
16    all documents relating to everything listed in this
17    paragraph.
18        (6) If the developer fails to fully comply with this
19    subsection (d) within the 60 days provided and fails to
20    fully comply within 10 days after written demand mailed by
21    registered or certified mail to his or her last known
22    address, the board may bring an action to compel compliance
23    with this subsection (d). If the court finds that any of
24    the required deliveries were not made within the required
25    period, the board shall be entitled to recover its
26    reasonable attorney's fees and costs incurred from and

 

 

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1    after the date of expiration of the 10-day demand.
2    (e) With respect to any common interest community
3association whose declaration is recorded on or after the
4effective date of this Act, any contract, lease, or other
5agreement made prior to the election of a majority of the board
6other than the developer by or on behalf of members unit owners
7or underlying common interest community association, the
8association or the board, which extends for a period of more
9than 2 years from the recording of the declaration, shall be
10subject to cancellation by more than one-half of the votes of
11the members unit owners, other than the developer, cast at a
12special meeting of members called for that purpose during a
13period of 90 days prior to the expiration of the 2-year period
14if the board is elected by the members unit owners, otherwise
15by more than one-half of the underlying common interest
16community association board. At least 60 days prior to the
17expiration of the 2-year period, the board or, if the board is
18still under developer control, the developer shall send notice
19to every member unit owner notifying them of this provision, of
20what contracts, leases, and other agreements are affected, and
21of the procedure for calling a meeting of the members unit
22owners or for action by the board for the purpose of acting to
23terminate such contracts, leases or other agreements. During
24the 90-day period the other party to the contract, lease, or
25other agreement shall also have the right of cancellation.
26    (f) The statute of limitations for any actions in law or

 

 

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1equity that the board may bring shall not begin to run until
2the members unit owners have elected a majority of the members
3of the board.
4(Source: P.A. 96-1400, eff. 7-29-10.)
 
5    (765 ILCS 160/1-60)
6    Sec. 1-60. Errors and omissions.
7    (a) If there is an omission or error in the declaration or
8other instrument of the association, the association may
9correct the error or omission by an amendment to the
10declaration or other instrument, as may be required to conform
11it to this Act, to any other applicable statute, or to the
12declaration. The amendment shall be adopted by vote of
13two-thirds of the members of the board of directors or by a
14majority vote of the members at a meeting called for that
15purpose, unless the Act or the declaration of the association
16specifically provides for greater percentages or different
17procedures.
18    (b) If, through a scrivener's error, a unit has not been
19designated as owning an appropriate undivided share of the
20common areas or does not bear an appropriate share of the
21common expenses, or if all of the common expenses or all of the
22common elements have not been distributed in the declaration,
23so that the sum total of the shares of common areas which have
24been distributed or the sum total of the shares of the common
25expenses fail to equal 100%, or if it appears that more than

 

 

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1100% of the common elements or common expenses have been
2distributed, the error may be corrected by operation of law by
3filing an amendment to the declaration, approved by vote of
4two-thirds of the members of the board or a majority vote of
5the members at a meeting called for that purpose, which
6proportionately adjusts all percentage interests so that the
7total is equal to 100%, unless the declaration specifically
8provides for a different procedure or different percentage vote
9by the owners of the units and the owners of mortgages thereon
10affected by modification being made in the undivided interest
11in the common areas, the number of votes in the association or
12the liability for common expenses appertaining to the unit.
13    (c) If a scrivener's error in the declaration or other
14instrument is corrected by vote of two-thirds of the members of
15the board pursuant to the authority established in subsection
16(a) or subsection (b), the board, upon written petition by
17members with 20% of the votes of the association received
18within 30 days of the board action, shall call a meeting of the
19members within 30 days of the filing of the petition to
20consider the board action. Unless a majority of the votes of
21the members of the association are cast at the meeting to
22reject the action, it is ratified whether or not a quorum is
23present.
24    (d) Nothing contained in this Section shall be construed to
25invalidate any provision of a declaration authorizing the
26developer to amend an instrument prior to the latest date on

 

 

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1which the initial membership meeting of the members unit owners
2must be held, whether or not it has actually been held, to
3bring the instrument into compliance with the legal
4requirements of the Federal National Mortgage Association, the
5Federal Home Loan Mortgage Corporation, the Federal Housing
6Administration, the United States Department of Veterans
7Affairs, or their respective successors and assigns.
8(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
9    (765 ILCS 160/1-70)
10    Sec. 1-70. Display of American flag or military flag.
11    (a) Notwithstanding any provision in the declaration,
12bylaws, community instruments, rules, regulations, or
13agreements or other instruments of a common interest community
14association or a board's construction of any of those
15instruments, a board may not prohibit the display of the
16American flag or a military flag, or both, on or within the
17limited common areas and facilities of a member unit owner or
18on the immediately adjacent exterior of the building in which
19the unit of a member unit owner is located. A board may adopt
20reasonable rules and regulations, consistent with Sections 4
21through 10 of Chapter 1 of Title 4 of the United States Code,
22regarding the placement and manner of display of the American
23flag and a board may adopt reasonable rules and regulations
24regarding the placement and manner of display of a military
25flag. A board may not prohibit the installation of a flagpole

 

 

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1for the display of the American flag or a military flag, or
2both, on or within the limited common areas and facilities of a
3member unit owner or on the immediately adjacent exterior of
4the building in which the unit of a member unit owner is
5located, but a board may adopt reasonable rules and regulations
6regarding the location and size of flagpoles.
7    (b) As used in this Section:
8        "American flag" means the flag of the United States (as
9    defined in Section 1 of Chapter 1 of Title 4 of the United
10    States Code and the Executive Orders entered in connection
11    with that Section) made of fabric, cloth, or paper
12    displayed from a staff or flagpole or in a window, but
13    "American flag" does not include a depiction or emblem of
14    the American flag made of lights, paint, roofing, siding,
15    paving materials, flora, or balloons, or any other similar
16    building, landscaping, or decorative component.
17        "Military flag" means a flag of any branch of the
18    United States armed forces or the Illinois National Guard
19    made of fabric, cloth, or paper displayed from a staff or
20    flagpole or in a window, but "military flag" does not
21    include a depiction or emblem of a military flag made of
22    lights, paint, roofing, siding, paving materials, flora,
23    or balloons, or any other similar building, landscaping, or
24    decorative component.
25(Source: P.A. 96-1400, eff. 7-29-10.)
 

 

 

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1    (765 ILCS 160/1-75)
2    Sec. 1-75. Exemptions for small common 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.
10    (b) Common interest community associations which in their
11declaration, bylaws, or other governing documents provide that
12the association may not use the courts or an arbitration
13process to collect or enforce assessments, fines, or similar
14levies and common interest community associations (i) of 10
15units or less or (ii) having annual budgeted assessments of
16$50,000 or less shall be exempt from subsection (a) of Section
171-30, subsections (a) and (b) of Section 1-40, and Section 1-55
18but shall be required to provide notice of meetings to members
19unit owners in a manner and at a time that will allow members
20unit owners to participate in those meetings.
21(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.