SB3572 EnrolledLRB097 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, 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. The terms "member" and "unit owner" may be used
22interchangeably as defined by the community instruments,
23except in situations in which a matter of legal title to the
24unit is involved or at issue, in which case the term "unit
25owner" would be the applicable term used.
26    "Membership" means the collective group of members

 

 

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

 

 

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1developer, who purchase a unit in a bona fide transaction for
2value.
3    "Record" means to record in the office of the recorder of
4the county wherein the property is located.
5    "Reserves" means those sums paid by members unit owners
6which are separately maintained by the common interest
7community association for purposes specified by the
8declaration and bylaws of the common interest community
9association.
10    "Unit" means a part of the property designed and intended
11for any type of independent use.
12    "Unit owner" means the person or persons whose estates or
13interests, individually or collectively, aggregate fee simple
14absolute ownership of a unit.
15(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
16    (765 ILCS 160/1-15)
17    Sec. 1-15. Construction, interpretation, and validity of
18community instruments.
19    (a) Except to the extent otherwise provided by the
20declaration or other community instruments, the terms defined
21in Section 1-5 of this Act shall be deemed to have the meaning
22specified therein unless the context otherwise requires.
23    (b) All provisions of the declaration, bylaws, and other
24community instruments severed by this Act shall be revised by
25the board of directors independent of the membership to comply

 

 

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1with this Act are severable.
2    (c) A provision in the declaration limiting ownership,
3rental, or occupancy of a unit to a person 55 years of age or
4older shall be valid and deemed not to be in violation of
5Article 3 of the Illinois Human Rights Act provided that the
6person or the immediate family of a person owning, renting, or
7lawfully occupying such unit prior to the recording of the
8initial declaration shall not be deemed to be in violation of
9such age restriction so long as they continue to own or reside
10in such unit.
11    (d) Every common interest community association shall
12define a member and its relationship to the units or unit
13owners in its community instruments.
14(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
15    (765 ILCS 160/1-20)
16    Sec. 1-20. Amendments to the declaration or bylaws.
17    (a) The administration of every property shall be governed
18by the declaration and bylaws, which may either be embodied in
19the declaration or in a separate instrument, a true copy of
20which shall be appended to and recorded with the declaration.
21No modification or amendment of the declaration or bylaws shall
22be valid unless the same is set forth in an amendment thereof
23and such amendment is duly recorded. An amendment of the
24declaration or bylaws shall be deemed effective upon
25recordation, unless the amendment sets forth a different

 

 

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1effective date.
2    (b) Unless otherwise provided by this Act, amendments to
3community instruments authorized to be recorded shall be
4executed and recorded by the president of the board or such
5other officer authorized by the common interest community
6association or the community instruments.
7    (c) If an association that currently permits leasing amends
8its declaration, bylaws, or rules and regulations to prohibit
9leasing, nothing in this Act or the declarations, bylaws, rules
10and regulations of an association shall prohibit a unit owner
11incorporated under 26 USC 501(c)(3) which is leasing a unit at
12the time of the prohibition from continuing to do so until such
13time that the unit owner voluntarily sells the unit; and no
14special fine, fee, dues, or penalty shall be assessed against
15the unit owner for leasing its unit.
16    (d) No action to incorporate a common interest community as
17a municipality shall commence until an instrument agreeing to
18incorporation has been signed by two-thirds of the members.
19(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
20    (765 ILCS 160/1-25)
21    Sec. 1-25. Board of managers, board of directors, duties,
22elections, and voting.
23    (a) Elections shall be held in accordance with the
24community instruments, provided that an election shall be held
25no less frequently than once every 24 months, for There shall

 

 

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1be an annual election of the board of managers or board of
2directors from among the membership of a common interest
3community association.
4    (b) (Blank).
5    (c) The members of the board shall serve without
6compensation, unless the community instruments indicate
7otherwise.
8    (d) No member of the board or officer shall be elected for
9a term of more than 4 3 years, but officers and board members
10may succeed themselves.
11    (e) If there is a vacancy on the board, the remaining
12members of the board may fill the vacancy by a two-thirds vote
13of the remaining board members until the next annual meeting of
14the membership or until members holding 20% of the votes of the
15association request a meeting of the members to fill the
16vacancy for the balance of the term. A meeting of the members
17shall be called for purposes of filling a vacancy on the board
18no later than 30 days following the filing of a petition signed
19by membership 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;
25        (2) secretary from among the members of the board, who
26    shall keep the minutes of all meetings of the board and of

 

 

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

 

 

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

 

 

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1elected to and serve on the board unless the seller expressly
2retains in writing any or all of such rights.
3(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
4    (765 ILCS 160/1-30)
5    Sec. 1-30. Board duties and obligations; records.
6    (a) The board shall meet at least 4 times annually.
7    (b) A member of the board of the common interest community
8association may not enter into a contract with a current board
9member, or with a corporation or partnership in which a board
10member or a member of his or her immediate family has 25% or
11more interest, unless notice of intent to enter into the
12contract is given to members unit owners within 20 days after a
13decision is made to enter into the contract and the members
14unit owners are afforded an opportunity by filing a petition,
15signed by 20% of the membership, for an election to approve or
16disapprove the contract; such petition shall be filed within 20
17days after such notice and such election shall be held within
1830 days after filing the petition. For purposes of this
19subsection, a board member's immediate family means the board
20member's spouse, parents, and children.
21    (c) The bylaws shall provide for the maintenance, repair,
22and replacement of the common areas and payments therefor,
23including the method of approving payment vouchers.
24    (d) (Blank).
25    (e) The association may engage the services of a manager or

 

 

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

 

 

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

 

 

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

 

 

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1    board of managers or the board of directors.
2    (j) The board shall have standing and capacity to act in a
3representative capacity in relation to matters involving the
4common areas or more than one unit, on behalf of the members or
5unit owners as their interests may appear.
6(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
7    (765 ILCS 160/1-35)
8    Sec. 1-35. Member Unit owner powers, duties, and
9obligations.
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, unless the unit owner owns
24another unit independently.
25    (c) Two-thirds of the membership may remove a board member

 

 

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1as a director at a duly called special meeting.
2    (d) In the event of any resale of a unit in a common
3interest community association by a member or unit owner other
4than the developer, the board shall make available for
5inspection to the prospective purchaser, upon demand, the
6following:
7        (1) A copy of the declaration, other instruments, and
8    any rules and regulations.
9        (2) A statement of any liens, including a statement of
10    the account of the unit setting forth the amounts of unpaid
11    assessments and other charges due and owing.
12        (3) A statement of any capital expenditures
13    anticipated by the association within the current or
14    succeeding 2 fiscal years.
15        (4) A statement of the status and amount of any reserve
16    or replacement fund and any other fund specifically
17    designated for association projects.
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 members or unit owners by the
25    association for common properties.
26    The principal officer of the board or such other officer as

 

 

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1is specifically designated shall furnish the above information
2within 30 days after receiving a written request for such
3information.
4    A reasonable fee covering the direct out-of-pocket cost of
5copying and providing such information may be charged by the
6association or the board to the unit seller for providing the
7information.
8(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
9    (765 ILCS 160/1-40)
10    Sec. 1-40. Meetings.
11    (a) Notice of any membership meeting shall be given
12detailing the time, place, and purpose of such meeting no less
13than 10 and no more than 30 days prior to the meeting through a
14prescribed delivery method.
15    (b) Meetings.
16        (1) Twenty percent of the membership shall constitute a
17    quorum, unless the community instruments indicate a lesser
18    amount.
19        (2) The membership shall hold an annual meeting. The
20    board of directors may be elected at the annual meeting.
21        (3) Special meetings of the board may be called by the
22    president, by 25% of the members of the board, or by any
23    other method that is prescribed in the community
24    instruments. Special meetings of the membership may be
25    called by the president, the board, 20% of the membership,

 

 

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

 

 

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1    contracts or information regarding appointment,
2    employment, or dismissal of an employee, or (iii) to
3    discuss violations of rules and regulations of the
4    association or a member's or unit owner's unpaid share of
5    common expenses. Any vote on these matters shall be taken
6    at a meeting or portion thereof open to any member unit
7    owner.
8        (6) The board must reserve a portion of the meeting of
9    the board for comments by members unit owners; provided,
10    however, the duration and meeting order for the member unit
11    owner comment period is within the sole discretion of the
12    board.
13(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
14    (765 ILCS 160/1-45)
15    Sec. 1-45. Finances.
16    (a) Each member unit owner shall receive through a
17prescribed delivery method, at least 30 days but not more than
1860 days prior to the adoption thereof by the board, a copy of
19the proposed annual budget together with an indication of which
20portions are intended for reserves, capital expenditures or
21repairs or payment of real estate taxes.
22    (b) The board shall provide all members unit owners with a
23reasonably detailed summary of the receipts, common expenses,
24and reserves for the preceding budget year. The board shall (i)
25make available for review to all members unit owners an

 

 

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1itemized accounting of the common expenses for the preceding
2year actually incurred or paid, together with an indication of
3which portions were for reserves, capital expenditures or
4repairs or payment of real estate taxes and with a tabulation
5of the amounts collected pursuant to the budget or assessment,
6and showing the net excess or deficit of income over
7expenditures plus reserves or (ii) provide a consolidated
8annual independent audit report of the financial status of all
9fund accounts within the association.
10    (c) If an adopted budget or any separate assessment adopted
11by the board would result in the sum of all regular and
12separate assessments payable in the current fiscal year
13exceeding 115% of the sum of all regular and separate
14assessments payable during the preceding fiscal year, the
15common interest community association, upon written petition
16by members unit owners with 20% of the votes of the association
17delivered to the board within 14 days of the board action,
18shall call a meeting of the members unit owners within 30 days
19of the date of delivery of the petition to consider the budget
20or separate assessment; unless a majority of the total votes of
21the members unit owners are cast at the meeting to reject the
22budget or separate assessment, it shall be deemed ratified.
23    (d) If total common expenses exceed the total amount of the
24approved and adopted budget, the common interest community
25association shall disclose this variance to all its members and
26specifically identify the subsequent assessments needed to

 

 

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

 

 

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1    (h) The board of a common interest community association
2shall have the authority to establish and maintain a system of
3master metering of public utility services to collect payments
4in conjunction therewith, subject to the requirements of the
5Tenant Utility Payment Disclosure Act.
6(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
7    (765 ILCS 160/1-50)
8    Sec. 1-50. Administration of property prior to election of
9the initial board of directors.
10    (a) Until the election of the initial board whose
11declaration is recorded on or after the effective date of this
12Act, the same rights, titles, powers, privileges, trusts,
13duties, and obligations that are vested in or imposed upon the
14board by this Act or in the declaration or other duly recorded
15covenant shall be held and performed by the developer.
16    (b) The election of the initial board, whose declaration is
17recorded on or after the effective date of this Act, shall be
18held not later than 60 days after the conveyance by the
19developer of 75% of the units, or 3 years after the recording
20of the declaration, whichever is earlier. The developer shall
21give at least 21 days' notice of the meeting to elect the
22initial board of directors and shall upon request provide to
23any member unit owner, within 3 working days of the request,
24the names, addresses, and weighted vote of each member unit
25owner entitled to vote at the meeting. Any member unit owner

 

 

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1shall, upon receipt of the request, be provided with the same
2information, within 10 days after the request, with respect to
3each subsequent meeting to elect members of the board of
4directors.
5    (c) If the initial board of a common interest community
6association whose declaration is recorded on or after the
7effective date of this Act is not elected by the time
8established in subsection (b), the developer shall continue in
9office for a period of 30 days, whereupon written notice of his
10or her resignation shall be sent to all of the unit owners or
11members.
12    (d) Within 60 days following the election of a majority of
13the board, other than the developer, by members unit owners,
14the developer shall deliver to the board:
15        (1) All original documents as recorded or filed
16    pertaining to the property, its administration, and the
17    association, such as the declaration, articles of
18    incorporation, other instruments, annual reports, minutes,
19    rules and regulations, and contracts, leases, or other
20    agreements entered into by the association. If any original
21    documents are unavailable, a copy may be provided if
22    certified by affidavit of the developer, or an officer or
23    agent of the developer, as being a complete copy of the
24    actual document recorded or filed.
25        (2) A detailed accounting by the developer, setting
26    forth the source and nature of receipts and expenditures in

 

 

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

 

 

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1    registered or certified mail to his or her last known
2    address, the board may bring an action to compel compliance
3    with this subsection (d). If the court finds that any of
4    the required deliveries were not made within the required
5    period, the board shall be entitled to recover its
6    reasonable attorney's fees and costs incurred from and
7    after the date of expiration of the 10-day demand.
8    (e) With respect to any common interest community
9association whose declaration is recorded on or after the
10effective date of this Act, any contract, lease, or other
11agreement made prior to the election of a majority of the board
12other than the developer by or on behalf of members unit owners
13or underlying common interest community association, the
14association or the board, which extends for a period of more
15than 2 years from the recording of the declaration, shall be
16subject to cancellation by more than one-half of the votes of
17the members unit owners, other than the developer, cast at a
18special meeting of members called for that purpose during a
19period of 90 days prior to the expiration of the 2-year period
20if the board is elected by the members unit owners, otherwise
21by more than one-half of the underlying common interest
22community association board. At least 60 days prior to the
23expiration of the 2-year period, the board or, if the board is
24still under developer control, the developer shall send notice
25to every member unit owner notifying them of this provision, of
26what contracts, leases, and other agreements are affected, and

 

 

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1of the procedure for calling a meeting of the members unit
2owners or for action by the board for the purpose of acting to
3terminate such contracts, leases or other agreements. During
4the 90-day period the other party to the contract, lease, or
5other agreement shall also have the right of cancellation.
6    (f) The statute of limitations for any actions in law or
7equity that the board may bring shall not begin to run until
8the members unit owners have elected a majority of the members
9of the board.
10(Source: P.A. 96-1400, eff. 7-29-10.)
 
11    (765 ILCS 160/1-60)
12    Sec. 1-60. Errors and omissions.
13    (a) If there is an omission or error in the declaration or
14other instrument of the association, the association may
15correct the error or omission by an amendment to the
16declaration or other instrument, as may be required to conform
17it to this Act, to any other applicable statute, or to the
18declaration. The amendment shall be adopted by vote of
19two-thirds of the members of the board of directors or by a
20majority vote of the members at a meeting called for that
21purpose, unless the Act or the declaration of the association
22specifically provides for greater percentages or different
23procedures.
24    (b) If, through a scrivener's error, a unit has not been
25designated as owning an appropriate undivided share of the

 

 

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1common areas or does not bear an appropriate share of the
2common expenses, or if all of the common expenses or all of the
3common elements have not been distributed in the declaration,
4so that the sum total of the shares of common areas which have
5been distributed or the sum total of the shares of the common
6expenses fail to equal 100%, or if it appears that more than
7100% of the common elements or common expenses have been
8distributed, the error may be corrected by operation of law by
9filing an amendment to the declaration, approved by vote of
10two-thirds of the members of the board or a majority vote of
11the members at a meeting called for that purpose, which
12proportionately adjusts all percentage interests so that the
13total is equal to 100%, unless the declaration specifically
14provides for a different procedure or different percentage vote
15by the owners of the units and the owners of mortgages thereon
16affected by modification being made in the undivided interest
17in the common areas, the number of votes in the association or
18the liability for common expenses appertaining to the unit.
19    (c) If a scrivener's error in the declaration or other
20instrument is corrected by vote of two-thirds of the members of
21the board pursuant to the authority established in subsection
22(a) or subsection (b), the board, upon written petition by
23members with 20% of the votes of the association received
24within 30 days of the board action, shall call a meeting of the
25members within 30 days of the filing of the petition to
26consider the board action. Unless a majority of the votes of

 

 

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1the members of the association are cast at the meeting to
2reject the action, it is ratified whether or not a quorum is
3present.
4    (d) Nothing contained in this Section shall be construed to
5invalidate any provision of a declaration authorizing the
6developer to amend an instrument prior to the latest date on
7which the initial membership meeting of the members unit owners
8must be held, whether or not it has actually been held, to
9bring the instrument into compliance with the legal
10requirements of the Federal National Mortgage Association, the
11Federal Home Loan Mortgage Corporation, the Federal Housing
12Administration, the United States Department of Veterans
13Affairs, or their respective successors and assigns.
14(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
15    (765 ILCS 160/1-75)
16    Sec. 1-75. Exemptions for small common community interest
17communities.
18    (a) A common interest community association organized
19under the General Not for Profit Corporation Act of 1986 and
20having either (i) 10 units or less or (ii) annual budgeted
21assessments of $100,000 or less shall be exempt from this Act
22unless the association affirmatively elects to be covered by
23this Act by a majority of its directors or members.
24    (b) Common interest community associations which in their
25declaration, bylaws, or other governing documents provide that

 

 

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1the association may not use the courts or an arbitration
2process to collect or enforce assessments, fines, or similar
3levies and common interest community associations (i) of 10
4units or less or (ii) having annual budgeted assessments of
5$50,000 or less shall be exempt from subsection (a) of Section
61-30, subsections (a) and (b) of Section 1-40, and Section 1-55
7but shall be required to provide notice of meetings to members
8unit owners in a manner and at a time that will allow members
9unit owners to participate in those meetings.
10(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.