Rep. Tom Cross

Filed: 5/17/2012

 

 


 

 


 
09700SB3572ham002LRB097 18505 JLS 69625 a

1
AMENDMENT TO SENATE BILL 3572

2    AMENDMENT NO. ______. Amend Senate Bill 3572, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Common Interest Community Association Act
6is amended by changing Sections 1-5, 1-15, 1-20, 1-25, 1-30,
71-35, 1-40, 1-45, 1-50, 1-60, and 1-75 as follows:
 
8    (765 ILCS 160/1-5)
9    Sec. 1-5. Definitions.
10    (a) As used in this Act, unless the context otherwise
11requires:
12    "Association" or "common interest community association"
13means the association of all the members unit owners of a
14common interest community, acting pursuant to bylaws through
15its duly elected board of managers or board of directors.
16    "Board" means a common interest community association's

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1appurtenances belonging thereto, and all fixtures and
2equipment intended for the mutual use, benefit, or enjoyment of
3the members unit owners, under the authority or control of a
4common interest community association.
5    "Purchaser" means any person or persons, other than the
6developer, who purchase a unit in a bona fide transaction for
7value.
8    "Record" means to record in the office of the recorder of
9the county wherein the property is located.
10    "Reserves" means those sums paid by members unit owners
11which are separately maintained by the common interest
12community association for purposes specified by the
13declaration and bylaws of the common interest community
14association.
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, subject to the provisions of
20subsection (b).
21    (b) The terms "member" and "unit owner" may be used
22interchangeably. In situations in which a matter of legal title
23to the unit is involved or at issue, the term "unit owner" is
24the applicable term. In a county with a population under
25500,000, if "member" or "unit owner" is defined differently by
26the community instruments, the definition in the community

 

 

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1instruments shall control.
2(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
3    (765 ILCS 160/1-15)
4    Sec. 1-15. Construction, interpretation, and validity of
5community instruments.
6    (a) Except to the extent otherwise provided by the
7declaration or other community instruments, the terms defined
8in Section 1-5 of this Act shall be deemed to have the meaning
9specified therein unless the context otherwise requires.
10    (b) All provisions of the declaration, bylaws, and other
11community instruments severed by this Act shall be revised by
12the board of directors independent of the membership to comply
13with this Act are severable.
14    (c) A provision in the declaration limiting ownership,
15rental, or occupancy of a unit to a person 55 years of age or
16older shall be valid and deemed not to be in violation of
17Article 3 of the Illinois Human Rights Act provided that the
18person or the immediate family of a person owning, renting, or
19lawfully occupying such unit prior to the recording of the
20initial declaration shall not be deemed to be in violation of
21such age restriction so long as they continue to own or reside
22in such unit.
23    (d) Every common interest community association shall
24define a member and its relationship to the units or unit
25owners in its community instruments.

 

 

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1(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
2    (765 ILCS 160/1-20)
3    Sec. 1-20. Amendments to the declaration or bylaws.
4    (a) The administration of every property shall be governed
5by the declaration and bylaws, which may either be embodied in
6the declaration or in a separate instrument, a true copy of
7which shall be appended to and recorded with the declaration.
8No modification or amendment of the declaration or bylaws shall
9be valid unless the same is set forth in an amendment thereof
10and such amendment is duly recorded. An amendment of the
11declaration or bylaws shall be deemed effective upon
12recordation, unless the amendment sets forth a different
13effective date.
14    (b) Unless otherwise provided by this Act, amendments to
15community instruments authorized to be recorded shall be
16executed and recorded by the president of the board or such
17other officer authorized by the common interest community
18association or the community instruments.
19    (c) If an association that currently permits leasing amends
20its declaration, bylaws, or rules and regulations to prohibit
21leasing, nothing in this Act or the declarations, bylaws, rules
22and regulations of an association shall prohibit a unit owner
23incorporated under 26 USC 501(c)(3) which is leasing a unit at
24the time of the prohibition from continuing to do so until such
25time that the unit owner voluntarily sells the unit; and no

 

 

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1special fine, fee, dues, or penalty shall be assessed against
2the unit owner for leasing its unit.
3    (d) No action to incorporate a common interest community as
4a municipality shall commence until an instrument agreeing to
5incorporation has been signed by two-thirds of the members.
6(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
7    (765 ILCS 160/1-25)
8    Sec. 1-25. Board of managers, board of directors, duties,
9elections, and voting.
10    (a) Elections shall be held in accordance with the
11community instruments, provided that an election shall be held
12no less frequently than once every 24 months, for There shall
13be an annual election of the board of managers or board of
14directors from among the membership of a common interest
15community association.
16    (b) (Blank).
17    (c) The members of the board shall serve without
18compensation, unless the community instruments indicate
19otherwise.
20    (d) No member of the board or officer shall be elected for
21a term of more than 4 3 years, but officers and board members
22may succeed themselves.
23    (e) If there is a vacancy on the board, the remaining
24members of the board may fill the vacancy by a two-thirds vote
25of the remaining board members until the next annual meeting of

 

 

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1the membership or until members holding 20% of the votes of the
2association request a meeting of the members to fill the
3vacancy for the balance of the term. A meeting of the members
4shall be called for purposes of filling a vacancy on the board
5no later than 30 days following the filing of a petition signed
6by membership holding 20% of the votes of the association
7requesting such a meeting.
8    (f) There shall be an election of a:
9        (1) president from among the members of the board, who
10    shall preside over the meetings of the board and of the
11    membership;
12        (2) secretary from among the members of the board, who
13    shall keep the minutes of all meetings of the board and of
14    the membership and who shall, in general, perform all the
15    duties incident to the office of secretary; and
16        (3) treasurer from among the members of the board, who
17    shall keep the financial records and books of account.
18    (g) If no election is held to elect board members within
19the time period specified in the bylaws, or within a reasonable
20amount of time thereafter not to exceed 90 days, then 20% of
21the members may bring an action to compel compliance with the
22election requirements specified in the bylaws. If the court
23finds that an election was not held to elect members of the
24board within the required period due to the bad faith acts or
25omissions of the board of managers or the board of directors,
26the members unit owners shall be entitled to recover their

 

 

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1reasonable attorney's fees and costs from the association. If
2the relevant notice requirements have been met and an election
3is not held solely due to a lack of a quorum, then this
4subsection (g) does not apply.
5    (h) Where there is more than one owner of a unit and there
6is only one member vote associated with that unit, if only one
7of the multiple owners is present at a meeting of the
8membership, he or she is entitled to cast the member vote
9associated with that unit.
10    (h-5) A member may vote:
11        (1) by proxy executed in writing by the member or by
12    his or her duly authorized attorney in fact, provided,
13    however, that the proxy bears the date of execution. Unless
14    the community instruments or the written proxy itself
15    provide otherwise, proxies will not be valid for more than
16    11 months after the date of its execution; or
17        (2) by submitting an association-issued ballot in
18    person at the election meeting; or
19        (3) by submitting an association-issued ballot to the
20    association or its designated agent by mail or other means
21    of delivery specified in the declaration or bylaws.
22    (i) The association may, upon adoption of the appropriate
23rules by the board, conduct elections by secret ballot,
24distributed by the association, whereby the voting ballot is
25marked only with the voting interest for the member and the
26vote itself, provided that the association shall further adopt

 

 

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1rules to verify the status of the member issuing a proxy or
2casting a ballot and provided further that proxies shall not be
3allowed. A candidate for election to the board or such
4candidate's representative shall have the right to be present
5at the counting of ballots at such election.
6    (j) Upon proof of purchase, the purchaser of a unit from a
7seller other than the developer pursuant to an installment
8contract for purchase shall, during such times as he or she
9resides in the unit, be counted toward a quorum for purposes of
10election of members of the board at any meeting of the
11membership called for purposes of electing members of the
12board, shall have the right to vote for the members of the
13board of the common interest community association and to be
14elected to and serve on the board unless the seller expressly
15retains in writing any or all of such rights.
16(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
17    (765 ILCS 160/1-30)
18    Sec. 1-30. Board duties and obligations; records.
19    (a) The board shall meet at least 4 times annually.
20    (b) A member of the board of the common interest community
21association may not enter into a contract with a current board
22member, or with a corporation or partnership in which a board
23member or a member of his or her immediate family has 25% or
24more interest, unless notice of intent to enter into the
25contract is given to members unit owners within 20 days after a

 

 

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1decision is made to enter into the contract and the members
2unit owners are afforded an opportunity by filing a petition,
3signed by 20% of the membership, for an election to approve or
4disapprove the contract; such petition shall be filed within 20
5days after such notice and such election shall be held within
630 days after filing the petition. For purposes of this
7subsection, a board member's immediate family means the board
8member's spouse, parents, and children.
9    (c) The bylaws shall provide for the maintenance, repair,
10and replacement of the common areas and payments therefor,
11including the method of approving payment vouchers.
12    (d) (Blank).
13    (e) The association may engage the services of a manager or
14management company.
15    (f) The association shall have one class of membership
16unless the declaration or bylaws provide otherwise; however,
17this subsection (f) shall not be construed to limit the
18operation of subsection (c) of Section 1-20 of this Act.
19    (g) The board shall have the power, after notice and an
20opportunity to be heard, to levy and collect reasonable fines
21from members or unit owners for violations of the declaration,
22bylaws, and rules and regulations of the common interest
23community association.
24    (h) Other than attorney's fees and court or arbitration
25costs, no fees pertaining to the collection of a member's or
26unit owner's financial obligation to the association,

 

 

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1including fees charged by a manager or managing agent, shall be
2added to and deemed a part of a member's or unit owner's
3respective share of the common expenses unless: (i) the
4managing agent fees relate to the costs to collect common
5expenses for the association; (ii) the fees are set forth in a
6contract between the managing agent and the association; and
7(iii) the authority to add the management fees to a member's or
8unit owner's respective share of the common expenses is
9specifically stated in the declaration or bylaws of the
10association.
11    (i) Board records.
12        (1) The board shall maintain the following records of
13    the association and make them available for examination and
14    copying at convenient hours of weekdays by any member or
15    unit owner in a common interest community subject to the
16    authority of the board, their mortgagees, and their duly
17    authorized agents or attorneys:
18            (i) Copies of the recorded declaration, other
19        community instruments, other duly recorded covenants
20        and bylaws and any amendments, articles of
21        incorporation, annual reports, and any rules and
22        regulations adopted by the board shall be available.
23        Prior to the organization of the board, the developer
24        shall maintain and make available the records set forth
25        in this paragraph (i) for examination and copying.
26            (ii) Detailed and accurate records in

 

 

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1        chronological order of the receipts and expenditures
2        affecting the common areas, specifying and itemizing
3        the maintenance and repair expenses of the common areas
4        and any other expenses incurred, and copies of all
5        contracts, leases, or other agreements entered into by
6        the board shall be maintained.
7            (iii) The minutes of all meetings of the board
8        which shall be maintained for not less than 7 years.
9            (iv) With a written statement of a proper purpose,
10        ballots and proxies related thereto, if any, for any
11        election held for the board and for any other matters
12        voted on by the members unit owners, which shall be
13        maintained for not less than one year.
14            (v) With a written statement of a proper purpose,
15        such other records of the board as are available for
16        inspection by members of a not-for-profit corporation
17        pursuant to Section 107.75 of the General Not For
18        Profit Corporation Act of 1986 shall be maintained.
19            (vi) With respect to units owned by a land trust, a
20        living trust, or other legal entity, the trustee,
21        officer, or manager of the entity may designate, in
22        writing, a person to cast votes on behalf of the member
23        or unit owner and a designation shall remain in effect
24        until a subsequent document is filed with the
25        association.
26        (2) Where a request for records under this subsection

 

 

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1    is made in writing to the board or its agent, failure to
2    provide the requested record or to respond within 30 days
3    shall be deemed a denial by the board.
4        (3) A reasonable fee may be charged by the board for
5    the cost of retrieving and copying records properly
6    requested.
7        (4) If the board fails to provide records properly
8    requested under paragraph (1) of this subsection (i) within
9    the time period provided in that paragraph (1), the member
10    unit owner may seek appropriate relief and shall be
11    entitled to an award of reasonable attorney's fees and
12    costs if the member unit owner prevails and the court finds
13    that such failure is due to the acts or omissions of the
14    board of managers or the board of directors.
15    (j) The board shall have standing and capacity to act in a
16representative capacity in relation to matters involving the
17common areas or more than one unit, on behalf of the members or
18unit owners as their interests may appear.
19(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
20    (765 ILCS 160/1-35)
21    Sec. 1-35. Member Unit owner powers, duties, and
22obligations.
23    (a) The provisions of this Act, the declaration, bylaws,
24other community instruments, and rules and regulations that
25relate to the use of an individual unit or the common areas

 

 

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1shall be applicable to any person leasing a unit and shall be
2deemed to be incorporated in any lease executed or renewed on
3or after the effective date of this Act. With regard to any
4lease entered into subsequent to the effective date of this
5Act, the member or unit owner leasing the unit shall deliver a
6copy of the signed lease to the association or if the lease is
7oral, a memorandum of the lease, not later than the date of
8occupancy or 10 days after the lease is signed, whichever
9occurs first.
10    (b) If there are multiple owners of a single unit, only one
11of the multiple owners shall be eligible to serve as a member
12of the board at any one time, unless the unit owner owns
13another unit independently.
14    (c) Two-thirds of the membership may remove a board member
15as a director at a duly called special meeting.
16    (d) In the event of any resale of a unit in a common
17interest community association by a member or unit owner other
18than the developer, the board shall make available for
19inspection to the prospective purchaser, upon demand, the
20following:
21        (1) A copy of the declaration, other instruments, and
22    any rules and regulations.
23        (2) A statement of any liens, including a statement of
24    the account of the unit setting forth the amounts of unpaid
25    assessments and other charges due and owing.
26        (3) A statement of any capital expenditures

 

 

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1    anticipated by the association within the current or
2    succeeding 2 fiscal years.
3        (4) A statement of the status and amount of any reserve
4    or replacement fund and any other fund specifically
5    designated for association projects.
6        (5) A copy of the statement of financial condition of
7    the association for the last fiscal year for which such a
8    statement is available.
9        (6) A statement of the status of any pending suits or
10    judgments in which the association is a party.
11        (7) A statement setting forth what insurance coverage
12    is provided for all members or unit owners by the
13    association for common properties.
14    The principal officer of the board or such other officer as
15is specifically designated shall furnish the above information
16within 30 days after receiving a written request for such
17information.
18    A reasonable fee covering the direct out-of-pocket cost of
19copying and providing such information may be charged by the
20association or the board to the unit seller for providing the
21information.
22(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
23    (765 ILCS 160/1-40)
24    Sec. 1-40. Meetings.
25    (a) Notice of any membership meeting shall be given

 

 

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1detailing the time, place, and purpose of such meeting no less
2than 10 and no more than 30 days prior to the meeting through a
3prescribed delivery method.
4    (b) Meetings.
5        (1) Twenty percent of the membership shall constitute a
6    quorum, unless the community instruments indicate a lesser
7    amount.
8        (2) The membership shall hold an annual meeting. The
9    board of directors may be elected at the annual meeting.
10        (3) Special meetings of the board may be called by the
11    president, by 25% of the members of the board, or by any
12    other method that is prescribed in the community
13    instruments. Special meetings of the membership may be
14    called by the president, the board, 20% of the membership,
15    or any other method that is prescribed in the community
16    instruments.
17        (4) Except to the extent otherwise provided by this
18    Act, the board shall give the members unit owners notice of
19    all board meetings at least 48 hours prior to the meeting
20    by sending notice by using a prescribed delivery method or
21    by posting copies of notices of meetings in entranceways,
22    elevators, or other conspicuous places in the common areas
23    of the common interest community at least 48 hours prior to
24    the meeting except where there is no common entranceway for
25    7 or more units, the board may designate one or more
26    locations in the proximity of these units where the notices

 

 

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1    of meetings shall be posted. The board shall give members
2    unit owners notice of any board meeting, through a
3    prescribed delivery method, concerning the adoption of (i)
4    the proposed annual budget, (ii) regular assessments, or
5    (iii) a separate or special assessment within 10 to 60 days
6    prior to the meeting, unless otherwise provided in Section
7    1-45 (a) or any other provision of this Act.
8        (5) Meetings of the board shall be open to any unit
9    owner, except for the portion of any meeting held (i) to
10    discuss litigation when an action against or on behalf of
11    the particular association has been filed and is pending in
12    a court or administrative tribunal, or when the common
13    interest community association finds that such an action is
14    probable or imminent, (ii) to consider third party
15    contracts or information regarding appointment,
16    employment, or dismissal of an employee, or (iii) to
17    discuss violations of rules and regulations of the
18    association or a member's or unit owner's unpaid share of
19    common expenses. Any vote on these matters shall be taken
20    at a meeting or portion thereof open to any member unit
21    owner.
22        (6) The board must reserve a portion of the meeting of
23    the board for comments by members unit owners; provided,
24    however, the duration and meeting order for the member unit
25    owner comment period is within the sole discretion of the
26    board.

 

 

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1(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
2    (765 ILCS 160/1-45)
3    Sec. 1-45. Finances.
4    (a) Each member unit owner shall receive through a
5prescribed delivery method, at least 30 days but not more than
660 days prior to the adoption thereof by the board, a copy of
7the proposed annual budget together with an indication of which
8portions are intended for reserves, capital expenditures or
9repairs or payment of real estate taxes.
10    (b) The board shall provide all members unit owners with a
11reasonably detailed summary of the receipts, common expenses,
12and reserves for the preceding budget year. The board shall (i)
13make available for review to all members unit owners an
14itemized accounting of the common expenses for the preceding
15year actually incurred or paid, together with an indication of
16which portions were for reserves, capital expenditures or
17repairs or payment of real estate taxes and with a tabulation
18of the amounts collected pursuant to the budget or assessment,
19and showing the net excess or deficit of income over
20expenditures plus reserves or (ii) provide a consolidated
21annual independent audit report of the financial status of all
22fund accounts within the association.
23    (c) If an adopted budget or any separate assessment adopted
24by the board would result in the sum of all regular and
25separate assessments payable in the current fiscal year

 

 

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1exceeding 115% of the sum of all regular and separate
2assessments payable during the preceding fiscal year, the
3common interest community association, upon written petition
4by members unit owners with 20% of the votes of the association
5delivered to the board within 14 days of the board action,
6shall call a meeting of the members unit owners within 30 days
7of the date of delivery of the petition to consider the budget
8or separate assessment; unless a majority of the total votes of
9the members unit owners are cast at the meeting to reject the
10budget or separate assessment, it shall be deemed ratified.
11    (d) If total common expenses exceed the total amount of the
12approved and adopted budget, the common interest community
13association shall disclose this variance to all its members and
14specifically identify the subsequent assessments needed to
15offset this variance in future budgets. Any common expense not
16set forth in the budget or any increase in assessments over the
17amount adopted in the budget shall be separately assessed
18against all unit owners.
19    (e) Separate assessments for expenditures relating to
20emergencies or mandated by law may be adopted by the board
21without being subject to member unit owner approval or the
22provisions of subsection (c) or (f) of this Section. As used
23herein, "emergency" means a danger to or a compromise of the
24structural integrity of the common areas or any of the common
25facilities of the common interest community. "Emergency" also
26includes a danger to the life, health, or safety of the

 

 

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1membership an immediate danger to the structural integrity of
2the common areas or to the life, health, safety, or property of
3the unit owners.
4    (f) Assessments for additions and alterations to the common
5areas or to association-owned property not included in the
6adopted annual budget, shall be separately assessed and are
7subject to approval of a simple majority two-thirds of the
8total members at a meeting called for that purpose.
9    (g) The board may adopt separate assessments payable over
10more than one fiscal year. With respect to multi-year
11assessments not governed by subsections (e) and (f) of this
12Section, the entire amount of the multi-year assessment shall
13be deemed considered and authorized in the first fiscal year in
14which the assessment is approved.
15    (h) The board of a common interest community association
16shall have the authority to establish and maintain a system of
17master metering of public utility services to collect payments
18in conjunction therewith, subject to the requirements of the
19Tenant Utility Payment Disclosure Act.
20(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
21    (765 ILCS 160/1-50)
22    Sec. 1-50. Administration of property prior to election of
23the initial board of directors.
24    (a) Until the election of the initial board whose
25declaration is recorded on or after the effective date of this

 

 

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1Act, the same rights, titles, powers, privileges, trusts,
2duties, and obligations that are vested in or imposed upon the
3board by this Act or in the declaration or other duly recorded
4covenant shall be held and performed by the developer.
5    (b) The election of the initial board, whose declaration is
6recorded on or after the effective date of this Act, shall be
7held not later than 60 days after the conveyance by the
8developer of 75% of the units, or 3 years after the recording
9of the declaration, whichever is earlier. The developer shall
10give at least 21 days' notice of the meeting to elect the
11initial board of directors and shall upon request provide to
12any member unit owner, within 3 working days of the request,
13the names, addresses, and weighted vote of each member unit
14owner entitled to vote at the meeting. Any member unit owner
15shall, upon receipt of the request, be provided with the same
16information, within 10 days after the request, with respect to
17each subsequent meeting to elect members of the board of
18directors.
19    (c) If the initial board of a common interest community
20association whose declaration is recorded on or after the
21effective date of this Act is not elected by the time
22established in subsection (b), the developer shall continue in
23office for a period of 30 days, whereupon written notice of his
24or her resignation shall be sent to all of the unit owners or
25members.
26    (d) Within 60 days following the election of a majority of

 

 

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1the board, other than the developer, by members unit owners,
2the developer shall deliver to the board:
3        (1) All original documents as recorded or filed
4    pertaining to the property, its administration, and the
5    association, such as the declaration, articles of
6    incorporation, other instruments, annual reports, minutes,
7    rules and regulations, and contracts, leases, or other
8    agreements entered into by the association. If any original
9    documents are unavailable, a copy may be provided if
10    certified by affidavit of the developer, or an officer or
11    agent of the developer, as being a complete copy of the
12    actual document recorded or filed.
13        (2) A detailed accounting by the developer, setting
14    forth the source and nature of receipts and expenditures in
15    connection with the management, maintenance, and operation
16    of the property, copies of all insurance policies, and a
17    list of any loans or advances to the association which are
18    outstanding.
19        (3) Association funds, which shall have been at all
20    times segregated from any other moneys of the developer.
21        (4) A schedule of all real or personal property,
22    equipment, and fixtures belonging to the association,
23    including documents transferring the property, warranties,
24    if any, for all real and personal property and equipment,
25    deeds, title insurance policies, and all tax bills.
26        (5) A list of all litigation, administrative action,

 

 

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1    and arbitrations involving the association, any notices of
2    governmental bodies involving actions taken or which may be
3    taken concerning the association, engineering and
4    architectural drawings and specifications as approved by
5    any governmental authority, all other documents filed with
6    any other governmental authority, all governmental
7    certificates, correspondence involving enforcement of any
8    association requirements, copies of any documents relating
9    to disputes involving members or unit owners, and originals
10    of all documents relating to everything listed in this
11    paragraph.
12        (6) If the developer fails to fully comply with this
13    subsection (d) within the 60 days provided and fails to
14    fully comply within 10 days after written demand mailed by
15    registered or certified mail to his or her last known
16    address, the board may bring an action to compel compliance
17    with this subsection (d). If the court finds that any of
18    the required deliveries were not made within the required
19    period, the board shall be entitled to recover its
20    reasonable attorney's fees and costs incurred from and
21    after the date of expiration of the 10-day demand.
22    (e) With respect to any common interest community
23association whose declaration is recorded on or after the
24effective date of this Act, any contract, lease, or other
25agreement made prior to the election of a majority of the board
26other than the developer by or on behalf of members unit owners

 

 

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1or underlying common interest community association, the
2association or the board, which extends for a period of more
3than 2 years from the recording of the declaration, shall be
4subject to cancellation by more than one-half of the votes of
5the members unit owners, other than the developer, cast at a
6special meeting of members called for that purpose during a
7period of 90 days prior to the expiration of the 2-year period
8if the board is elected by the members unit owners, otherwise
9by more than one-half of the underlying common interest
10community association board. At least 60 days prior to the
11expiration of the 2-year period, the board or, if the board is
12still under developer control, the developer shall send notice
13to every member unit owner notifying them of this provision, of
14what contracts, leases, and other agreements are affected, and
15of the procedure for calling a meeting of the members unit
16owners or for action by the board for the purpose of acting to
17terminate such contracts, leases or other agreements. During
18the 90-day period the other party to the contract, lease, or
19other agreement shall also have the right of cancellation.
20    (f) The statute of limitations for any actions in law or
21equity that the board may bring shall not begin to run until
22the members unit owners have elected a majority of the members
23of the board.
24(Source: P.A. 96-1400, eff. 7-29-10.)
 
25    (765 ILCS 160/1-60)

 

 

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1    Sec. 1-60. Errors and omissions.
2    (a) If there is an omission or error in the declaration or
3other instrument of the association, the association may
4correct the error or omission by an amendment to the
5declaration or other instrument, as may be required to conform
6it to this Act, to any other applicable statute, or to the
7declaration. The amendment shall be adopted by vote of
8two-thirds of the members of the board of directors or by a
9majority vote of the members at a meeting called for that
10purpose, unless the Act or the declaration of the association
11specifically provides for greater percentages or different
12procedures.
13    (b) If, through a scrivener's error, a unit has not been
14designated as owning an appropriate undivided share of the
15common areas or does not bear an appropriate share of the
16common expenses, or if all of the common expenses or all of the
17common elements have not been distributed in the declaration,
18so that the sum total of the shares of common areas which have
19been distributed or the sum total of the shares of the common
20expenses fail to equal 100%, or if it appears that more than
21100% of the common elements or common expenses have been
22distributed, the error may be corrected by operation of law by
23filing an amendment to the declaration, approved by vote of
24two-thirds of the members of the board or a majority vote of
25the members at a meeting called for that purpose, which
26proportionately adjusts all percentage interests so that the

 

 

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1total is equal to 100%, unless the declaration specifically
2provides for a different procedure or different percentage vote
3by the owners of the units and the owners of mortgages thereon
4affected by modification being made in the undivided interest
5in the common areas, the number of votes in the association or
6the liability for common expenses appertaining to the unit.
7    (c) If a scrivener's error in the declaration or other
8instrument is corrected by vote of two-thirds of the members of
9the board pursuant to the authority established in subsection
10(a) or subsection (b), the board, upon written petition by
11members with 20% of the votes of the association received
12within 30 days of the board action, shall call a meeting of the
13members within 30 days of the filing of the petition to
14consider the board action. Unless a majority of the votes of
15the members of the association are cast at the meeting to
16reject the action, it is ratified whether or not a quorum is
17present.
18    (d) Nothing contained in this Section shall be construed to
19invalidate any provision of a declaration authorizing the
20developer to amend an instrument prior to the latest date on
21which the initial membership meeting of the members unit owners
22must be held, whether or not it has actually been held, to
23bring the instrument into compliance with the legal
24requirements of the Federal National Mortgage Association, the
25Federal Home Loan Mortgage Corporation, the Federal Housing
26Administration, the United States Department of Veterans

 

 

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1Affairs, or their respective successors and assigns.
2(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
3    (765 ILCS 160/1-75)
4    Sec. 1-75. Exemptions for small common community interest
5communities.
6    (a) A common interest community association organized
7under the General Not for Profit Corporation Act of 1986 and
8having either (i) 10 units or less or (ii) annual budgeted
9assessments of $100,000 or less shall be exempt from this Act
10unless the association affirmatively elects to be covered by
11this Act by a majority of its directors or members.
12    (b) Common interest community associations which in their
13declaration, bylaws, or other governing documents provide that
14the association may not use the courts or an arbitration
15process to collect or enforce assessments, fines, or similar
16levies and common interest community associations (i) of 10
17units or less or (ii) having annual budgeted assessments of
18$50,000 or less shall be exempt from subsection (a) of Section
191-30, subsections (a) and (b) of Section 1-40, and Section 1-55
20but shall be required to provide notice of meetings to members
21unit owners in a manner and at a time that will allow members
22unit owners to participate in those meetings.
23(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
 
24    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.".