98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB1464

 

Introduced , by Rep. Elaine Nekritz

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 605/18.7

    Amends the Condominium Property Act. Makes a technical change in a Section concerning standards for community association managers.


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A BILL FOR

 

HB1464LRB098 08373 HEP 38478 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 Condominium Property Act is amended by
5changing Section 18.7 as follows:
 
6    (765 ILCS 605/18.7)
7    Sec. 18.7. Standards for community association managers.
8    (a) "Community association" means an an association in
9which membership is a condition of ownership or shareholder
10interest of a unit in a condominium, cooperative, townhouse,
11villa, or other residential unit that is part of a residential
12development plan as a master association or common interest
13community and that is authorized to impose an assessment and
14other costs that may become a lien on the unit or lot.
15    (b) "Community association manager" means an individual
16who administers for compensation the coordination of
17financial, administrative, maintenance, or other duties called
18for in the management contract, including individuals who are
19direct employees of a community association. A manager does not
20include support staff, such as bookkeepers, administrative
21assistants, secretaries, property inspectors, or customer
22service representatives.
23    (c) Requirements. To perform services as a community

 

 

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1association manager, an individual must meet these
2requirements:
3        (1) shall have attained the age of 21 and be a citizen
4    or legal permanent resident of the United States;
5        (2) shall not have been convicted of forgery,
6    embezzlement, obtaining money under false pretenses,
7    larceny, extortion, conspiracy to defraud or other similar
8    offense or offenses;
9        (3) shall have a working knowledge of the fundamentals
10    of community association management, including the
11    Condominium Property Act, the Illinois Not-for-Profit
12    Corporation Act, and any other laws pertaining to community
13    association management; and
14        (4) shall not have engaged in the following activities:
15    failure to cooperate with any law enforcement agency in the
16    investigation of a complaint; or failure to produce any
17    document, book, or record in the possession or control of
18    the community association manager after a request for
19    production of that document, book, or record in the course
20    of an investigation of a complaint.
21    (d) Access to community association funds. For community
22associations of 6 or more units, apartments, townhomes, villas
23or other residential units, a community association manager or
24the firm with whom the manager is employed shall not solely and
25exclusively have access to and disburse funds of a community
26association unless:

 

 

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1        (1) There is a fidelity bond in place.
2        (2) The fidelity bond is in an amount not less than all
3    monies of that association in the custody or control of the
4    community association manager.
5        (3) The fidelity bond covers the community association
6    manager and all partners, officers, and employees of the
7    firm with whom the community association manager is
8    employed during the term of the bond, as well as the
9    community association officers, directors, and employees
10    of the community association who control or disburse funds.
11        (4) The insurance company issuing the bond may not
12    cancel or refuse to renew the bond without giving not less
13    than 10 days' prior written notice to the community
14    association.
15        (5) The community association shall secure and pay for
16    the bond.
17    (e) A community association manager who provides community
18association management services for more than one community
19association shall maintain separate, segregated accounts for
20each community association. The funds shall not, in any event,
21be commingled with funds of the community association manager,
22the firm of the community association manager, or any other
23community association. The maintenance of these accounts shall
24be custodial, and the accounts shall be in the name of the
25respective community association.
26    (f) Exempt persons. Except as otherwise provided, this

 

 

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1Section does not apply to any person acting as a receiver,
2trustee in bankruptcy, administrator, executor, or guardian
3acting under a court order or under the authority of a will or
4of a trust instrument.
5    (g) Right of Action.
6        (1) Nothing in this amendatory Act of the 95th General
7    Assembly shall create a cause of action by a unit owner,
8    shareholder, or community association member against a
9    community association manager or the firm of a community
10    association manager.
11        (2) This amendatory Act of the 95th General Assembly
12    shall not impair any right of action by a unit owner or
13    shareholder against a community association board of
14    directors under existing law.
15(Source: P.A. 95-318, eff. 1-1-08.)