SB3407 97TH GENERAL ASSEMBLY

LRB097 19912 AJO 65202 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3407

Introduced 2/7/2012, by Sen. Ira I. Silverstein

SYNOPSIS AS INTRODUCED:

765 ILCS 605/19.1 new

Amends the Condominium Property Act. Provides that notwithstanding any provision in any condominium instrument or bylaw, a condominium association must not: impair or restrict a condominium unit owner from securing a reverse mortgage, so long as the reverse mortgage does not adversely affect the rights of an association to collect an assessment; prevent, impair, or restrict a unit owner from borrowing money on the unit by refusing to cooperate with a lender or any federal program; or levy a fee to process or to close on a reverse mortgage or other similar financing transaction.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Condominium Property Act is amended by adding Section 19.1 as follows:

(765 ILCS 605/19.1 new)

Sec. 19.1. Reverse mortgage availability.

(a) Notwithstanding any provision in the declaration, bylaws, rules, regulations, agreements, or other instruments of a condominium association, or any construction of any of those instruments by an association or by an association's board, an association must not:

(1) impair or restrict the rights of an owner to secure a reverse mortgage or other similar financing, so long as on its face the reverse mortgage or similar financing does not adversely affect the rights of an association to collect an assessment;

(2) prevent, impair, or restrict a unit owner from borrowing money on the unit owner's condominium unit by refusing to: (i) cooperate with a lender; (ii) comply with a lender's regulations, procedures, or requirements; (iii) cooperate with any federal program; or (iv) comply with any federal program's procedures or regulations that concern loans, the guarantee of loans, or refinancing; or

(3) refuse to allow the examination or copying of documents concerning an association's budget, financial statement, or tax identification number.

(b) Fees must not be levied by an association concerning paperwork necessary to process or to close on a reverse mortgage or other similar financing transaction.

(c) As used in this Section, "reverse mortgage" has the meaning ascribed to that term in Section 6.1 of the Illinois Banking Act.