Illinois General Assembly - Full Text of SB3572
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Full Text of SB3572  97th General Assembly


Sen. William R. Haine

Filed: 3/23/2012





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2    AMENDMENT NO. ______. Amend Senate Bill 3572 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Common Interest Community Association Act
5is amended by changing Sections 1-5, 1-15, 1-20, 1-25, 1-30,
61-35, 1-40, 1-45, 1-50, 1-60, 1-70, and 1-75 as follows:
7    (765 ILCS 160/1-5)
8    Sec. 1-5. Definitions. As used in this Act, unless the
9context otherwise requires:
10    "Association" or "common interest community association"
11means the association of all the members unit owners of a
12common interest community, acting pursuant to bylaws through
13its duly elected board of managers or board of directors.
14    "Board" means a common interest community association's
15board of managers or board of directors, whichever is



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



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



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



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



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



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



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



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1    (a) Routine scheduled elections shall be held in accordance
2with the community instruments for There shall be an annual
3election of the board of managers or board of directors from
4among the membership of a common interest community
6    (b) (Blank).
7    (c) The members of the board shall serve without
8compensation, unless the community instruments indicate
10    (d) No member of the board or officer shall be elected for
11a term of more than 4 3 years, but officers and board members
12may succeed themselves.
13    (e) If there is a vacancy on the board, the remaining
14members of the board may fill the vacancy by a two-thirds vote
15of the remaining board members until the next annual meeting of
16the membership or until members holding 20% of the votes of the
17association request a meeting of the members to fill the
18vacancy for the balance of the term. A meeting of the members
19shall be called for purposes of filling a vacancy on the board
20no later than 30 days following the filing of a petition signed
21by membership holding 20% of the votes of the association
22requesting such a meeting.
23    (f) There shall be an election of a:
24        (1) president from among the members of the board, who
25    shall preside over the meetings of the board and of the
26    membership;



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



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



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1board of the common interest community association and to be
2elected to and serve on the board unless the seller expressly
3retains in writing any or all of such rights.
4(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
5    (765 ILCS 160/1-30)
6    Sec. 1-30. Board duties and obligations; records.
7    (a) The board shall meet at least 4 times annually.
8    (b) A member of the board of the common interest community
9association may not enter into a contract with a current board
10member, or with a corporation or partnership in which a board
11member or a member of his or her immediate family has 25% or
12more interest, unless notice of intent to enter into the
13contract is given to members unit owners within 20 days after a
14decision is made to enter into the contract and the members
15unit owners are afforded an opportunity by filing a petition,
16signed by 20% of the membership, for an election to approve or
17disapprove the contract; such petition shall be filed within 20
18days after such notice and such election shall be held within
1930 days after filing the petition. For purposes of this
20subsection, a board member's immediate family means the board
21member's spouse, parents, and children.
22    (c) The bylaws shall provide for the maintenance, repair,
23and replacement of the common areas and payments therefor,
24including the method of approving payment vouchers.
25    (d) (Blank).



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1    (e) The association may engage the services of a manager or
2management company.
3    (f) The association shall have one class of membership
4unless the declaration or bylaws provide otherwise; however,
5this subsection (f) shall not be construed to limit the
6operation of subsection (c) of Section 1-20 of this Act.
7    (g) The board shall have the power, after notice and an
8opportunity to be heard, to levy and collect reasonable fines
9from members unit owners for violations of the declaration,
10bylaws, and rules and regulations of the common interest
11community association.
12    (h) Other than attorney's fees and court or arbitration
13costs, no fees pertaining to the collection of a member's unit
14owner's financial obligation to the association, including
15fees charged by a manager or managing agent, shall be added to
16and deemed a part of a member's unit owner's respective share
17of the common expenses unless: (i) the managing agent fees
18relate to the costs to collect common expenses for the
19association; (ii) the fees are set forth in a contract between
20the managing agent and the association; and (iii) the authority
21to add the management fees to a member's unit owner's
22respective share of the common expenses is specifically stated
23in the declaration or bylaws of the association.
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 unit
2    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        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
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
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 member unit owner leasing the unit shall deliver a
18copy of the signed lease to the association or if the lease is
19oral, a memorandum of the lease, not later than the date of
20occupancy or 10 days after the lease is signed, whichever
21occurs first.
22    (b) If there are multiple owners of a single unit, only one
23of the multiple owners shall be eligible to serve as a member
24of the board at any one time, unless the member owns another
25unit independently.



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1    (c) Two-thirds of the membership may remove a board member
2as a director at a duly called special meeting.
3    (d) In the event of any resale of a unit in a common
4interest community association by a member unit owner other
5than the developer, the board shall make available for
6inspection to the prospective purchaser, upon demand, the
8        (1) A copy of the declaration, other instruments, and
9    any rules and regulations.
10        (2) A statement of any liens, including a statement of
11    the account of the unit setting forth the amounts of unpaid
12    assessments and other charges due and owing.
13        (3) A statement of any capital expenditures
14    anticipated by the association within the current or
15    succeeding 2 fiscal years.
16        (4) A statement of the status and amount of any reserve
17    or replacement fund and any other fund specifically
18    designated for association projects.
19        (5) A copy of the statement of financial condition of
20    the association for the last fiscal year for which such a
21    statement is available.
22        (6) A statement of the status of any pending suits or
23    judgments in which the association is a party.
24        (7) A statement setting forth what insurance coverage
25    is provided for all members unit owners by the association
26    for common properties.



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



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



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1    probable or imminent, (ii) to consider third party
2    contracts or information regarding appointment,
3    employment, or dismissal of an employee, or (iii) to
4    discuss violations of rules and regulations of the
5    association or a member's unit owner's unpaid share of
6    common expenses. Any vote on these matters shall be taken
7    at a meeting or portion thereof open to any member unit
8    owner.
9        (6) The board must reserve a portion of the meeting of
10    the board for comments by members unit owners; provided,
11    however, the duration and meeting order for the member unit
12    owner comment period is within the sole discretion of the
13    board.
14(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
15    (765 ILCS 160/1-45)
16    Sec. 1-45. Finances.
17    (a) Each member unit owner shall receive through a
18prescribed delivery method, at least 30 days but not more than
1960 days prior to the adoption thereof by the board, a copy of
20the proposed annual budget together with an indication of which
21portions are intended for reserves, capital expenditures or
22repairs or payment of real estate taxes.
23    (b) The board shall provide all members unit owners with a
24reasonably detailed summary of the receipts, common expenses,
25and reserves for the preceding budget year. The board shall (i)



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



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



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



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



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



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



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



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1designated as owning an appropriate undivided share of the
2common areas or does not bear an appropriate share of the
3common expenses, or if all of the common expenses or all of the
4common elements have not been distributed in the declaration,
5so that the sum total of the shares of common areas which have
6been distributed or the sum total of the shares of the common
7expenses fail to equal 100%, or if it appears that more than
8100% of the common elements or common expenses have been
9distributed, the error may be corrected by operation of law by
10filing an amendment to the declaration, approved by vote of
11two-thirds of the members of the board or a majority vote of
12the members at a meeting called for that purpose, which
13proportionately adjusts all percentage interests so that the
14total is equal to 100%, unless the declaration specifically
15provides for a different procedure or different percentage vote
16by the owners of the units and the owners of mortgages thereon
17affected by modification being made in the undivided interest
18in the common areas, the number of votes in the association or
19the liability for common expenses appertaining to the unit.
20    (c) If a scrivener's error in the declaration or other
21instrument is corrected by vote of two-thirds of the members of
22the board pursuant to the authority established in subsection
23(a) or subsection (b), the board, upon written petition by
24members with 20% of the votes of the association received
25within 30 days of the board action, shall call a meeting of the
26members within 30 days of the filing of the petition to



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1consider the board action. Unless a majority of the votes of
2the members of the association are cast at the meeting to
3reject the action, it is ratified whether or not a quorum is
5    (d) Nothing contained in this Section shall be construed to
6invalidate any provision of a declaration authorizing the
7developer to amend an instrument prior to the latest date on
8which the initial membership meeting of the members unit owners
9must be held, whether or not it has actually been held, to
10bring the instrument into compliance with the legal
11requirements of the Federal National Mortgage Association, the
12Federal Home Loan Mortgage Corporation, the Federal Housing
13Administration, the United States Department of Veterans
14Affairs, or their respective successors and assigns.
15(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
16    (765 ILCS 160/1-70)
17    Sec. 1-70. Display of American flag or military flag.
18    (a) Notwithstanding any provision in the declaration,
19bylaws, community instruments, rules, regulations, or
20agreements or other instruments of a common interest community
21association or a board's construction of any of those
22instruments, a board may not prohibit the display of the
23American flag or a military flag, or both, on or within the
24limited common areas and facilities of a member unit owner or
25on the immediately adjacent exterior of the building in which



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



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1    flagpole or in a window, but "military flag" does not
2    include a depiction or emblem of a military flag made of
3    lights, paint, roofing, siding, paving materials, flora,
4    or balloons, or any other similar building, landscaping, or
5    decorative component.
6(Source: P.A. 96-1400, eff. 7-29-10.)
7    (765 ILCS 160/1-75)
8    Sec. 1-75. Exemptions for small common community interest
10    (a) A common interest community association organized
11under the General Not for Profit Corporation Act of 1986 and
12having either (i) 10 units or less or (ii) annual budgeted
13assessments of $100,000 or less shall be exempt from this Act
14unless the association affirmatively elects to be covered by
15this Act by a majority of its directors or members.
16    (b) Common interest community associations which in their
17declaration, bylaws, or other governing documents provide that
18the association may not use the courts or an arbitration
19process to collect or enforce assessments, fines, or similar
20levies and common interest community associations (i) of 10
21units or less or (ii) having annual budgeted assessments of
22$50,000 or less shall be exempt from subsection (a) of Section
231-30, subsections (a) and (b) of Section 1-40, and Section 1-55
24but shall be required to provide notice of meetings to members
25unit owners in a manner and at a time that will allow members



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1unit owners to participate in those meetings.
2(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11.)
3    Section 99. Effective date. This Act takes effect upon
4becoming law.".