Full Text of SB2664 98th General Assembly
SB2664sam001 98TH GENERAL ASSEMBLY | Sen. Michael E. Hastings Filed: 3/20/2014
| | 09800SB2664sam001 | | LRB098 12651 HEP 57255 a |
|
| 1 | | AMENDMENT TO SENATE BILL 2664
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2664 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Condominium Property Act is amended by | 5 | | changing Sections 2, 9 and 22.1 as follows:
| 6 | | (765 ILCS 605/2) (from Ch. 30, par. 302)
| 7 | | Sec. 2. Definitions. As used in this Act, unless the | 8 | | context otherwise
requires:
| 9 | | (a) "Declaration" means the instrument by which the | 10 | | property is
submitted to the provisions of this Act, as | 11 | | hereinafter provided, and such
declaration as from time to time | 12 | | amended.
| 13 | | (b) "Parcel" means the lot or lots, tract or tracts of | 14 | | land, described
in the declaration, submitted to the provisions | 15 | | of this Act.
| 16 | | (c) "Property" means all the land, property and space |
| | | 09800SB2664sam001 | - 2 - | LRB098 12651 HEP 57255 a |
|
| 1 | | comprising the
parcel, all improvements and structures | 2 | | erected, constructed or contained
therein or thereon, | 3 | | including the building and all easements, rights and
| 4 | | appurtenances belonging thereto, and all fixtures and | 5 | | equipment intended
for the mutual use, benefit or enjoyment of | 6 | | the unit owners, submitted to
the provisions of this Act.
| 7 | | (d) "Unit" means a part of the property designed and | 8 | | intended for any type
of independent use.
| 9 | | (e) "Common Elements" means all portions of the property | 10 | | except the
units, including limited common elements unless | 11 | | otherwise specified.
| 12 | | (f) "Person" means a natural individual, corporation, | 13 | | partnership,
trustee or other legal entity capable of holding | 14 | | title to real property.
| 15 | | (g) "Unit Owner" means the person or persons whose estates | 16 | | or interests,
individually or collectively, aggregate fee | 17 | | simple absolute ownership of a
unit, or, in the case of a | 18 | | leasehold condominium, the lessee or lessees of a
unit whose | 19 | | leasehold ownership of the unit expires simultaneously with the
| 20 | | lease described in item (x) of this Section.
| 21 | | (h) "Majority" or "majority of the unit owners" means the | 22 | | owners of more
than 50% in the aggregate in interest of the | 23 | | undivided ownership of the
common elements. Any specified | 24 | | percentage of the unit owners means such
percentage in the | 25 | | aggregate in interest of such undivided ownership.
"Majority" | 26 | | or "majority of the members of the board of managers" means
|
| | | 09800SB2664sam001 | - 3 - | LRB098 12651 HEP 57255 a |
|
| 1 | | more than 50% of the total number of persons constituting such | 2 | | board
pursuant to the bylaws. Any specified percentage of the | 3 | | members of the
board of managers means that percentage of the | 4 | | total number of persons
constituting such board pursuant to the | 5 | | bylaws.
| 6 | | (i) "Plat" means a plat or plats of survey of the parcel | 7 | | and of all
units in the property submitted to the provisions of | 8 | | this Act, which may
consist of a three-dimensional horizontal | 9 | | and vertical delineation of all
such units.
| 10 | | (j) "Record" means to record in the office of the recorder | 11 | | or,
whenever required, to file in the office of the Registrar | 12 | | of Titles of the
county wherein the property is located.
| 13 | | (k) "Conversion Condominium" means a property which | 14 | | contains structures,
excepting those newly constructed and | 15 | | intended for condominium ownership, which
are, or have | 16 | | previously been, wholly or partially occupied before recording | 17 | | of
condominium instruments by persons other than those who have | 18 | | contracted for the
purchase of condominiums.
| 19 | | (l) "Condominium Instruments" means all documents and | 20 | | authorized
amendments thereto recorded pursuant to the | 21 | | provisions of the Act,
including the declaration, bylaws and | 22 | | plat.
| 23 | | (m) "Common Expenses" means the proposed or actual expenses | 24 | | affecting
the property, including reserves, if any, lawfully | 25 | | assessed by the Board
of Managers of the Unit Owner's | 26 | | Association.
|
| | | 09800SB2664sam001 | - 4 - | LRB098 12651 HEP 57255 a |
|
| 1 | | (n) "Reserves" means those sums paid by unit owners which | 2 | | are separately
maintained by the board of managers for purposes | 3 | | specified by the board
of managers or the condominium | 4 | | instruments.
| 5 | | (o) "Unit Owners' Association" or "Association" means the | 6 | | association
of all the unit owners, acting pursuant to bylaws | 7 | | through its duly elected
board of managers.
| 8 | | (p) "Purchaser" means any person or persons other than the | 9 | | Developer who
purchase a unit in a bona fide transaction for | 10 | | value.
| 11 | | (q) "Developer" means any person who submits property | 12 | | legally or equitably
owned in fee simple by the developer, or | 13 | | leased to the developer
under a lease described in item (x) of | 14 | | this Section, to the
provisions of this
Act, or any person who | 15 | | offers units
legally or equitably owned in fee simple by the | 16 | | developer, or leased to the
developer under a lease described | 17 | | in item (x) of this Section, for
sale
in the ordinary course of
| 18 | | such person's business, including any successor or successors | 19 | | to
such developers' entire
interest in the property other than | 20 | | the purchaser of an individual unit.
| 21 | | (r) "Add-on Condominium" means a property to which | 22 | | additional property
may be added in accordance with condominium | 23 | | instruments and this Act.
| 24 | | (s) "Limited Common Elements" means a portion of the common | 25 | | elements so
designated in the declaration as being reserved for | 26 | | the use of a certain
unit or units to the exclusion of other |
| | | 09800SB2664sam001 | - 5 - | LRB098 12651 HEP 57255 a |
|
| 1 | | units, including but not limited
to balconies, terraces, patios | 2 | | and parking spaces or facilities.
| 3 | | (t) "Building" means all structures, attached or | 4 | | unattached, containing
one or more units.
| 5 | | (u) "Master Association" means an organization described | 6 | | in Section 18.5
whether or not it is also an association | 7 | | described in Section 18.3.
| 8 | | (v) "Developer Control" means such control at a time prior | 9 | | to the
election
of the Board of Managers provided for in | 10 | | Section 18.2(b) of this Act.
| 11 | | (w) "Meeting of Board of Managers or Board of Master | 12 | | Association"
means any gathering of a quorum of the members of | 13 | | the Board
of Managers or Board of the Master Association held | 14 | | for the purpose of
conducting board business.
| 15 | | (x) "Leasehold Condominium" means a property submitted to | 16 | | the provisions
of this Act which is subject to a lease, the | 17 | | expiration or termination of which
would terminate the | 18 | | condominium and the lessor of which is (i) exempt from
taxation
| 19 | | under Section 501(c)(3) of the Internal Revenue Code of 1986, | 20 | | as amended,
(ii) a
limited liability company whose sole member | 21 | | is exempt from taxation under
Section 501
(c)(3) of the | 22 | | Internal Revenue Code of 1986, as amended, or (iii)
a Public | 23 | | Housing Authority created pursuant to the
Housing Authorities | 24 | | Act that is located in a municipality having a population
in
| 25 | | excess of 1,000,000 inhabitants.
| 26 | | (y) "Regular Monthly Assessments" means the amount charged |
| | | 09800SB2664sam001 | - 6 - | LRB098 12651 HEP 57255 a |
|
| 1 | | by the association as provided for in the current annual budget | 2 | | adopted under subsection (c) of Section 9 of this Act. | 3 | | (Source: P.A. 93-474, eff. 8-8-03.)"; and
| 4 | | (765 ILCS 605/9) (from Ch. 30, par. 309)
| 5 | | Sec. 9. Sharing of expenses - Lien for nonpayment.
| 6 | | (a) All common expenses incurred or accrued prior to the | 7 | | first conveyance
of a unit shall be paid by the developer, and | 8 | | during this period no common
expense assessment shall be | 9 | | payable to the association. It shall be the duty
of each unit | 10 | | owner including the developer to pay his proportionate share of
| 11 | | the common expenses commencing with the first conveyance. The | 12 | | proportionate
share shall be in the same ratio as his | 13 | | percentage of ownership in the common
elements set forth in the | 14 | | declaration.
| 15 | | (b) The condominium instruments may provide that common | 16 | | expenses for
insurance premiums be assessed on a basis | 17 | | reflecting increased charges for
coverage on certain units.
| 18 | | (c) Budget and reserves.
| 19 | | (1) The board of managers shall prepare and distribute | 20 | | to
all unit owners a detailed proposed annual budget, | 21 | | setting forth with
particularity all anticipated common | 22 | | expenses by category as well as all
anticipated assessments | 23 | | and other income. The initial budget and common
expense | 24 | | assessment based thereon shall be adopted prior to the
| 25 | | conveyance of any unit. The budget shall also set forth |
| | | 09800SB2664sam001 | - 7 - | LRB098 12651 HEP 57255 a |
|
| 1 | | each unit owner's
proposed common expense assessment.
| 2 | | (2) All budgets adopted by a board of managers on or | 3 | | after July 1, 1990
shall provide for reasonable reserves | 4 | | for capital expenditures and deferred
maintenance for | 5 | | repair or replacement of the common elements. To determine
| 6 | | the amount of reserves appropriate for an association, the | 7 | | board of
managers shall take into consideration the | 8 | | following: (i) the repair and
replacement cost, and the | 9 | | estimated useful life, of the property which the
| 10 | | association is obligated to maintain, including but not | 11 | | limited to
structural and mechanical components, surfaces | 12 | | of the buildings and common
elements, and energy systems | 13 | | and equipment; (ii) the current and
anticipated return on | 14 | | investment of association funds; (iii) any
independent | 15 | | professional reserve study which the association may | 16 | | obtain;
(iv) the financial impact on unit owners, and the | 17 | | market value of the
condominium units, of any assessment | 18 | | increase needed to fund reserves; and
(v) the ability of | 19 | | the association to obtain financing or refinancing.
| 20 | | (3) Notwithstanding the provisions of this subsection | 21 | | (c), an
association without a reserve requirement in its | 22 | | condominium
instruments may elect to waive in whole or in | 23 | | part the reserve requirements
of this Section by a vote of | 24 | | 2/3 of the total votes of the association.
Any association | 25 | | having elected under this paragraph (3) to waive the
| 26 | | provisions of subsection (c) may by a vote of 2/3 of the |
| | | 09800SB2664sam001 | - 8 - | LRB098 12651 HEP 57255 a |
|
| 1 | | total votes of the
association elect to again be governed | 2 | | by the requirements of subsection (c).
| 3 | | (4) In the event that an association elects to waive | 4 | | all or part of
the reserve requirements of this Section, | 5 | | that fact must be
disclosed after the meeting at which the | 6 | | waiver occurs by the
association in the financial | 7 | | statements of the association and, highlighted
in bold | 8 | | print, in the response to any request of a prospective | 9 | | purchaser
for the information prescribed under Section | 10 | | 22.1; and no member of the
board of managers or the | 11 | | managing agent of the association shall be liable,
and no | 12 | | cause of action may be brought for damages against these | 13 | | parties,
for the lack or inadequacy of reserve funds in the | 14 | | association budget.
| 15 | | (d) (Blank).
| 16 | | (e) The condominium instruments may provide for the | 17 | | assessment,
in connection with expenditures for the limited | 18 | | common elements, of only those
units to which the limited | 19 | | common elements are assigned.
| 20 | | (f) Payment of any assessment shall be in amounts and at | 21 | | times
determined by the board of managers.
| 22 | | (g) Lien.
| 23 | | (1) If any unit owner shall fail or refuse to make any | 24 | | payment of
the common expenses or the amount of any unpaid | 25 | | fine when due, the
amount thereof together with any | 26 | | interest, late charges, reasonable
attorney fees incurred |
| | | 09800SB2664sam001 | - 9 - | LRB098 12651 HEP 57255 a |
|
| 1 | | enforcing the covenants of the condominium
instruments, | 2 | | rules and regulations of the board of managers, or any | 3 | | applicable
statute or ordinance, and costs of collections | 4 | | shall constitute a lien on the
interest of the unit owner | 5 | | in the property prior to all other
liens and encumbrances, | 6 | | recorded or unrecorded, except only (a) taxes,
special | 7 | | assessments and special taxes theretofore or thereafter | 8 | | levied by
any political subdivision or municipal | 9 | | corporation of this State and other
State or federal taxes | 10 | | which by law are a lien on the interest of the
unit owner | 11 | | prior to preexisting recorded encumbrances thereon and
(b) | 12 | | encumbrances on the interest of the unit owner recorded
| 13 | | prior to the date of such failure or refusal which by law | 14 | | would be a lien
thereon prior to subsequently recorded | 15 | | encumbrances. Any action
brought to extinguish the lien of | 16 | | the association shall include the
association as a party.
| 17 | | (2) With respect to encumbrances executed prior to | 18 | | August 30, 1984 or
encumbrances executed subsequent to | 19 | | August 30, 1984 which are neither
bonafide first mortgages | 20 | | nor trust deeds and which encumbrances contain a
statement | 21 | | of a mailing address in the State of Illinois where notice | 22 | | may be
mailed to the encumbrancer thereunder, if and | 23 | | whenever and as often as the
manager or board of managers | 24 | | shall send, by United States certified or
registered mail, | 25 | | return receipt requested, to any such encumbrancer at the
| 26 | | mailing address set forth in the recorded encumbrance a |
| | | 09800SB2664sam001 | - 10 - | LRB098 12651 HEP 57255 a |
|
| 1 | | statement of the
amounts and due dates of the unpaid common | 2 | | expenses with respect to the
encumbered unit, then, unless | 3 | | otherwise provided in the declaration or bylaws,
the prior | 4 | | recorded encumbrance shall be subject to the lien of all | 5 | | unpaid
common expenses with respect to the unit which | 6 | | become due and payable within a
period of 90 days after the | 7 | | date of mailing of each such notice.
| 8 | | (3) The purchaser of a condominium unit at a judicial
| 9 | | foreclosure sale, or a mortgagee who receives title to a | 10 | | unit by deed in
lieu of foreclosure or judgment by common | 11 | | law strict foreclosure or
otherwise takes possession | 12 | | pursuant to court order under the Illinois
Mortgage | 13 | | Foreclosure Law, shall have the duty to pay the unit's
| 14 | | proportionate share of the common expenses for the unit | 15 | | assessed from and
after the first day of the month after | 16 | | the date of the judicial foreclosure
sale, delivery of the | 17 | | deed in lieu of foreclosure, entry of a judgment in
common | 18 | | law strict foreclosure, or taking of possession pursuant to | 19 | | such
court order. Such payment confirms the extinguishment | 20 | | of any lien created
pursuant to paragraph (1) or (2) of | 21 | | this subsection (g) by virtue of the
failure or refusal of | 22 | | a prior unit owner to make payment of common
expenses, | 23 | | where the judicial foreclosure sale has been confirmed by | 24 | | order
of the court, a deed in lieu thereof has been | 25 | | accepted by the lender, or a
consent judgment has been | 26 | | entered by the court.
|
| | | 09800SB2664sam001 | - 11 - | LRB098 12651 HEP 57255 a |
|
| 1 | | (4) The purchaser of a condominium unit at a judicial | 2 | | foreclosure sale, other than a mortgagee, or a purchaser of | 3 | | a condominium unit from a mortgagee who acquired title | 4 | | through a judicial foreclosure, a consent foreclosure, a | 5 | | common law strict foreclosure, or the delivery of a deed in | 6 | | lieu of foreclosure who takes possession of a condominium | 7 | | unit pursuant to a court order or a purchaser who acquires | 8 | | title from a mortgagee shall have the duty to pay to the | 9 | | association an amount not to exceed the total of the unpaid | 10 | | regular monthly assessments for the condominium unit for | 11 | | the 9-month period immediately preceding the date of the | 12 | | judicial foreclosure sale, delivery of the deed in lieu of | 13 | | foreclosure, entry of a judgment in a common law strict | 14 | | foreclosure, or the taking of possession pursuant to a | 15 | | court order under the Illinois Mortgage Foreclosure Law. | 16 | | The amount due may include any attorney's fees incurred by | 17 | | the association due to the non-payment of the assessments | 18 | | during the same 9-month period, and in no event shall the | 19 | | total amount due exceed the sum of 9 months of regular | 20 | | monthly assessments the proportionate share, if any, of the | 21 | | common expenses for the unit which would have become due in | 22 | | the absence of any assessment acceleration during the 6 | 23 | | months immediately preceding institution of an action to | 24 | | enforce the collection of assessments, and which remain | 25 | | unpaid by the owner during whose possession the assessments | 26 | | accrued. If the outstanding assessments are paid at any |
| | | 09800SB2664sam001 | - 12 - | LRB098 12651 HEP 57255 a |
|
| 1 | | time during any action to enforce the collection of | 2 | | assessments, the purchaser shall have no obligation to pay | 3 | | any assessments which accrued before he or she acquired | 4 | | title .
| 5 | | (5) The notice of sale of a condominium unit under | 6 | | subsection (c) of Section 15-1507 of the Code of Civil | 7 | | Procedure shall state that the purchaser of the unit other | 8 | | than a mortgagee shall pay to the association amounts the | 9 | | assessments and the legal fees required by subdivision | 10 | | subdivisions (g)(1) and (g)(4) of Section 9 of this Act. | 11 | | The statement of assessment account issued by the | 12 | | association to a unit owner under subsection (i) of Section | 13 | | 18 of this Act, and the disclosure statement issued to a | 14 | | prospective purchaser under Section 22.1 of this Act, shall | 15 | | state the amount of the assessments and the legal fees, if | 16 | | any, required by subdivision subdivisions (g)(1) and | 17 | | (g)(4) of Section 9 of this Act.
| 18 | | (h) A lien for common expenses shall be in favor of the | 19 | | members of the
board of managers and their successors in office | 20 | | and shall be for the
benefit of all other unit owners. Notice | 21 | | of the lien may be recorded by
the board of managers, or if the | 22 | | developer is the manager or has a majority
of seats on the | 23 | | board of managers and the manager or board of managers
fails to | 24 | | do so, any unit owner may record notice of the lien. Upon the
| 25 | | recording of such notice the lien may be foreclosed by an | 26 | | action brought in
the name of the board of managers in the same |
| | | 09800SB2664sam001 | - 13 - | LRB098 12651 HEP 57255 a |
|
| 1 | | manner as a mortgage of real
property.
| 2 | | (i) Unless otherwise provided in the declaration, the | 3 | | members
of the board of managers and their successors in | 4 | | office, acting on behalf
of the other unit owners, shall have | 5 | | the power to bid on the
interest so foreclosed at the | 6 | | foreclosure sale, and to acquire and
hold, lease, mortgage and | 7 | | convey it.
| 8 | | (j) Any encumbrancer may from time to time request in | 9 | | writing a written
statement from the manager or board of | 10 | | managers setting forth the unpaid
common expenses with respect | 11 | | to the unit covered by his encumbrance.
Unless the request is | 12 | | complied with within 20 days, all unpaid common
expenses which | 13 | | become due prior to the date of the making of such request
| 14 | | shall be subordinate to the lien of the encumbrance. Any | 15 | | encumbrancer
holding a lien on a unit may pay any unpaid common | 16 | | expenses payable with
respect to the unit, and upon payment the | 17 | | encumbrancer shall have a lien on
the unit for the amounts paid | 18 | | at the same rank as the lien of his encumbrance.
| 19 | | (k) Nothing in Public Act 83-1271 is intended to change the | 20 | | lien
priorities of any encumbrance created prior to August 30, | 21 | | 1984.
| 22 | | (Source: P.A. 94-1049, eff. 1-1-07.)
| 23 | | (765 ILCS 605/22.1) (from Ch. 30, par. 322.1)
| 24 | | Sec. 22.1.
(a) In the event of any resale of a condominium | 25 | | unit by a
unit owner other than the developer , the Board of |
| | | 09800SB2664sam001 | - 14 - | LRB098 12651 HEP 57255 a |
|
| 1 | | Managers shall produce for the seller and the prospective | 2 | | purchaser, either electronically or in writing, within 14 days | 3 | | of a request from the owner or the owner's agent if the | 4 | | association is managed by a community association management | 5 | | firm or a community association manager, as those terms are | 6 | | defined in Section 10 of the Community Association Manager | 7 | | Licensing and Disciplinary Act, and within 21 days if the | 8 | | association is self-managed: such owner shall obtain from the | 9 | | Board
of Managers and shall make available for inspection to | 10 | | the prospective
purchaser, upon demand, the following:
| 11 | | (1) A copy of the Declaration, by-laws, other | 12 | | condominium
instruments and any rules and regulations.
| 13 | | (2) A statement of any liens, including a statement of
| 14 | | the account of the unit setting forth the amounts of unpaid | 15 | | assessments and
other charges due and owing as authorized | 16 | | and limited by the provisions
of Section 9 of this Act or | 17 | | the condominium instruments.
| 18 | | (3) A statement of any capital expenditures | 19 | | anticipated by the unit
owner's association within the | 20 | | current or succeeding two fiscal years.
| 21 | | (4) A statement of the status and amount of any reserve
| 22 | | for replacement fund and any portion of such fund earmarked | 23 | | for any
specified project by the Board of Managers.
| 24 | | (5) A copy of the statement of financial condition of | 25 | | the unit owner's
association for the last fiscal year for | 26 | | which such statement is available.
|
| | | 09800SB2664sam001 | - 15 - | LRB098 12651 HEP 57255 a |
|
| 1 | | (6) A statement of the status of any pending suits or
| 2 | | judgments in which the unit owner's association is a party.
| 3 | | (7) A statement setting forth what insurance coverage | 4 | | is
provided for all unit owners by the unit owner's | 5 | | association.
| 6 | | (8) A statement that any improvements or alterations | 7 | | made
to the unit, or the limited common elements assigned | 8 | | thereto, by the prior
unit owner are in good faith believed | 9 | | to be in compliance with the
condominium instruments.
| 10 | | (9) The identity and mailing address of the principal | 11 | | officer of the
unit owner's association or of the other | 12 | | officer or agent as is
specifically designated to receive | 13 | | notices.
| 14 | | (10) If ownership of the condominium unit was | 15 | | transferred by either a judicial foreclosure sale, a | 16 | | consent foreclosure, a common law strict foreclosure, or a | 17 | | deed in lieu of foreclosure, a statement setting forth the | 18 | | total due and owing under subsection (g) of Section 9 of | 19 | | this Act. | 20 | | (b) The principal officer of the unit owner's association | 21 | | or such other
officer as is specifically designated shall | 22 | | furnish the above information
when requested to do so either | 23 | | electronically or in writing and within 14 30 days of the | 24 | | request.
| 25 | | (c) Within 15 days of the recording of a mortgage or trust | 26 | | deed
against a unit ownership given by the owner of that unit |
| | | 09800SB2664sam001 | - 16 - | LRB098 12651 HEP 57255 a |
|
| 1 | | to secure a debt,
the owner shall inform the Board of Managers | 2 | | of the unit owner's
association of the identity of the lender | 3 | | together with a mailing address
at which the lender can receive | 4 | | notices from the association.
If a unit owner fails or refuses | 5 | | to inform the Board as required under
subsection (c) then that | 6 | | unit owner shall be liable to the association for
all costs, | 7 | | expenses and reasonable attorneys fees and such other damages,
| 8 | | if any, incurred by the association as a result of such failure | 9 | | or refusal.
| 10 | | A reasonable fee covering the direct out-of-pocket cost of | 11 | | providing
such information and copying may be charged by the | 12 | | association or its Board
of Managers to the unit seller for | 13 | | providing such information.
| 14 | | (Source: P.A. 87-692.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.".
|
|