Full Text of HB3627 100th General Assembly
HB3627 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB3627 Introduced , by Rep. Steven A. Andersson SYNOPSIS AS INTRODUCED: |
| 765 ILCS 160/1-45 | | 765 ILCS 605/18.10 new | |
|
Amends the Common Interest Community Association Act and the Condominium Property Act. Provides that associations that consist of 1,000 or more units shall use generally accepted accounting principles in fulfilling their accounting obligations.
|
| |
| | A BILL FOR |
|
| | | HB3627 | | LRB100 10122 HEP 20296 b |
|
| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Common Interest Community Association Act is | 5 | | amended by changing Section 1-45 as follows: | 6 | | (765 ILCS 160/1-45)
| 7 | | Sec. 1-45. Finances. | 8 | | (a) Each member shall receive through a prescribed delivery | 9 | | method, at least 30 days but not more than 60 days prior to the | 10 | | adoption thereof by the board, a copy of the proposed annual | 11 | | budget together with an indication of which portions are | 12 | | intended for reserves, capital expenditures or repairs or | 13 | | payment of real estate taxes. | 14 | | (b) The board shall provide all members with a reasonably | 15 | | detailed summary of the receipts, common expenses, and reserves | 16 | | for the preceding budget year. The board shall (i) make | 17 | | available for review to all members an itemized accounting of | 18 | | the common expenses for the preceding year actually incurred or | 19 | | paid, together with an indication of which portions were for | 20 | | reserves, capital expenditures or repairs or payment of real | 21 | | estate taxes and with a tabulation of the amounts collected | 22 | | pursuant to the budget or assessment, and showing the net | 23 | | excess or deficit of income over expenditures plus reserves or |
| | | HB3627 | - 2 - | LRB100 10122 HEP 20296 b |
|
| 1 | | (ii) provide a consolidated annual independent audit report of | 2 | | the financial status of all fund accounts within the | 3 | | association. | 4 | | (c) If an adopted budget or any separate assessment adopted | 5 | | by the board would result in the sum of all regular and | 6 | | separate assessments payable in the current fiscal year | 7 | | exceeding 115% of the sum of all regular and separate | 8 | | assessments payable during the preceding fiscal year, the | 9 | | common interest community association, upon written petition | 10 | | by members with 20% of the votes of the association delivered | 11 | | to the board within 14 days of the board action, shall call a | 12 | | meeting of the members within 30 days of the date of delivery | 13 | | of the petition to consider the budget or separate assessment; | 14 | | unless a majority of the total votes of the members are cast at | 15 | | the meeting to reject the budget or separate assessment, it | 16 | | shall be deemed ratified. | 17 | | (d) If total common expenses exceed the total amount of the | 18 | | approved and adopted budget, the common interest community | 19 | | association shall disclose this variance to all its members and | 20 | | specifically identify the subsequent assessments needed to | 21 | | offset this variance in future budgets. | 22 | | (e) Separate assessments for expenditures relating to | 23 | | emergencies or mandated by law may be adopted by the board | 24 | | without being subject to member approval or the provisions of | 25 | | subsection (c) or (f) of this Section. As used herein, | 26 | | "emergency" means a danger to or a compromise of the structural |
| | | HB3627 | - 3 - | LRB100 10122 HEP 20296 b |
|
| 1 | | integrity of the common areas or any of the common facilities | 2 | | of the common interest community. "Emergency" also includes a | 3 | | danger to the life, health or safety of the membership. | 4 | | (f) Assessments for additions and alterations to the common | 5 | | areas or to association-owned property not included in the | 6 | | adopted annual budget, shall be separately assessed and are | 7 | | subject to approval of a simple majority of the total members | 8 | | at a meeting called for that purpose. | 9 | | (g) The board may adopt separate assessments payable over | 10 | | more than one fiscal year. With respect to multi-year | 11 | | assessments not governed by subsections (e) and (f) of this | 12 | | Section, the entire amount of the multi-year assessment shall | 13 | | be deemed considered and authorized in the first fiscal year in | 14 | | which the assessment is approved. | 15 | | (h) The board of a common interest community association | 16 | | shall have the authority to establish and maintain a system of | 17 | | master metering of public utility services to collect payments | 18 | | in conjunction therewith, subject to the requirements of the | 19 | | Tenant Utility Payment Disclosure Act. | 20 | | (i) An association subject to this Act that consists of | 21 | | 1,000 or more units shall use generally accepted accounting | 22 | | principles in fulfilling any accounting obligations under this | 23 | | Act.
| 24 | | (Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11; | 25 | | 97-1090, eff. 8-24-12.) |
| | | HB3627 | - 4 - | LRB100 10122 HEP 20296 b |
|
| 1 | | Section 10. The Condominium Property Act is amended by | 2 | | adding Section 18.10 as follows: | 3 | | (765 ILCS 605/18.10 new) | 4 | | Sec. 18.10. Generally accepted accounting principles. An | 5 | | association subject to this Act that consists of 1,000 or more | 6 | | units shall use generally accepted accounting principles in | 7 | | fulfilling any accounting obligations under this Act.
|
|