SB0949 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0949

 

Introduced 2/7/2017, by Sen. Michael E. Hastings

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 160/1-20
765 ILCS 605/27  from Ch. 30, par. 327

    Amends the Common Interest Community Association Act and the Condominium Property Act. Provides that if the condominium or community instruments require approval of any mortgagee or lienholder of record and the mortgagee or lienholder of record receives a request to approve or consent to the amendment to the condominium or community instruments, the mortgagee or lienholder of record is deemed to have approved or consented to the request unless the mortgagee or lienholder of record delivers a negative response to the requesting party within 35 days after the mailing of the request.


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A BILL FOR

 

SB0949LRB100 06989 HEP 17042 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 Common Interest Community Association Act is
5amended by changing Section 1-20 as follows:
 
6    (765 ILCS 160/1-20)
7    Sec. 1-20. Amendments to the declaration, bylaws, or
8operating agreement.
9    (a) The administration of every property shall be governed
10by the declaration and bylaws or operating agreement, which may
11either be embodied in the declaration or in a separate
12instrument, a true copy of which shall be appended to and
13recorded with the declaration. No modification or amendment of
14the declaration, bylaws, or operating agreement shall be valid
15unless the same is set forth in an amendment thereof and such
16amendment is duly recorded. An amendment of the declaration,
17bylaws, or operating agreement shall be deemed effective upon
18recordation, unless the amendment sets forth a different
19effective date.
20    (b) Unless otherwise provided by this Act, amendments to
21community instruments authorized to be recorded shall be
22executed and recorded by the president of the board or such
23other officer authorized by the common interest community

 

 

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1association or the community instruments.
2    (c) If an association that currently permits leasing amends
3its declaration, bylaws, or rules and regulations to prohibit
4leasing, nothing in this Act or the declarations, bylaws, rules
5and regulations of an association shall prohibit a unit owner
6incorporated under 26 USC 501(c)(3) which is leasing a unit at
7the time of the prohibition from continuing to do so until such
8time that the unit owner voluntarily sells the unit; and no
9special fine, fee, dues, or penalty shall be assessed against
10the unit owner for leasing its unit.
11    (d) No action to incorporate a common interest community as
12a municipality shall commence until an instrument agreeing to
13incorporation has been signed by two-thirds of the members.
14    (e) If the community instruments require approval of any
15mortgagee or lienholder of record and the mortgagee or
16lienholder of record receives a request to approve or consent
17to the amendment to the community instruments, the mortgagee or
18lienholder of record is deemed to have approved or consented to
19the request unless the mortgagee or lienholder of record
20delivers a negative response to the requesting party within 35
21days after the mailing of the request.
22(Source: P.A. 99-41, eff. 7-14-15.)
 
23    Section 10. The Condominium Property Act is amended by
24changing Section 27 as follows:
 

 

 

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1    (765 ILCS 605/27)  (from Ch. 30, par. 327)
2    Sec. 27. Amendments.
3    (a) If there is any unit owner other than the developer,
4and unless otherwise provided in this Act, the condominium
5instruments shall be amended only as follows:
6        (i) upon the affirmative vote of 2/3 of those voting or
7    upon the majority specified by the condominium
8    instruments, provided that in no event shall the
9    condominium instruments require more than a three-quarters
10    vote of all unit owners; and
11        (ii) with the approval of, or notice to, any mortgagees
12    or other lienholders of record, if required under the
13    provisions of the condominium instruments. If the
14    condominium instruments require approval of any mortgagee
15    or lienholder of record and the mortgagee or lienholder of
16    record receives a request to approve or consent to the
17    amendment to the condominium instruments, the mortgagee or
18    lienholder of record is deemed to have approved or
19    consented to the request unless the mortgagee or lienholder
20    of record delivers a negative response to the requesting
21    party within 35 days after the mailing of the request.
22    (b)(1) If there is an omission, error, or inconsistency in
23a condominium instrument, such that a provision of a
24condominium instrument does not conform to this Act or to
25another applicable statute, the association may correct the
26omission, error, or inconsistency to conform the condominium

 

 

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1instrument to this Act or to another applicable statute by an
2amendment adopted by vote of two-thirds of the Board of
3Managers, without a unit owner vote. A provision in a
4condominium instrument requiring or allowing unit owners,
5mortgagees, or other lienholders of record to vote to approve
6an amendment to a condominium instrument, or for the mortgagees
7or other lienholders of record to be given notice of an
8amendment to a condominium instrument, is not applicable to an
9amendment to the extent that the amendment corrects an
10omission, error, or inconsistency to conform the condominium
11instrument to this Act or to another applicable statute.
12    (2) If through a scrivener's error, a unit has not been
13designated as owning an appropriate undivided share of the
14common elements or does not bear an appropriate share of the
15common expenses or that all the common expenses or all of the
16common elements in the condominium have not been distributed in
17the declaration, so that the sum total of the shares of common
18elements which have been distributed or the sum total of the
19shares of the common expenses fail to equal 100%, or if it
20appears that more than 100% of the common elements or common
21expenses have been distributed, the error may be corrected by
22operation of law by filing an amendment to the declaration
23approved by vote of two-thirds of the members of the Board of
24Managers or a majority vote of the unit owners at a meeting
25called for this purpose which proportionately adjusts all
26percentage interests so that the total is equal to 100% unless

 

 

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1the condominium instruments specifically provide for a
2different procedure or different percentage vote by the owners
3of the units and the owners of mortgages thereon affected by
4modification being made in the undivided interest in the common
5elements, the number of votes in the unit owners association or
6the liability for common expenses appertaining to the unit.
7    (3) If an omission or error or a scrivener's error in the
8declaration, bylaws or other condominium instrument is
9corrected by vote of two-thirds of the members of the Board of
10Managers pursuant to the authority established in subsections
11(b)(1) or (b)(2) of this Section 27 of this Act, the Board upon
12written petition by unit owners with 20 percent of the votes of
13the association filed within 30 days of the Board action shall
14call a meeting of the unit owners within 30 days of the filing
15of the petition to consider the Board action. Unless a majority
16of the votes of the unit owners of the association are cast at
17the meeting to reject the action, it is ratified whether or not
18a quorum is present.
19    (4) The procedures for amendments set forth in this
20subsection (b) cannot be used if such an amendment would
21materially or adversely affect property rights of the unit
22owners unless the affected unit owners consent in writing. This
23Section does not restrict the powers of the association to
24otherwise amend the declaration, bylaws, or other condominium
25instruments, but authorizes a simple process of amendment
26requiring a lesser vote for the purpose of correcting defects,

 

 

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1errors, or omissions when the property rights of the unit
2owners are not materially or adversely affected.
3    (5) If there is an omission or error in the declaration,
4bylaws, or other condominium instruments, which may not be
5corrected by an amendment procedure set forth in paragraphs (1)
6and (2) of this subsection (b) of Section 27 in the declaration
7then the Circuit Court in the County in which the condominium
8is located shall have jurisdiction to hear a petition of one or
9more of the unit owners thereon or of the association, to
10correct the error or omission, and the action may be a class
11action. The court may require that one or more methods of
12correcting the error or omission be submitted to the unit
13owners to determine the most acceptable correction. All unit
14owners in the association must be joined as parties to the
15action. Service of process on owners may be by publication, but
16the plaintiff shall furnish all unit owners not personally
17served with process with copies of the petition and final
18judgment of the court by certified mail return receipt
19requested, at their last known address.
20    (6) Nothing contained in this Section shall be construed to
21invalidate any provision of a condominium instrument
22authorizing the developer to amend a condominium instrument
23prior to the latest date on which the initial membership
24meeting of the unit owners must be held, whether or not nor it
25has actually been held, to bring the instrument into compliance
26with the legal requirements of the Federal National Mortgage

 

 

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1Association, the Federal Home Loan Mortgage Corporation, the
2Federal Housing Administration, the United States Veterans
3Administration or their respective successors and assigns.
4(Source: P.A. 98-282, eff. 1-1-14; 99-472, eff. 6-1-16; revised
59-1-16.)