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| | 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 |
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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 |
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1 | | AN ACT concerning civil law.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Common Interest Community Association Act is |
5 | | amended by changing Section 1-20 as follows: |
6 | | (765 ILCS 160/1-20)
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7 | | Sec. 1-20. Amendments to the declaration, bylaws, or |
8 | | operating agreement. |
9 | | (a) The administration of every property shall be governed |
10 | | by the declaration and bylaws or operating agreement, which may |
11 | | either be embodied in the declaration or in a separate |
12 | | instrument, a true copy of which shall be appended to and |
13 | | recorded with the declaration. No modification or amendment of |
14 | | the declaration, bylaws, or operating agreement shall be valid |
15 | | unless the same is set forth in an amendment thereof and such |
16 | | amendment is duly recorded. An amendment of the declaration, |
17 | | bylaws, or operating agreement shall be deemed effective upon |
18 | | recordation, unless the amendment sets forth a different |
19 | | effective date. |
20 | | (b) Unless otherwise provided by this Act, amendments to |
21 | | community instruments authorized to be recorded shall be |
22 | | executed and recorded by the president of the board or such |
23 | | other officer authorized by the common interest community |
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1 | | association or the community instruments. |
2 | | (c) If an association that currently permits leasing amends |
3 | | its declaration, bylaws, or rules and regulations to prohibit |
4 | | leasing, nothing in this Act or the declarations, bylaws, rules |
5 | | and regulations of an association shall prohibit a unit owner |
6 | | incorporated under 26 USC 501(c)(3) which is leasing a unit at |
7 | | the time of the prohibition from continuing to do so until such |
8 | | time that the unit owner voluntarily sells the unit; and no |
9 | | special fine, fee, dues, or penalty shall be assessed against |
10 | | the unit owner for leasing its unit.
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11 | | (d) No action to incorporate a common interest community as |
12 | | a municipality shall commence until an instrument agreeing to |
13 | | incorporation has been signed by two-thirds of the members. |
14 | | (e) If the community instruments require approval of any |
15 | | mortgagee or
lienholder of record and the mortgagee or |
16 | | lienholder of record receives a request to approve or consent |
17 | | to
the amendment to the community instruments, the mortgagee or |
18 | | lienholder of record is deemed to have
approved or consented to |
19 | | the request unless the mortgagee or lienholder of record |
20 | | delivers a negative
response to the requesting party within 35 |
21 | | days 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 |
24 | | changing Section 27 as follows:
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1 | | (765 ILCS 605/27) (from Ch. 30, par. 327)
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2 | | Sec. 27. Amendments. |
3 | | (a) If there is any unit owner other than the developer, |
4 | | and unless otherwise provided in this Act,
the condominium |
5 | | instruments 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
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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.
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22 | | (b)(1) If there is an omission, error, or inconsistency in |
23 | | a condominium instrument, such that a provision of a |
24 | | condominium instrument does not conform to this Act or to |
25 | | another applicable statute, the association may correct the |
26 | | omission, error, or inconsistency to conform the condominium |
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1 | | instrument to this Act or to another applicable statute by an |
2 | | amendment adopted by vote of two-thirds of the Board of |
3 | | Managers, without a unit owner vote. A provision in a |
4 | | condominium instrument requiring or allowing unit owners, |
5 | | mortgagees, or other lienholders of record to vote to approve |
6 | | an amendment to a condominium instrument, or for the mortgagees |
7 | | or other lienholders of record to be given notice of an |
8 | | amendment to a condominium instrument, is not applicable to an |
9 | | amendment to the extent that the amendment corrects an |
10 | | omission, error, or inconsistency to conform the condominium |
11 | | instrument to this Act or to another applicable statute.
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12 | | (2) If through a scrivener's error, a unit has not been
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13 | | designated as owning an appropriate undivided share of the |
14 | | common elements
or does not bear an appropriate share of the |
15 | | common expenses or that all
the common expenses or all of the |
16 | | common elements in the condominium have
not been distributed in |
17 | | the declaration, so that the sum total of the shares
of common |
18 | | elements which have been distributed or the sum total of the |
19 | | shares
of the common expenses fail to equal 100%, or if it |
20 | | appears that more than
100% of the common elements or common |
21 | | expenses have been distributed, the
error may be corrected by |
22 | | operation of law by filing an amendment to the
declaration |
23 | | approved by vote of two-thirds of the members of the Board
of |
24 | | Managers or a majority vote of the unit owners at a meeting |
25 | | called for
this purpose which proportionately adjusts all |
26 | | percentage interests so that
the total is equal to 100% unless |
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1 | | the condominium instruments specifically
provide for a |
2 | | different procedure or different percentage vote by the owners
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3 | | of the units and the owners of mortgages thereon affected by |
4 | | modification
being made in the undivided interest in the common |
5 | | elements, the number
of votes in the unit owners association or |
6 | | the liability for common expenses
appertaining to the unit.
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7 | | (3) If an omission or error or a scrivener's error in the |
8 | | declaration,
bylaws or other condominium instrument is |
9 | | corrected by vote of
two-thirds of the members of the
Board of |
10 | | Managers pursuant to the authority established in subsections |
11 | | (b)(1)
or (b)(2) of this Section 27 of this Act , the Board upon |
12 | | written petition by
unit owners with 20 percent of the votes of |
13 | | the association filed within
30 days of the Board action shall |
14 | | call a meeting of the unit owners within
30 days of the filing |
15 | | of the petition to consider the Board action. Unless
a majority |
16 | | of the votes of the unit owners of the association are cast at |
17 | | the
meeting to reject the action, it is ratified whether or not |
18 | | a quorum is present.
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19 | | (4) The procedures for amendments set forth in this |
20 | | subsection (b) cannot be
used if such an amendment would |
21 | | materially or adversely affect property
rights of the unit |
22 | | owners unless the affected unit owners consent in writing.
This |
23 | | Section does not restrict the powers of the association to |
24 | | otherwise
amend the declaration, bylaws, or other condominium |
25 | | instruments, but authorizes
a simple process of amendment |
26 | | requiring a lesser vote for the purpose of
correcting defects, |
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1 | | errors, or omissions when the property rights of the
unit |
2 | | owners are not materially or adversely affected.
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3 | | (5) If there is an omission or error in the declaration, |
4 | | bylaws, or other
condominium instruments, which may not be |
5 | | corrected by an amendment procedure
set forth in paragraphs (1) |
6 | | and (2) of this subsection (b) of Section 27 in the
declaration |
7 | | then the Circuit Court in the County in which the condominium
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8 | | is located shall have jurisdiction to hear a petition of one or |
9 | | more of the
unit owners thereon or of the association, to |
10 | | correct the error or omission,
and the action may be a class |
11 | | action. The court may require that one or
more methods of |
12 | | correcting the error or omission be submitted to the unit
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13 | | owners to determine the most acceptable correction. All unit |
14 | | owners in the
association must be joined as parties to the |
15 | | action. Service of process on
owners may be by publication, but |
16 | | the plaintiff shall furnish all unit
owners not personally |
17 | | served with process with copies of the petition and
final |
18 | | judgment of the court by certified mail return receipt |
19 | | requested, at
their last known address.
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20 | | (6) Nothing contained in this Section shall be construed to |
21 | | invalidate
any provision of a condominium instrument |
22 | | authorizing the developer to amend
a condominium instrument |
23 | | prior to the latest date on which the initial
membership |
24 | | meeting of the unit owners must be held, whether or not nor it |
25 | | has
actually been held, to bring the instrument into compliance |
26 | | with the legal
requirements of the Federal National Mortgage |