|
| | SB0949 Engrossed | | LRB100 06989 HEP 17042 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 1-20 as follows: |
6 | | (765 ILCS 160/1-20)
|
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 |
|
| | SB0949 Engrossed | - 2 - | LRB100 06989 HEP 17042 b |
|
|
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.
|
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 60 |
21 | | days after the mailing of the request. A request to approve or |
22 | | consent to an amendment to the community instruments that is |
23 | | required to be sent to a mortgagee or lienholder of record |
24 | | shall be sent by certified mail. |
25 | | (Source: P.A. 99-41, eff. 7-14-15.) |
|
| | SB0949 Engrossed | - 3 - | LRB100 06989 HEP 17042 b |
|
|
1 | | Section 10. The Condominium Property Act is amended by |
2 | | changing Section 27 as follows:
|
3 | | (765 ILCS 605/27) (from Ch. 30, par. 327)
|
4 | | Sec. 27. Amendments. |
5 | | (a) If there is any unit owner other than the developer, |
6 | | and unless otherwise provided in this Act,
the condominium |
7 | | instruments shall be amended only as follows: |
8 | | (i) upon the
affirmative vote of 2/3 of those voting or |
9 | | upon the majority
specified by the condominium |
10 | | instruments, provided that in no event shall the |
11 | | condominium instruments require more than a three-quarters |
12 | | vote of all unit owners; and
|
13 | | (ii) with the
approval of, or notice to, any mortgagees |
14 | | or other lienholders of record, if required under the |
15 | | provisions of
the condominium instruments.
If the |
16 | | condominium instruments require approval of any mortgagee |
17 | | or
lienholder of record and the mortgagee or lienholder of |
18 | | record receives a request to approve or consent to
the |
19 | | amendment to the condominium instruments, the mortgagee or |
20 | | lienholder of record is deemed to have
approved or |
21 | | consented to the request unless the mortgagee or lienholder |
22 | | of record delivers a negative
response to the requesting |
23 | | party within 60 days after the mailing of the request. A |
24 | | request to approve or consent to an amendment to the |
25 | | condominium instruments that is required to be sent to a |
|
| | SB0949 Engrossed | - 4 - | LRB100 06989 HEP 17042 b |
|
|
1 | | mortgagee or lienholder of record shall be sent by |
2 | | certified mail.
|
3 | | (b)(1) If there is an omission, error, or inconsistency in |
4 | | a condominium instrument, such that a provision of a |
5 | | condominium instrument does not conform to this Act or to |
6 | | another applicable statute, the association may correct the |
7 | | omission, error, or inconsistency to conform the condominium |
8 | | instrument to this Act or to another applicable statute by an |
9 | | amendment adopted by vote of two-thirds of the Board of |
10 | | Managers, without a unit owner vote. A provision in a |
11 | | condominium instrument requiring or allowing unit owners, |
12 | | mortgagees, or other lienholders of record to vote to approve |
13 | | an amendment to a condominium instrument, or for the mortgagees |
14 | | or other lienholders of record to be given notice of an |
15 | | amendment to a condominium instrument, is not applicable to an |
16 | | amendment to the extent that the amendment corrects an |
17 | | omission, error, or inconsistency to conform the condominium |
18 | | instrument to this Act or to another applicable statute.
|
19 | | (2) If through a scrivener's error, a unit has not been
|
20 | | designated as owning an appropriate undivided share of the |
21 | | common elements
or does not bear an appropriate share of the |
22 | | common expenses or that all
the common expenses or all of the |
23 | | common elements in the condominium have
not been distributed in |
24 | | the declaration, so that the sum total of the shares
of common |
25 | | elements which have been distributed or the sum total of the |
26 | | shares
of the common expenses fail to equal 100%, or if it |
|
| | SB0949 Engrossed | - 5 - | LRB100 06989 HEP 17042 b |
|
|
1 | | appears that more than
100% of the common elements or common |
2 | | expenses have been distributed, the
error may be corrected by |
3 | | operation of law by filing an amendment to the
declaration |
4 | | approved by vote of two-thirds of the members of the Board
of |
5 | | Managers or a majority vote of the unit owners at a meeting |
6 | | called for
this purpose which proportionately adjusts all |
7 | | percentage interests so that
the total is equal to 100% unless |
8 | | the condominium instruments specifically
provide for a |
9 | | different procedure or different percentage vote by the owners
|
10 | | of the units and the owners of mortgages thereon affected by |
11 | | modification
being made in the undivided interest in the common |
12 | | elements, the number
of votes in the unit owners association or |
13 | | the liability for common expenses
appertaining to the unit.
|
14 | | (3) If an omission or error or a scrivener's error in the |
15 | | declaration,
bylaws or other condominium instrument is |
16 | | corrected by vote of
two-thirds of the members of the
Board of |
17 | | Managers pursuant to the authority established in subsections |
18 | | (b)(1)
or (b)(2) of this Section 27 of this Act , the Board upon |
19 | | written petition by
unit owners with 20 percent of the votes of |
20 | | the association filed within
30 days of the Board action shall |
21 | | call a meeting of the unit owners within
30 days of the filing |
22 | | of the petition to consider the Board action. Unless
a majority |
23 | | of the votes of the unit owners of the association are cast at |
24 | | the
meeting to reject the action, it is ratified whether or not |
25 | | a quorum is present.
|
26 | | (4) The procedures for amendments set forth in this |
|
| | SB0949 Engrossed | - 6 - | LRB100 06989 HEP 17042 b |
|
|
1 | | subsection (b) cannot be
used if such an amendment would |
2 | | materially or adversely affect property
rights of the unit |
3 | | owners unless the affected unit owners consent in writing.
This |
4 | | Section does not restrict the powers of the association to |
5 | | otherwise
amend the declaration, bylaws, or other condominium |
6 | | instruments, but authorizes
a simple process of amendment |
7 | | requiring a lesser vote for the purpose of
correcting defects, |
8 | | errors, or omissions when the property rights of the
unit |
9 | | owners are not materially or adversely affected.
|
10 | | (5) If there is an omission or error in the declaration, |
11 | | bylaws, or other
condominium instruments, which may not be |
12 | | corrected by an amendment procedure
set forth in paragraphs (1) |
13 | | and (2) of this subsection (b) of Section 27 in the
declaration |
14 | | then the Circuit Court in the County in which the condominium
|
15 | | is located shall have jurisdiction to hear a petition of one or |
16 | | more of the
unit owners thereon or of the association, to |
17 | | correct the error or omission,
and the action may be a class |
18 | | action. The court may require that one or
more methods of |
19 | | correcting the error or omission be submitted to the unit
|
20 | | owners to determine the most acceptable correction. All unit |
21 | | owners in the
association must be joined as parties to the |
22 | | action. Service of process on
owners may be by publication, but |
23 | | the plaintiff shall furnish all unit
owners not personally |
24 | | served with process with copies of the petition and
final |
25 | | judgment of the court by certified mail return receipt |
26 | | requested, at
their last known address.
|
|
| | SB0949 Engrossed | - 7 - | LRB100 06989 HEP 17042 b |
|
|
1 | | (6) Nothing contained in this Section shall be construed to |
2 | | invalidate
any provision of a condominium instrument |
3 | | authorizing the developer to amend
a condominium instrument |
4 | | prior to the latest date on which the initial
membership |
5 | | meeting of the unit owners must be held, whether or not nor it |
6 | | has
actually been held, to bring the instrument into compliance |
7 | | with the legal
requirements of the Federal National Mortgage |
8 | | Association, the Federal Home
Loan Mortgage Corporation, the |
9 | | Federal Housing Administration, the United
States Veterans |
10 | | Administration or their respective successors and assigns.
|
11 | | (Source: P.A. 98-282, eff. 1-1-14; 99-472, eff. 6-1-16; revised |
12 | | 9-1-16.)
|