Illinois General Assembly - Full Text of HB4158
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Full Text of HB4158  102nd General Assembly

HB4158 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4158

 

Introduced 10/19/2021, by Rep. Margaret Croke

 

SYNOPSIS AS INTRODUCED:
 
765 ILCS 160/1-30
765 ILCS 605/19  from Ch. 30, par. 319

    Amends the Common Interest Community Association Act. Requires a common interest community association's board of managers or board of directors to maintain a record of any reserve study. Amends the Condominium Property Act. Requires the board of managers of every association to keep and maintain records of any reserve study.


LRB102 20110 LNS 28960 b

 

 

A BILL FOR

 

HB4158LRB102 20110 LNS 28960 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
5is amended by changing Section 1-30 as follows:
 
6    (765 ILCS 160/1-30)
7    Sec. 1-30. Board duties and obligations; records.
8    (a) The board shall meet at least 4 times annually.
9    (b) A common interest community association may not enter
10into a contract with a current board member, or with a
11corporation, limited liability company, or partnership in
12which a board member or a member of his or her immediate family
13has 25% or more interest, unless notice of intent to enter into
14the contract is given to members within 20 days after a
15decision is made to enter into the contract and the members are
16afforded an opportunity by filing a petition, signed by 20% of
17the membership, for an election to approve or disapprove the
18contract; such petition shall be filed within 20 days after
19such notice and such election shall be held within 30 days
20after filing the petition. For purposes of this subsection, a
21board member's immediate family means the board member's
22spouse, parents, siblings, and children.
23    (c) The bylaws or operating agreement shall provide for

 

 

HB4158- 2 -LRB102 20110 LNS 28960 b

1the maintenance, repair, and replacement of the common areas
2and payments therefor, including the method of approving
3payment vouchers.
4    (d) (Blank).
5    (e) The association may engage the services of a manager
6or management company.
7    (f) The association shall have one class of membership
8unless the declaration, bylaws, or operating agreement provide
9otherwise; however, this subsection (f) shall not be construed
10to limit the operation of subsection (c) of Section 1-20 of
11this Act.
12    (g) The board shall have the power, after notice and an
13opportunity to be heard, to levy and collect reasonable fines
14from members or unit owners for violations of the declaration,
15bylaws, operating agreement, and rules and regulations of the
16common interest community association.
17    (h) Other than attorney's fees and court or arbitration
18costs, no fees pertaining to the collection of a member's or
19unit owner's financial obligation to the association,
20including fees charged by a manager or managing agent, shall
21be added to and deemed a part of a member's or unit owner's
22respective share of the common expenses unless: (i) the
23managing agent fees relate to the costs to collect common
24expenses for the association; (ii) the fees are set forth in a
25contract between the managing agent and the association; and
26(iii) the authority to add the management fees to a member's or

 

 

HB4158- 3 -LRB102 20110 LNS 28960 b

1unit owner's respective share of the common expenses is
2specifically stated in the declaration, bylaws, or operating
3agreement of the association.
4    (i) Board records.
5        (1) The board shall maintain the following records of
6    the association and make them available for examination
7    and copying at convenient hours of weekdays by any member
8    or unit owner in a common interest community subject to
9    the authority of the board, their mortgagees, and their
10    duly authorized agents or attorneys:
11            (i) Copies of the recorded declaration, other
12        community instruments, other duly recorded covenants
13        and bylaws and any amendments, articles of
14        incorporation, articles of organization, annual
15        reports, and any rules and regulations adopted by the
16        board shall be available. Prior to the organization of
17        the board, the developer shall maintain and make
18        available the records set forth in this paragraph (i)
19        for examination and copying.
20            (ii) Detailed and accurate records in
21        chronological order of the receipts and expenditures
22        affecting the common areas, specifying and itemizing
23        the maintenance and repair expenses of the common
24        areas and any other expenses incurred, and copies of
25        all contracts, leases, or other agreements entered
26        into by the board shall be maintained.

 

 

HB4158- 4 -LRB102 20110 LNS 28960 b

1            (iii) The minutes of all meetings of the board
2        which shall be maintained for not less than 7 years.
3            (iv) With a written statement of a proper purpose,
4        ballots and proxies related thereto, if any, for any
5        election held for the board and for any other matters
6        voted on by the members, which shall be maintained for
7        not less than one year.
8            (v) With a written statement of a proper purpose,
9        such other records of the board as are available for
10        inspection by members of a not-for-profit corporation
11        pursuant to Section 107.75 of the General Not For
12        Profit Corporation Act of 1986 shall be maintained.
13            (vi) With respect to units owned by a land trust, a
14        living trust, or other legal entity, the trustee,
15        officer, or manager of the entity may designate, in
16        writing, a person to cast votes on behalf of the member
17        or unit owner and a designation shall remain in effect
18        until a subsequent document is filed with the
19        association.
20            (vii) Any reserve study.
21        (2) Where a request for records under this subsection
22    is made in writing to the board or its agent, failure to
23    provide the requested record or to respond within 30 days
24    shall be deemed a denial by the board.
25        (3) A reasonable fee may be charged by the board for
26    the cost of retrieving and copying records properly

 

 

HB4158- 5 -LRB102 20110 LNS 28960 b

1    requested.
2        (4) If the board fails to provide records properly
3    requested under paragraph (1) of this subsection (i)
4    within the time period provided in that paragraph (1), the
5    member may seek appropriate relief and shall be entitled
6    to an award of reasonable attorney's fees and costs if the
7    member prevails and the court finds that such failure is
8    due to the acts or omissions of the board of managers or
9    the board of directors.
10    (j) The board shall have standing and capacity to act in a
11representative capacity in relation to matters involving the
12common areas or more than one unit, on behalf of the members or
13unit owners as their interests may appear.
14(Source: P.A. 98-232, eff. 1-1-14; 98-241, eff. 8-9-13;
1598-756, eff. 7-16-14; 99-41, eff. 7-14-15.)
 
16    Section 10. The Condominium Property Act is amended by
17changing Section 19 as follows:
 
18    (765 ILCS 605/19)  (from Ch. 30, par. 319)
19    Sec. 19. Records of the association; availability for
20examination.
21    (a) The board of managers of every association shall keep
22and maintain the following records, or true and complete
23copies of these records, at the association's principal
24office:

 

 

HB4158- 6 -LRB102 20110 LNS 28960 b

1        (1) the association's declaration, bylaws, and plats
2    of survey, and all amendments of these;
3        (2) the rules and regulations of the association, if
4    any;
5        (3) if the association is incorporated as a
6    corporation, the articles of incorporation of the
7    association and all amendments to the articles of
8    incorporation;
9        (4) minutes of all meetings of the association and its
10    board of managers for the immediately preceding 7 years;
11        (5) all current policies of insurance of the
12    association;
13        (6) all contracts, leases, and other agreements then
14    in effect to which the association is a party or under
15    which the association or the unit owners have obligations
16    or liabilities;
17        (7) a current listing of the names, addresses, email
18    addresses, telephone numbers, and weighted vote of all
19    members entitled to vote;
20        (8) ballots and proxies related to ballots for all
21    matters voted on by the members of the association during
22    the immediately preceding 12 months, including, but not
23    limited to, the election of members of the board of
24    managers; and
25        (9) the books and records for the association's
26    current and 10 immediately preceding fiscal years,

 

 

HB4158- 7 -LRB102 20110 LNS 28960 b

1    including, but not limited to, itemized and detailed
2    records of all receipts, expenditures, and accounts; and
3        (10) any reserve study.
4    (b) Any member of an association shall have the right to
5inspect, examine, and make copies of the records described in
6subdivisions (1), (2), (3), (4), (5), (6), and (9), and (10) of
7subsection (a) of this Section, in person or by agent, at any
8reasonable time or times, at the association's principal
9office. In order to exercise this right, a member must submit a
10written request to the association's board of managers or its
11authorized agent, stating with particularity the records
12sought to be examined. Failure of an association's board of
13managers to make available all records so requested within 10
14business days of receipt of the member's written request shall
15be deemed a denial.
16    Any member who prevails in an enforcement action to compel
17examination of records described in subdivisions (1), (2),
18(3), (4), (5), (6), and (9), and (10) of subsection (a) of this
19Section shall be entitled to recover reasonable attorney's
20fees and costs from the association.
21    (c) (Blank).
22    (d) (Blank).
23    (d-5) As used in this Section, "commercial purpose" means
24the use of any part of a record or records described in
25subdivisions (7) and (8) of subsection (a) of this Section, or
26information derived from such records, in any form for sale,

 

 

HB4158- 8 -LRB102 20110 LNS 28960 b

1resale, or solicitation or advertisement for sales or
2services.
3    (e) Except as otherwise provided in subsection (g) of this
4Section, any member of an association shall have the right to
5inspect, examine, and make copies of the records described in
6subdivisions (7) and (8) of subsection (a) of this Section, in
7person or by agent, at any reasonable time or times but only
8for a purpose that relates to the association, at the
9association's principal office. In order to exercise this
10right, a member must submit a written request, to the
11association's board of managers or its authorized agent,
12stating with particularity the records sought to be examined.
13As a condition for exercising this right, the board of
14managers or authorized agent of the association may require
15the member to certify in writing that the information
16contained in the records obtained by the member will not be
17used by the member for any commercial purpose or for any
18purpose that does not relate to the association. The board of
19managers of the association may impose a fine in accordance
20with item (l) of Section 18.4 upon any person who makes a false
21certification. Subject to the provisions of subsection (g) of
22this Section, failure of an association's board of managers to
23make available all records so requested within 10 business
24days of receipt of the member's written request shall be
25deemed a denial; provided, however, that the board of managers
26of an association that has adopted a secret ballot election

 

 

HB4158- 9 -LRB102 20110 LNS 28960 b

1process as provided in Section 18 of this Act shall not be
2deemed to have denied a member's request for records described
3in subdivision (8) of subsection (a) of this Section if voting
4ballots, without identifying unit numbers, are made available
5to the requesting member within 10 business days of receipt of
6the member's written request.
7    Any member who prevails in an enforcement action to compel
8examination of records described in subdivision (7) or (8) of
9subsection (a) of this Section shall be entitled to recover
10reasonable attorney's fees and costs from the association only
11if the court finds that the board of directors acted in bad
12faith in denying the member's request.
13    (f) The actual cost to the association of retrieving and
14making requested records available for inspection and
15examination under this Section may be charged by the
16association to the requesting member. If a member requests
17copies of records requested under this Section, the actual
18costs to the association of reproducing the records may also
19be charged by the association to the requesting member.
20    (g) Notwithstanding the provisions of subsection (e) of
21this Section, unless otherwise directed by court order, an
22association need not make the following records available for
23inspection, examination, or copying by its members:
24        (1) documents relating to appointment, employment,
25    discipline, or dismissal of association employees;
26        (2) documents relating to actions pending against or

 

 

HB4158- 10 -LRB102 20110 LNS 28960 b

1    on behalf of the association or its board of managers in a
2    court or administrative tribunal;
3        (3) documents relating to actions threatened against,
4    or likely to be asserted on behalf of, the association or
5    its board of managers in a court or administrative
6    tribunal;
7        (4) documents relating to common expenses or other
8    charges owed by a member other than the requesting member;
9    and
10        (5) documents provided to an association in connection
11    with the lease, sale, or other transfer of a unit by a
12    member other than the requesting member.
13    (h) The provisions of this Section are applicable to all
14condominium instruments recorded under this Act. Any portion
15of a condominium instrument that contains provisions contrary
16to these provisions shall be void as against public policy and
17ineffective. Any condominium instrument that fails to contain
18the provisions required by this Section shall be deemed to
19incorporate the provisions by operation of law.
20(Source: P.A. 100-292, eff. 1-1-18; 100-863, eff. 8-14-18.)