State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]
[ Senate Amendment 001 ][ Conference Committee Report 001 ]

91_SB0242eng

 
SB242 Engrossed                                LRB9101314KSgc

 1        AN  ACT to amend the Condominium Property Act by changing
 2    Sections 18.2 and 18.5.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.  The  Condominium  Property Act is amended by
 6    changing Sections 18.2 and 18.5 as follows:

 7        (765 ILCS 605/18.2) (from Ch. 30, par. 318.2)
 8        Sec. 18.2.  Administration of property prior to  election
 9    of initial board of managers.
10        (a)  Until election of the initial board of managers that
11    is  comprised  of  a  majority  of unit owners other than the
12    developer (first unit owner  board  of  managers),  the  same
13    rights,   titles,  powers,  privileges,  trusts,  duties  and
14    obligations vested in or imposed upon the board  of  managers
15    by  this  Act and in the declaration and bylaws shall be held
16    and performed by the developer.
17        (b) (i)  The election of the first unit  owner  board  of
18        managers  shall  be held not later than 60 days after the
19        conveyance by the developer of 75% of  the  units,  or  3
20        years  after  the recording of the declaration, whichever
21        is earlier.  The developer shall give at  least  21  days
22        notice  of  such  meeting  to  elect the first unit owner
23        board of managers and shall provide  to  any  unit  owner
24        within   3  working  days  of  the  request,  the  names,
25        addresses, and weighted vote of each unit owner  entitled
26        to  vote  at  such  meeting.   Any  unit  owner  shall be
27        provided with the same  information  within  10  days  of
28        receipt  of  the request, with respect to each subsequent
29        meeting to elect members of the Board of Managers.
30             (ii)  In the event the developer  does  not  call  a
31        meeting  for  the  purpose  of  election  of the board of
 
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 1        managers within the time provided in this subsection (b),
 2        unit  owners  holding  20%  of  the   interest   in   the
 3        association  may  call a meeting by filing a petition for
 4        such meeting with the developer, after  which  said  unit
 5        owners  shall  have  authority  to  send  notice  of said
 6        meeting to the unit owners and to hold such meeting.
 7        (c)  If the first unit board of managers is  not  elected
 8    at  the  time so established, the developer shall continue in
 9    office for a period of 30 days whereupon  written  notice  of
10    his  resignation  shall  be  sent  to  all of the unit owners
11    entitled to vote at such election.
12        (d)  Within 60 days following the election of  the  first
13    unit  owner board of managers, the developer shall deliver to
14    the board of managers:
15             (1)  All original documents  as  recorded  or  filed
16        pertaining  to  the property, its administration, and the
17        association, such as the declaration,  by-laws,  articles
18        of  incorporation,  other condominium instruments, annual
19        reports, minutes and rules  and  regulations,  contracts,
20        leases,   or   other   agreements  entered  into  by  the
21        Association.  If any original documents are  unavailable,
22        a  copy  may be provided if certified by affidavit of the
23        developer, or an officer or agent of  the  developer,  as
24        being  a complete copy of the actual document recorded as
25        filed.
26             (2)  A detailed accounting by the developer, setting
27        forth the source and nature of receipts and  expenditures
28        in   connection  with  the  management,  maintenance  and
29        operation of the property and  copies  of  all  insurance
30        policies  and  a  list  of  any  loans or advances to the
31        association which are outstanding.
32             (3)  Association funds, which shall have been at all
33        times segregated from any other moneys of the developer.
34             (4)  A schedule of all real  or  personal  property,
 
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 1        equipment  and  fixtures  belonging  to  the association,
 2        including   documents    transferring    the    property,
 3        warranties,  if  any,  for all real and personal property
 4        and equipment, deeds, title insurance policies,  and  all
 5        tax bills.
 6             (5)  A list of all litigation, administrative action
 7        and  arbitrations  involving the association, any notices
 8        of governmental bodies involving actions taken  or  which
 9        may  be taken concerning the association, engineering and
10        architectural drawings and specifications as approved  by
11        any  governmental  authority,  all  other documents filed
12        with any other governmental authority,  all  governmental
13        certificates, correspondence involving enforcement of any
14        association   requirements,   copies   of  any  documents
15        relating to disputes involving unit owners, originals  of
16        all  documents  relating  to  everything  listed  in this
17        subparagraph.
18        (e)  Upon election of  the  first  unit  owner  board  of
19    managers,  any contract, lease, or other agreement made prior
20    to the date of election of the first unit owner board  by  or
21    on  behalf  of unit owners, individually or collectively, the
22    unit owners' association,  the  board  of  managers,  or  the
23    developer  or  its  affiliates  which extends for a period of
24    more than 2 years from the date of  the  election,  shall  be
25    subject  to  cancellation  by  a majority of the votes of the
26    unit owners other  than  the  developer  cast  at  a  special
27    meeting of members called for that purpose during the 180 day
28    period  beginning  on  the  date of the election of the first
29    unit owner board.  At least 60 days prior to  the  expiration
30    of  the  180  day  cancellation period, the board of managers
31    shall send notice to every unit owner, notifying them of this
32    provision, what contracts, leases and  other  agreements  are
33    affected, and the procedure for calling a meeting of the unit
34    owners  for  the  purpose  of  voting  on termination of such
 
SB242 Engrossed             -4-                LRB9101314KSgc
 1    contracts, leases or other agreements.  During  the  180  day
 2    cancellation  period  the other party to the contract, lease,
 3    or other agreement shall also have the right of cancellation.
 4    The cancellation shall be effective  30  days  after  mailing
 5    notice  by  certified  mail, return receipt requested, to the
 6    last known address of the  other  parties  to  the  contract,
 7    lease, or other agreement.
 8        (f)  The statute of limitations for any actions in law or
 9    equity  which the condominium association may bring shall not
10    begin to run until the unit owners have elected a majority of
11    the members of the board of managers.
12        (g)  If  the  developer  fails  to  fully   comply   with
13    subsection (d) within the 60 days provided and fails to fully
14    comply  within 10 days of written demand mailed by registered
15    or certified mail to his or her last known address, the board
16    may bring an action to compel compliance with subsection (d).
17    If the court finds that any of the required  deliveries  were
18    not  made  within  the  required  period,  the board shall be
19    entitled to recover its reasonable attorneys' fees and  costs
20    incurred  from and after the date of expiration of the 10 day
21    demand.
22    (Source: P.A. 89-41, eff. 6-23-95; 89-626, eff. 8-9-96.)

23        (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
24        Sec. 18.5.  Master Associations.
25        (a)  If the declaration, other condominium instrument, or
26    other duly recorded covenants provide that any of the  powers
27    of the unit owners associations are to be exercised by or may
28    be  delegated  to  a  nonprofit corporation or unincorporated
29    association that exercises those or other powers on behalf of
30    one or more condominiums, or for  the  benefit  of  the  unit
31    owners  of  one  or  more  condominiums,  such corporation or
32    association shall be a master association.
33        (b)  There shall be included in  the  declaration,  other
 
SB242 Engrossed             -5-                LRB9101314KSgc
 1    condominium  instruments,  or  other  duly recorded covenants
 2    establishing the powers and duties of the master  association
 3    the provisions set forth in subsections (c) through (h).
 4        In  interpreting  subsections (c) through (h), the courts
 5    should  interpret  these  provisions   so   that   they   are
 6    interpreted consistently with the similar parallel provisions
 7    found in other parts of this Act.
 8        (c)  Meetings and finances.
 9             (1)  Each unit owner of a condominium subject to the
10        authority  of  the  board of the master association shall
11        receive, at least 30 days prior to the  adoption  thereof
12        by  the  board  of  the master association, a copy of the
13        proposed annual budget.
14             (2)  The  board  of  the  master  association  shall
15        annually  supply  to  all  unit  owners  of  condominiums
16        subject to the authority  of  the  board  of  the  master
17        association an itemized accounting of the common expenses
18        for   the  preceding  year  actually  incurred  or  paid,
19        together with  a  tabulation  of  the  amounts  collected
20        pursuant to the budget or assessment, and showing the net
21        excess  or  deficit  of  income  over  expenditures  plus
22        reserves.
23             (3)  Each unit owner of a condominium subject to the
24        authority  of  the  board of the master association shall
25        receive written notice mailed or delivered no  less  than
26        10  and  no more than 30 days prior to any meeting of the
27        board of the master association concerning  the  adoption
28        of  the  proposed  annual  budget  or any increase in the
29        budget, or establishment of an assessment.
30             (4)  Meetings of the board of the master association
31        shall be open to any unit owner in a condominium  subject
32        to  the authority of the board of the master association,
33        except for the portion of any meeting held:
34                  (A)  to  discuss  litigation  when  an   action
 
SB242 Engrossed             -6-                LRB9101314KSgc
 1             against  or  on  behalf  of  the  particular  master
 2             association has been filed and is pending in a court
 3             or administrative tribunal, or when the board of the
 4             master  association  finds  that  such  an action is
 5             probable or imminent,
 6                  (B)  to    consider    information    regarding
 7             appointment, employment or dismissal of an employee,
 8             or
 9                  (C)  to  discuss  violations   of   rules   and
10             regulations  of  the  master  association  or unpaid
11             common expenses owed to the master association.
12        Any vote on these matters shall be taken at a meeting  or
13        portion  thereof  open to any unit owner of a condominium
14        subject to the authority of the master association.
15             Any  unit  owner  may  record  the  proceedings   at
16        meetings required to be open by this Act by tape, film or
17        other means; the board may prescribe reasonable rules and
18        regulations  to govern the right to make such recordings.
19        Notice of meetings shall be mailed or delivered at  least
20        48  hours  prior thereto, unless a written waiver of such
21        notice is signed by the persons entitled to notice before
22        the meeting is convened.  Copies of notices  of  meetings
23        of the board of the master association shall be posted in
24        entranceways,  elevators,  or other conspicuous places in
25        the condominium at least 48 hours prior to the meeting of
26        the board of the master association.  Where there  is  no
27        common  entranceway for 7 or more units, the board of the
28        master association may designate one or more locations in
29        the  proximity  of  these  units  where  the  notices  of
30        meetings shall be posted.
31             (5)  If the declaration  provides  for  election  by
32        unit  owners  of members of the board of directors in the
33        event of a resale of a unit in  the  master  association,
34        the  purchaser  of  a  unit  from a seller other than the
 
SB242 Engrossed             -7-                LRB9101314KSgc
 1        developer  pursuant  to  an  installment   contract   for
 2        purchase shall, during such times as he or she resides in
 3        the  unit,  be  counted  toward  a quorum for purposes of
 4        election of members of the  board  of  directors  at  any
 5        meeting  of  the  unit  owners  called  for  purposes  of
 6        electing  members  of the board, and shall have the right
 7        to vote for the election  of  members  of  the  board  of
 8        directors  and to be elected to and serve on the board of
 9        directors unless the seller expressly retains in  writing
10        any  or  all  of those rights. In no event may the seller
11        and  purchaser  both  be  counted  toward  a  quorum,  be
12        permitted to vote for a particular office, or be  elected
13        and  serve  on  the  board.  Satisfactory evidence of the
14        installment contract  shall  be  made  available  to  the
15        association   or   its  agents.   For  purposes  of  this
16        subsection, "installment contract" shall  have  the  same
17        meaning  as  set  forth in subsection (e) of Section 1 of
18        the Dwelling Unit Installment Contract Act.
19             (6)  The board of the master association shall  have
20        the  authority  to  establish  and  maintain  a system of
21        master metering of public utility services and to collect
22        payments  in  connection  therewith,   subject   to   the
23        requirements  of  the  Tenant  Utility Payment Disclosure
24        Act.
25             (7)  The board of the master association or a common
26        interest community  association  shall  have  the  power,
27        after  notice and an opportunity to be heard, to levy and
28        collect reasonable fines from members for  violations  of
29        the declaration, bylaws, and rules and regulations of the
30        master  association  or  the  common  interest  community
31        association.   Nothing  contained in this subdivision (7)
32        shall give rise to a statutory lien for unpaid fines.
33        (d)  Records.
34             (1)  The  board  of  the  master  association  shall
 
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 1        maintain the following records  of  the  association  and
 2        make  them  available  for  examination  and  copying  at
 3        convenient  hours  of  weekdays  by  any unit owners in a
 4        condominium subject to the  authority  of  the  board  or
 5        their  mortgagees  and  their  duly  authorized agents or
 6        attorneys:
 7                  (i)  Copies of the recorded declaration,  other
 8             condominium   instruments,   other   duly   recorded
 9             covenants and bylaws and any amendments, articles of
10             incorporation  of  the  master  association,  annual
11             reports and any rules and regulations adopted by the
12             master  association or its board shall be available.
13             Prior to the organization of the master association,
14             the developer shall maintain and make available  the
15             records  set  forth  in  this subdivision (d)(1) for
16             examination and copying.
17                  (ii)  Detailed   and   accurate   records    in
18             chronological order of the receipts and expenditures
19             affecting the common areas, specifying and itemizing
20             the  maintenance  and  repair expenses of the common
21             areas and any other expenses incurred, and copies of
22             all contracts, leases, or other  agreements  entered
23             into by the master association, shall be maintained.
24                  (iii)  The  minutes  of  all  meetings  of  the
25             master  association  and  the  board  of  the master
26             association shall be maintained for not less than  7
27             years.
28                  (iv)  Ballots  and  proxies related thereto, if
29             any, for any election held  for  the  board  of  the
30             master  association  and for any other matters voted
31             on by the unit owners shall be  maintained  for  not
32             less than one year.
33                  (v)  Such   other   records   of   the   master
34             association  as  are  available  for  inspection  by
 
SB242 Engrossed             -9-                LRB9101314KSgc
 1             members  of a not-for-profit corporation pursuant to
 2             Section  107.75  of  the  General  Not  For   Profit
 3             Corporation Act of 1986 shall be maintained.
 4                  (vi)  With  respect  to  units  owned by a land
 5             trust, if a trustee designates in writing  a  person
 6             to  cast  votes  on  behalf  of  the unit owner, the
 7             designation  shall  remain   in   effect   until   a
 8             subsequent document is filed with the association.
 9             (2)  Where   a   request   for  records  under  this
10        subsection is made in writing to the board of managers or
11        its agent, failure to provide the requested record or  to
12        respond  within  30  days shall be deemed a denial by the
13        board of directors.
14             (3)  A reasonable fee may be charged by  the  master
15        association or its board for the cost of copying.
16             (4)  If  the  board  of  directors  fails to provide
17        records  properly  requested  under  subdivision   (d)(1)
18        within  the  time  period provided in subdivision (d)(2),
19        the unit owner may seek appropriate relief, including  an
20        award of attorney's fees and costs.
21        (e)  The  board  of  directors  shall  have  standing and
22    capacity to act in a representative capacity in  relation  to
23    matters  involving the common areas of the master association
24    or more than one unit, on behalf of the unit owners as  their
25    interests may appear.
26        (f)  Administration  of property prior to election of the
27    initial board of directors.
28             (1)  Until the election, by the unit owners  or  the
29        boards   of   managers   of  the  underlying  condominium
30        associations, of the initial  board  of  directors  of  a
31        master  association  whose  declaration is recorded on or
32        after August 10, 1990, the same rights,  titles,  powers,
33        privileges,  trusts,  duties  and  obligations  that  are
34        vested  in or imposed upon the board of directors by this
 
SB242 Engrossed             -10-               LRB9101314KSgc
 1        Act or in the declaration or other duly recorded covenant
 2        shall be held and performed by the developer.
 3             (2)  The election of the initial board of  directors
 4        of  a master association whose declaration is recorded on
 5        or after August 10, 1990,  by  the  unit  owners  or  the
 6        boards   of   managers   of  the  underlying  condominium
 7        associations, shall be held not later than 60 days  after
 8        the conveyance by the developer of 75% of the units, or 3
 9        years  after  the recording of the declaration, whichever
10        is earlier.  The developer shall give at  least  21  days
11        notice  of  the  meeting  to  elect  the initial board of
12        directors and shall upon  request  provide  to  any  unit
13        owner,  within  3 working days of the request, the names,
14        addresses, and weighted vote of each unit owner  entitled
15        to  vote  at  the  meeting.   Any  unit  owner shall upon
16        receipt  of  the  request  be  provided  with  the   same
17        information,  within 10 days of the request, with respect
18        to each subsequent meeting to elect members of the  board
19        of directors.
20             (3)  If  the  initial board of directors of a master
21        association whose declaration is  recorded  on  or  after
22        August  10, 1990 is not elected by the unit owners or the
23        members of the underlying condominium  association  board
24        of  managers  at  the  time  established  in  subdivision
25        (f)(2),  the  developer  shall  continue  in office for a
26        period of  30  days,  whereupon  written  notice  of  his
27        resignation  shall  be  sent to all of the unit owners or
28        members of the underlying condominium board  of  managers
29        entitled  to vote at an election for members of the board
30        of directors.
31             (4)  Within 60 days  following  the  election  of  a
32        majority  of  the  board  of  directors,  other  than the
33        developer, by unit owners, the developer shall deliver to
34        the board of directors:
 
SB242 Engrossed             -11-               LRB9101314KSgc
 1                  (i)  All  original  documents  as  recorded  or
 2             filed    pertaining    to    the    property,    its
 3             administration, and the  association,  such  as  the
 4             declaration,   articles   of   incorporation,  other
 5             instruments,  annual  reports,  minutes,  rules  and
 6             regulations,  and  contracts,   leases,   or   other
 7             agreements  entered into by the association.  If any
 8             original documents are unavailable, a  copy  may  be
 9             provided if certified by affidavit of the developer,
10             or  an officer or agent of the developer, as being a
11             complete copy of the  actual  document  recorded  or
12             filed.
13                  (ii)  A  detailed  accounting by the developer,
14             setting forth the source and nature of receipts  and
15             expenditures  in  connection  with  the  management,
16             maintenance and operation of the property, copies of
17             all  insurance  policies, and a list of any loans or
18             advances to the association which are outstanding.
19                  (iii)  Association funds, which shall have been
20             at all times segregated from any other moneys of the
21             developer.
22                  (iv)  A  schedule  of  all  real  or   personal
23             property,  equipment  and  fixtures belonging to the
24             association, including  documents  transferring  the
25             property,  warranties,  if  any,  for  all  real and
26             personal  property  and  equipment,   deeds,   title
27             insurance policies, and all tax bills.
28                  (v)  A  list  of all litigation, administrative
29             action and arbitrations involving  the  association,
30             any notices of governmental bodies involving actions
31             taken   or   which   may  be  taken  concerning  the
32             association, engineering and architectural  drawings
33             and  specifications  as approved by any governmental
34             authority, all other documents filed with any  other
 
SB242 Engrossed             -12-               LRB9101314KSgc
 1             governmental     authority,     all     governmental
 2             certificates,  correspondence  involving enforcement
 3             of  any  association  requirements,  copies  of  any
 4             documents  relating  to  disputes   involving   unit
 5             owners,  and  originals of all documents relating to
 6             everything listed in this subparagraph.
 7                  (vi)  If the developer fails  to  fully  comply
 8             with  this paragraph (4) within the 60 days provided
 9             and fails to fully comply within 10 days of  written
10             demand mailed by registered or certified mail to his
11             or  her  last  known address, the board may bring an
12             action to compel compliance with this paragraph (4).
13             In the action, the developer shall have  the  burden
14             of   proving   that   all   deliveries  required  by
15             subparagraphs (i) through (v) were made  within  the
16             prescribed  period.   If the court finds that any of
17             the required deliveries were  not  made  within  the
18             required  period,  the  board  shall  be entitled to
19             recover its reasonable  attorneys'  fees  and  costs
20             incurred  from  and  after the date of expiration of
21             the 10 day demand.
22             (5)  With respect to any  master  association  whose
23        declaration  is recorded on or after August 10, 1990, any
24        contract, lease, or other agreement  made  prior  to  the
25        election  of  a  majority of the board of directors other
26        than the developer by or on  behalf  of  unit  owners  or
27        underlying  condominium  associations, the association or
28        the board of directors, which extends  for  a  period  of
29        more  than 2 years from the recording of the declaration,
30        shall be subject to cancellation by more than 1/2 of  the
31        votes  of the unit owners, other than the developer, cast
32        at a special meeting of members called for  that  purpose
33        during a period of 90 days prior to the expiration of the
34        2  year period if the board of managers is elected by the
 
SB242 Engrossed             -13-               LRB9101314KSgc
 1        unit owners, otherwise by more than 1/2 of the underlying
 2        condominium board of managers.  At least 60 days prior to
 3        the expiration  of  the  2  year  period,  the  board  of
 4        directors,  or,  if  the  board  is still under developer
 5        control, then the board  of  managers  or  the  developer
 6        shall  send    notice  to  every unit owner or underlying
 7        condominium board of managers,  notifying  them  of  this
 8        provision, of what contracts, leases and other agreements
 9        are  affected, and of the procedure for calling a meeting
10        of the unit  owners  or  for  action  by  the  underlying
11        condominium  board  of managers for the purpose of acting
12        to terminate such contracts, leases or other  agreements.
13        During the 90 day period the other party to the contract,
14        lease,  or  other  agreement shall also have the right of
15        cancellation.
16             (6)  The statute of limitations for any  actions  in
17        law  or  equity  which  the  master association may bring
18        shall  not  begin  to  run  until  the  unit  owners   or
19        underlying  condominium  board of managers have elected a
20        majority of the members of the board of directors.
21        (g)  In the event of any resale of a  unit  in  a  master
22    association  by  a  unit  owner other than the developer, the
23    owner shall obtain from the board of directors and shall make
24    available for inspection to the prospective  purchaser,  upon
25    demand, the following:
26             (1)  A  copy  of  the declaration, other instruments
27        and any rules and regulations.
28             (2)  A statement of any liens, including a statement
29        of the account of the unit setting forth the  amounts  of
30        unpaid assessments and other charges due and owing.
31             (3)  A   statement   of   any  capital  expenditures
32        anticipated by the  association  within  the  current  or
33        succeeding 2 fiscal years.
34             (4)  A  statement  of  the  status and amount of any
 
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 1        reserve for replacement fund and any portion of such fund
 2        earmarked for any  specified  project  by  the  board  of
 3        directors.
 4             (5)  A  copy of the statement of financial condition
 5        of the association for the last  fiscal  year  for  which
 6        such a statement is available.
 7             (6)  A  statement of the status of any pending suits
 8        or judgments in which the association is a party.
 9             (7)  A  statement  setting  forth   what   insurance
10        coverage   is   provided  for  all  unit  owners  by  the
11        association.
12             (8)  A   statement   that   any   improvements    or
13        alterations  made  to the unit, or any part of the common
14        areas assigned thereto, by the prior unit  owner  are  in
15        good   faith  believed  to  be  in  compliance  with  the
16        declaration of the master association.
17        The principal officer of the unit owner's association  or
18    such  other  officer  as  is  specifically  designated  shall
19    furnish  the  above  information  when  requested to do so in
20    writing, within 30 days of receiving the request.
21        A reasonable fee covering the direct  out-of-pocket  cost
22    of  copying  and providing such information may be charged by
23    the association or its board of directors to the unit  seller
24    for providing the information.
25        (h)  Errors and omissions.
26             (1)  If  there  is  an  omission  or  error  in  the
27        declaration   or   other   instrument   of   the   master
28        association, the master association may correct the error
29        or  omission  by an amendment to the declaration or other
30        instrument, as may be required to conform it to this Act,
31        to any other applicable statute, or to  the  declaration.
32        The  amendment  shall be adopted by vote of two-thirds of
33        the members of the board of directors or  by  a  majority
34        vote  of  the  unit  owners  at a meeting called for that
 
SB242 Engrossed             -15-               LRB9101314KSgc
 1        purpose, unless the Act or the declaration of the  master
 2        association specifically provides for greater percentages
 3        or different procedures.
 4             (2)  If, through a scrivener's error, a unit has not
 5        been  designated as owning an appropriate undivided share
 6        of the common areas or does not bear an appropriate share
 7        of the common expenses, or if all of the common  expenses
 8        or all of the common elements in the condominium have not
 9        been  distributed  in  the  declaration,  so that the sum
10        total of the shares  of  common  areas  which  have  been
11        distributed  or the sum total of the shares of the common
12        expenses fail to equal 100%, or if it appears  that  more
13        than  100% of the common elements or common expenses have
14        been distributed, the error may be corrected by operation
15        of  law  by  filing  an  amendment  to  the  declaration,
16        approved by vote of two-thirds  of  the  members  of  the
17        board  of directors or a majority vote of the unit owners
18        at   a   meeting   called   for   that   purpose,   which
19        proportionately adjusts all percentage interests so  that
20        the  total  is  equal  to  100%,  unless  the declaration
21        specifically  provides  for  a  different  procedure   or
22        different  percentage vote by the owners of the units and
23        the owners of mortgages thereon affected by  modification
24        being made in the undivided interest in the common areas,
25        the number of votes in the unit owners association or the
26        liability for common expenses appertaining to the unit.
27             (3)  If  an omission or error or a scrivener's error
28        in the declaration or other instrument  is  corrected  by
29        vote  of  two-thirds  of  the  members  of  the  board of
30        directors  pursuant  to  the  authority  established   in
31        subdivisions (h)(1) or (h)(2) of this Section, the board,
32        upon  written  petition  by  unit  owners with 20% of the
33        votes of the association or resolutions  adopted  by  the
34        board   of   managers   or  board  of  directors  of  the
 
SB242 Engrossed             -16-               LRB9101314KSgc
 1        condominium and common  interest  community  associations
 2        which select 20% of the members of the board of directors
 3        of  the  master  association,  whichever  is  applicable,
 4        received within 30 days of the board action, shall call a
 5        meeting   of  the  unit  owners  or  the  boards  of  the
 6        condominium and common  interest  community  associations
 7        which  select  members  of  the board of directors of the
 8        master association within 30 days of the  filing  of  the
 9        petition   or  receipt  of  the  condominium  and  common
10        interest community association resolution to consider the
11        board action.  Unless a majority of the votes of the unit
12        owners of the association are  cast  at  the  meeting  to
13        reject  the  action,  or  board  of  managers or board of
14        directors of condominium and  common  interest  community
15        associations  which select over 50% of the members of the
16        board of the master association adopt  resolutions  prior
17        to  the  meeting  rejecting  the  action  of the board of
18        directors of  the  master  association,  it  is  ratified
19        whether or not a quorum is present.
20             (4)  The procedures for amendments set forth in this
21        subsection  (h) cannot be used if such an amendment would
22        materially or adversely affect  property  rights  of  the
23        unit  owners  unless  the affected unit owners consent in
24        writing.  This Section does not restrict  the  powers  of
25        the  association  to  otherwise  amend  the  declaration,
26        bylaws,  or other condominium instruments, but authorizes
27        a simple process of amendment requiring a lesser vote for
28        the purpose of correcting defects, errors,  or  omissions
29        when  the  property  rights  of  the  unit owners are not
30        materially or adversely affected.
31             (5)  If  there  is  an  omission  or  error  in  the
32        declaration  or  other  instruments  that  may   not   be
33        corrected   by   an  amendment  procedure  set  forth  in
34        subdivision (h)(1) or (h)(2) of this  Section,  then  the
 
SB242 Engrossed             -17-               LRB9101314KSgc
 1        circuit   court   in  the  county  in  which  the  master
 2        association is located shall have jurisdiction to hear  a
 3        petition  of one or more of the unit owners thereon or of
 4        the association, to correct the error  or  omission,  and
 5        the  action may be a class action.  The court may require
 6        that one or more  methods  of  correcting  the  error  or
 7        omission be submitted to the unit owners to determine the
 8        most  acceptable  correction.   All  unit  owners  in the
 9        association must be joined  as  parties  to  the  action.
10        Service  of  process on owners may be by publication, but
11        the  plaintiff  shall  furnish  all   unit   owners   not
12        personally   served  with  process  with  copies  of  the
13        petition and final judgment of  the  court  by  certified
14        mail,  return  receipt  requested,  at  their  last known
15        address.
16             (6)  Nothing contained  in  this  Section  shall  be
17        construed  to  invalidate  any provision of a declaration
18        authorizing the developer to amend an instrument prior to
19        the latest date on which the initial  membership  meeting
20        of  the  unit  owners must be held, whether or not it has
21        actually  been  held,  to  bring  the   instrument   into
22        compliance  with  the  legal  requirements of the Federal
23        National Mortgage  Association,  the  Federal  Home  Loan
24        Mortgage Corporation, the Federal Housing Administration,
25        the   United  States  Veterans  Administration  or  their
26        respective successors and assigns.
27        (i)  The provisions of subsections (c)  through  (h)  are
28    applicable    to    all   declarations,   other   condominium
29    instruments, and other duly recorded  covenants  establishing
30    the  powers  and  duties  of  the master association recorded
31    under  this  Act.   Any  portion  of  a  declaration,   other
32    condominium  instrument,  or  other  duly  recorded  covenant
33    establishing  the  powers  and duties of a master association
34    which contains  provisions  contrary  to  the  provisions  of
 
SB242 Engrossed             -18-               LRB9101314KSgc
 1    subsection  (c)  through  (h) shall be void as against public
 2    policy and ineffective.  Any declaration,  other  condominium
 3    instrument,  or other duly recorded covenant establishing the
 4    powers and duties of the master association  which  fails  to
 5    contain  the  provisions  required by subsections (c) through
 6    (h)  shall  be  deemed  to  incorporate  such  provisions  by
 7    operation of law.
 8        (j)  The provisions of subsections (c)  through  (h)  are
 9    applicable  to all common interest community associations and
10    their unit owners for common interest community  associations
11    which are subject to the provisions of Section 9-102(a)(8) of
12    the   Code   of   Civil  Procedure.   For  purposes  of  this
13    subsection, the terms "common interest community"  and  "unit
14    owners"  shall  have the same meaning as set forth in Section
15    9-102(c) of the Code of Civil Procedure.
16    (Source: P.A. 89-41, eff. 6-23-95; 90-229, eff. 7-25-97.)

17        Section 99.  Effective date.  This Act takes effect  upon
18    becoming law.

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