Public Act 100-0292
 
HB0189 EnrolledLRB100 03859 HEP 13864 b

    AN ACT concerning civil law.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Common Interest Community Association Act is
amended by changing Sections 1-20 and 1-45 as follows:
 
    (765 ILCS 160/1-20)
    Sec. 1-20. Amendments to the declaration, bylaws, or
operating agreement.
    (a) The administration of every property shall be governed
by the declaration and bylaws or operating agreement, which may
either be embodied in the declaration or in a separate
instrument, a true copy of which shall be appended to and
recorded with the declaration. No modification or amendment of
the declaration, bylaws, or operating agreement shall be valid
unless the same is set forth in an amendment thereof and such
amendment is duly recorded. An amendment of the declaration,
bylaws, or operating agreement shall be deemed effective upon
recordation, unless the amendment sets forth a different
effective date.
    (b) Unless otherwise provided by this Act, amendments to
community instruments authorized to be recorded shall be
executed and recorded by the president of the board or such
other officer authorized by the common interest community
association or the community instruments.
    (c) If an association that currently permits leasing amends
its declaration, bylaws, or rules and regulations to prohibit
leasing, nothing in this Act or the declarations, bylaws, rules
and regulations of an association shall prohibit a unit owner
incorporated under 26 USC 501(c)(3) which is leasing a unit at
the time of the prohibition from continuing to do so until such
time that the unit owner voluntarily sells the unit; and no
special fine, fee, dues, or penalty shall be assessed against
the unit owner for leasing its unit.
    (d) No action to incorporate a common interest community as
a municipality shall commence until an instrument agreeing to
incorporation has been signed by two-thirds of the members.
    (e) If the 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 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 60
days after the mailing of the request. A request to approve or
consent to an amendment to the community instruments that is
required to be sent to a mortgagee or lienholder of record
shall be sent by certified mail.
(Source: P.A. 99-41, eff. 7-14-15.)
 
    (765 ILCS 160/1-45)
    Sec. 1-45. Finances.
    (a) Each member shall receive through a prescribed delivery
method, at least 30 days but not more than 60 days prior to the
adoption thereof by the board, a copy of the proposed annual
budget together with an indication of which portions are
intended for reserves, capital expenditures or repairs or
payment of real estate taxes.
    (b) The board shall provide all members with a reasonably
detailed summary of the receipts, common expenses, and reserves
for the preceding budget year. The board shall (i) make
available for review to all members an itemized accounting of
the common expenses for the preceding year actually incurred or
paid, together with an indication of which portions were for
reserves, capital expenditures or repairs or payment of real
estate taxes and with a tabulation of the amounts collected
pursuant to the budget or assessment, and showing the net
excess or deficit of income over expenditures plus reserves or
(ii) provide a consolidated annual independent audit report of
the financial status of all fund accounts within the
association.
    (c) If an adopted budget or any separate assessment adopted
by the board would result in the sum of all regular and
separate assessments payable in the current fiscal year
exceeding 115% of the sum of all regular and separate
assessments payable during the preceding fiscal year, the
common interest community association, upon written petition
by members with 20% of the votes of the association delivered
to the board within 14 days of the board action, shall call a
meeting of the members within 30 days of the date of delivery
of the petition to consider the budget or separate assessment;
unless a majority of the total votes of the members are cast at
the meeting to reject the budget or separate assessment, it
shall be deemed ratified.
    (d) If total common expenses exceed the total amount of the
approved and adopted budget, the common interest community
association shall disclose this variance to all its members and
specifically identify the subsequent assessments needed to
offset this variance in future budgets.
    (e) Separate assessments for expenditures relating to
emergencies or mandated by law may be adopted by the board
without being subject to member approval or the provisions of
subsection (c) or (f) of this Section. As used herein,
"emergency" means a danger to or a compromise of the structural
integrity of the common areas or any of the common facilities
of the common interest community. "Emergency" also includes a
danger to the life, health or safety of the membership.
    (f) Assessments for additions and alterations to the common
areas or to association-owned property not included in the
adopted annual budget, shall be separately assessed and are
subject to approval of a simple majority of the total members
at a meeting called for that purpose.
    (g) The board may adopt separate assessments payable over
more than one fiscal year. With respect to multi-year
assessments not governed by subsections (e) and (f) of this
Section, the entire amount of the multi-year assessment shall
be deemed considered and authorized in the first fiscal year in
which the assessment is approved.
    (h) The board of a common interest community association
shall have the authority to establish and maintain a system of
master metering of public utility services to collect payments
in conjunction therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
    (i) An association subject to this Act that consists of 100
or more units shall use generally accepted accounting
principles in fulfilling any accounting obligations under this
Act.
(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;
97-1090, eff. 8-24-12.)
 
    Section 10. The Condominium Property Act is amended by
changing Sections 9, 15, 18, 18.4, 19, 27, and 31 and by adding
Section 18.10 as follows:
 
    (765 ILCS 605/9)  (from Ch. 30, par. 309)
    Sec. 9. Sharing of expenses - Lien for nonpayment.
    (a) All common expenses incurred or accrued prior to the
first conveyance of a unit shall be paid by the developer, and
during this period no common expense assessment shall be
payable to the association. It shall be the duty of each unit
owner including the developer to pay his proportionate share of
the common expenses commencing with the first conveyance. The
proportionate share shall be in the same ratio as his
percentage of ownership in the common elements set forth in the
declaration.
    (b) The condominium instruments may provide that common
expenses for insurance premiums be assessed on a basis
reflecting increased charges for coverage on certain units.
    (c) Budget and reserves.
        (1) The board of managers shall prepare and distribute
    to all unit owners a detailed proposed annual budget,
    setting forth with particularity all anticipated common
    expenses by category as well as all anticipated assessments
    and other income. The initial budget and common expense
    assessment based thereon shall be adopted prior to the
    conveyance of any unit. The budget shall also set forth
    each unit owner's proposed common expense assessment.
        (2) All budgets adopted by a board of managers on or
    after July 1, 1990 shall provide for reasonable reserves
    for capital expenditures and deferred maintenance for
    repair or replacement of the common elements. To determine
    the amount of reserves appropriate for an association, the
    board of managers shall take into consideration the
    following: (i) the repair and replacement cost, and the
    estimated useful life, of the property which the
    association is obligated to maintain, including but not
    limited to structural and mechanical components, surfaces
    of the buildings and common elements, and energy systems
    and equipment; (ii) the current and anticipated return on
    investment of association funds; (iii) any independent
    professional reserve study which the association may
    obtain; (iv) the financial impact on unit owners, and the
    market value of the condominium units, of any assessment
    increase needed to fund reserves; and (v) the ability of
    the association to obtain financing or refinancing.
        (3) Notwithstanding the provisions of this subsection
    (c), an association without a reserve requirement in its
    condominium instruments may elect to waive in whole or in
    part the reserve requirements of this Section by a vote of
    2/3 of the total votes of the association. Any association
    having elected under this paragraph (3) to waive the
    provisions of subsection (c) may by a vote of 2/3 of the
    total votes of the association elect to again be governed
    by the requirements of subsection (c).
        (4) In the event that an association elects to waive
    all or part of the reserve requirements of this Section,
    that fact must be disclosed after the meeting at which the
    waiver occurs by the association in the financial
    statements of the association and, highlighted in bold
    print, in the response to any request of a prospective
    purchaser for the information prescribed under Section
    22.1; and no member of the board of managers or the
    managing agent of the association shall be liable, and no
    cause of action may be brought for damages against these
    parties, for the lack or inadequacy of reserve funds in the
    association budget.
        (5) At the end of an association's fiscal year and
    after the association has approved any end-of-year fiscal
    audit, if applicable, if the fiscal year ended with a
    surplus of funds over actual expenses, including budgeted
    reserve fund contributions, then, to the extent that there
    are not any contrary provisions in the association's
    declaration and bylaws, the board of managers has the
    authority, in its discretion, to dispose of the surplus in
    one or more of the following ways: (i) contribute the
    surplus to the association's reserve fund; (ii) return the
    surplus to the unit owners as a credit against the
    remaining monthly assessments for the current fiscal year;
    (iii) return the surplus to the unit owners in the form of
    a direct payment to the unit owners; or (iv) maintain the
    funds in the operating account, in which case the funds
    shall be applied as a credit when calculating the following
    year's annual budget. If the fiscal year ends in a deficit,
    then, to the extent that there are not any contrary
    provisions in the association's declaration and bylaws,
    the board of managers has the authority, in its discretion,
    to address the deficit by incorporating it into the
    following year's annual budget. If 20% of the unit owners
    of the association deliver a petition objecting to the
    action under this paragraph (5) within 30 days after notice
    to the unit owners of the action, the board of managers
    shall call a meeting of the unit owners within 30 days of
    the date of delivery of the petition. At the meeting, the
    unit owners may vote to select a different option than the
    option selected by the board of managers. Unless a majority
    of the total votes of the unit owners are cast at the
    meeting to reject the board's selection and select a
    different option, the board's decision is ratified.
    (d) (Blank).
    (e) The condominium instruments may provide for the
assessment, in connection with expenditures for the limited
common elements, of only those units to which the limited
common elements are assigned.
    (f) Payment of any assessment shall be in amounts and at
times determined by the board of managers.
    (g) Lien.
        (1) If any unit owner shall fail or refuse to make any
    payment of the common expenses or the amount of any unpaid
    fine when due, the amount thereof together with any
    interest, late charges, reasonable attorney fees incurred
    enforcing the covenants of the condominium instruments,
    rules and regulations of the board of managers, or any
    applicable statute or ordinance, and costs of collections
    shall constitute a lien on the interest of the unit owner
    in the property prior to all other liens and encumbrances,
    recorded or unrecorded, except only (a) taxes, special
    assessments and special taxes theretofore or thereafter
    levied by any political subdivision or municipal
    corporation of this State and other State or federal taxes
    which by law are a lien on the interest of the unit owner
    prior to preexisting recorded encumbrances thereon and (b)
    encumbrances on the interest of the unit owner recorded
    prior to the date of such failure or refusal which by law
    would be a lien thereon prior to subsequently recorded
    encumbrances. Any action brought to extinguish the lien of
    the association shall include the association as a party.
        (2) With respect to encumbrances executed prior to
    August 30, 1984 or encumbrances executed subsequent to
    August 30, 1984 which are neither bonafide first mortgages
    nor trust deeds and which encumbrances contain a statement
    of a mailing address in the State of Illinois where notice
    may be mailed to the encumbrancer thereunder, if and
    whenever and as often as the manager or board of managers
    shall send, by United States certified or registered mail,
    return receipt requested, to any such encumbrancer at the
    mailing address set forth in the recorded encumbrance a
    statement of the amounts and due dates of the unpaid common
    expenses with respect to the encumbered unit, then, unless
    otherwise provided in the declaration or bylaws, the prior
    recorded encumbrance shall be subject to the lien of all
    unpaid common expenses with respect to the unit which
    become due and payable within a period of 90 days after the
    date of mailing of each such notice.
        (3) The purchaser of a condominium unit at a judicial
    foreclosure sale, or a mortgagee who receives title to a
    unit by deed in lieu of foreclosure or judgment by common
    law strict foreclosure or otherwise takes possession
    pursuant to court order under the Illinois Mortgage
    Foreclosure Law, shall have the duty to pay the unit's
    proportionate share of the common expenses for the unit
    assessed from and after the first day of the month after
    the date of the judicial foreclosure sale, delivery of the
    deed in lieu of foreclosure, entry of a judgment in common
    law strict foreclosure, or taking of possession pursuant to
    such court order. Such payment confirms the extinguishment
    of any lien created pursuant to paragraph (1) or (2) of
    this subsection (g) by virtue of the failure or refusal of
    a prior unit owner to make payment of common expenses,
    where the judicial foreclosure sale has been confirmed by
    order of the court, a deed in lieu thereof has been
    accepted by the lender, or a consent judgment has been
    entered by the court.
        (4) The purchaser of a condominium unit at a judicial
    foreclosure sale, other than a mortgagee, who takes
    possession of a condominium unit pursuant to a court order
    or a purchaser who acquires title from a mortgagee shall
    have the duty to pay the proportionate share, if any, of
    the common expenses for the unit which would have become
    due in the absence of any assessment acceleration during
    the 6 months immediately preceding institution of an action
    to enforce the collection of assessments, and which remain
    unpaid by the owner during whose possession the assessments
    accrued. If the outstanding assessments are paid at any
    time during any action to enforce the collection of
    assessments, the purchaser shall have no obligation to pay
    any assessments which accrued before he or she acquired
    title.
        (5) The notice of sale of a condominium unit under
    subsection (c) of Section 15-1507 of the Code of Civil
    Procedure shall state that the purchaser of the unit other
    than a mortgagee shall pay the assessments and the legal
    fees required by subdivisions (g)(1) and (g)(4) of Section
    9 of this Act. The statement of assessment account issued
    by the association to a unit owner under subsection (i) of
    Section 18 of this Act, and the disclosure statement issued
    to a prospective purchaser under Section 22.1 of this Act,
    shall state the amount of the assessments and the legal
    fees, if any, required by subdivisions (g)(1) and (g)(4) of
    Section 9 of this Act.
    (h) A lien for common expenses shall be in favor of the
members of the board of managers and their successors in office
and shall be for the benefit of all other unit owners. Notice
of the lien may be recorded by the board of managers, or if the
developer is the manager or has a majority of seats on the
board of managers and the manager or board of managers fails to
do so, any unit owner may record notice of the lien. Upon the
recording of such notice the lien may be foreclosed by an
action brought in the name of the board of managers in the same
manner as a mortgage of real property.
    (i) Unless otherwise provided in the declaration, the
members of the board of managers and their successors in
office, acting on behalf of the other unit owners, shall have
the power to bid on the interest so foreclosed at the
foreclosure sale, and to acquire and hold, lease, mortgage and
convey it.
    (j) Any encumbrancer may from time to time request in
writing a written statement from the manager or board of
managers setting forth the unpaid common expenses with respect
to the unit covered by his encumbrance. Unless the request is
complied with within 20 days, all unpaid common expenses which
become due prior to the date of the making of such request
shall be subordinate to the lien of the encumbrance. Any
encumbrancer holding a lien on a unit may pay any unpaid common
expenses payable with respect to the unit, and upon payment the
encumbrancer shall have a lien on the unit for the amounts paid
at the same rank as the lien of his encumbrance.
    (k) Nothing in Public Act 83-1271 is intended to change the
lien priorities of any encumbrance created prior to August 30,
1984.
(Source: P.A. 94-1049, eff. 1-1-07.)
 
    (765 ILCS 605/15)  (from Ch. 30, par. 315)
    Sec. 15. Sale of property.
    (a) Unless a greater percentage is provided for in the
declaration or bylaws, and notwithstanding the provisions of
Sections 13 and 14 hereof, a majority of the unit owners where
the property contains 2 units, or not less than 66 2/3% where
the property contains three units, and not less than 75% where
the property contains 4 or more units may, by affirmative vote
at a meeting of unit owners duly called for such purpose, elect
to sell the property. Such action shall be binding upon all
unit owners, and it shall thereupon become the duty of every
unit owner to execute and deliver such instruments and to
perform all acts as in manner and form may be necessary to
effect such sale, provided, however, that any unit owner who
did not vote in favor of such action and who has filed written
objection thereto with the manager or board of managers within
20 days after the date of the meeting at which such sale was
approved shall be entitled to receive from the proceeds of such
sale an amount equivalent to the greater of: (i) the value of
his or her interest, as determined by a fair appraisal, less
the amount of any unpaid assessments or charges due and owing
from such unit owner or (ii) the outstanding balance of any
bona fide debt secured by the objecting unit owner's interest
which was incurred by such unit owner in connection with the
acquisition or refinance of the unit owner's interest, less the
amount of any unpaid assessments or charges due and owing from
such unit owner. The objecting unit owner is also entitled to
receive from the proceeds of a sale under this Section
reimbursement for reasonable relocation costs, determined in
the same manner as under the federal Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970,
as amended from time to time, and as implemented by regulations
promulgated under that Act.
    (b) If there is a disagreement as to the value of the
interest of a unit owner who did not vote in favor of the sale
of the property, that unit owner shall have a right to
designate an expert in appraisal or property valuation to
represent him, in which case, the prospective purchaser of the
property shall designate an expert in appraisal or property
valuation to represent him, and both of these experts shall
mutually designate a third expert in appraisal or property
valuation. The 3 experts shall constitute a panel to determine
by vote of at least 2 of the members of the panel, the value of
that unit owner's interest in the property. The changes made by
this amendatory Act of the 100th General Assembly apply to
sales under this Section that are pending or commenced on and
after the effective date of this amendatory Act of the 100th
General Assembly.
(Source: P.A. 86-1156.)
 
    (765 ILCS 605/18)  (from Ch. 30, par. 318)
    Sec. 18. Contents of bylaws. The bylaws shall provide for
at least the following:
        (a)(1) The election from among the unit owners of a
    board of managers, the number of persons constituting such
    board, and that the terms of at least one-third of the
    members of the board shall expire annually and that all
    members of the board shall be elected at large; if there
    are multiple owners of a single unit, only one of the
    multiple owners shall be eligible to serve as a member of
    the board at any one time;
        (2) the powers and duties of the board;
        (3) the compensation, if any, of the members of the
    board;
        (4) the method of removal from office of members of the
    board;
        (5) that the board may engage the services of a manager
    or managing agent;
        (6) that each unit owner shall receive, at least 25
    days prior to the adoption thereof by the board of
    managers, a copy of the proposed annual budget together
    with an indication of which portions are intended for
    reserves, capital expenditures or repairs or payment of
    real estate taxes;
        (7) that the board of managers shall annually supply to
    all unit owners an itemized accounting of the common
    expenses for the preceding year actually incurred or paid,
    together with an indication of which portions were for
    reserves, capital expenditures or repairs or payment of
    real estate taxes and with a tabulation of the amounts
    collected pursuant to the budget or assessment, and showing
    the net excess or deficit of income over expenditures plus
    reserves;
        (8)(i) that each unit owner shall receive notice, in
    the same manner as is provided in this Act for membership
    meetings, of any meeting of the board of managers
    concerning the adoption of the proposed annual budget and
    regular assessments pursuant thereto or to adopt a separate
    (special) assessment, (ii) that except as provided in
    subsection (iv) below, if an adopted budget or any separate
    assessment adopted by the board would result in the sum of
    all regular and separate assessments payable in the current
    fiscal year exceeding 115% of the sum of all regular and
    separate assessments payable during the preceding fiscal
    year, the board of managers, upon written petition by unit
    owners with 20 percent of the votes of the association
    delivered to the board within 21 14 days of the board
    action, shall call a meeting of the unit owners within 30
    days of the date of delivery of the petition to consider
    the budget or separate assessment; unless a majority of the
    total votes of the unit owners are cast at the meeting to
    reject the budget or separate assessment, it is ratified,
    (iii) that any common expense not set forth in the budget
    or any increase in assessments over the amount adopted in
    the budget shall be separately assessed against all unit
    owners, (iv) that separate assessments for expenditures
    relating to emergencies or mandated by law may be adopted
    by the board of managers without being subject to unit
    owner approval or the provisions of item (ii) above or item
    (v) below. As used herein, "emergency" means an immediate
    danger to the structural integrity of the common elements
    or to the life, health, safety or property of the unit
    owners, (v) that assessments for additions and alterations
    to the common elements or to association-owned property not
    included in the adopted annual budget, shall be separately
    assessed and are subject to approval of two-thirds of the
    total votes of all unit owners, (vi) that the board of
    managers may adopt separate assessments payable over more
    than one fiscal year. With respect to multi-year
    assessments not governed by items (iv) and (v), the entire
    amount of the multi-year assessment shall be deemed
    considered and authorized in the first fiscal year in which
    the assessment is approved;
        (9)(A) that every meeting of the board of managers
    shall be open to any unit owner, except that the board may
    close any portion of a noticed meeting or meet separately
    from a noticed meeting to: (i) discuss litigation when an
    action against or on behalf of the particular association
    has been filed and is pending in a court or administrative
    tribunal, or when the board of managers finds that such an
    action is probable or imminent, (ii) discuss the
    appointment, employment, engagement, or dismissal of an
    employee, independent contractor, agent, or other provider
    of goods and services, (iii) interview a potential
    employee, independent contractor, agent, or other provider
    of goods and services, (iv) discuss violations of rules and
    regulations of the association, (v) discuss a unit owner's
    unpaid share of common expenses, or (vi) consult with the
    association's legal counsel; that any vote on these matters
    shall take place at a meeting of the board of managers or
    portion thereof open to any unit owner;
        (B) that board members may participate in and act at
    any meeting of the board of managers in person, by
    telephonic means, or by use of any acceptable technological
    means whereby all persons participating in the meeting can
    communicate with each other; that participation
    constitutes attendance and presence in person at the
    meeting;
        (C) that any unit owner may record the proceedings at
    meetings of the board of managers or portions thereof
    required to be open by this Act by tape, film or other
    means, and that the board may prescribe reasonable rules
    and regulations to govern the right to make such
    recordings;
        (D) that notice of every meeting of the board of
    managers shall be given to every board member at least 48
    hours prior thereto, unless the board member waives notice
    of the meeting pursuant to subsection (a) of Section 18.8;
    and
        (E) that notice of every meeting of the board of
    managers shall be posted in entranceways, elevators, or
    other conspicuous places in the condominium at least 48
    hours prior to the meeting of the board of managers except
    where there is no common entranceway for 7 or more units,
    the board of managers may designate one or more locations
    in the proximity of these units where the notices of
    meetings shall be posted; that notice of every meeting of
    the board of managers shall also be given at least 48 hours
    prior to the meeting, or such longer notice as this Act may
    separately require, to: (i) each unit owner who has
    provided the association with written authorization to
    conduct business by acceptable technological means, and
    (ii) to the extent that the condominium instruments of an
    association require, to each other unit owner, as required
    by subsection (f) of Section 18.8, by mail or delivery, and
    that no other notice of a meeting of the board of managers
    need be given to any unit owner;
        (10) that the board shall meet at least 4 times
    annually;
        (11) that no member of the board or officer shall be
    elected for a term of more than 2 years, but that officers
    and board members may succeed themselves;
        (12) the designation of an officer to mail and receive
    all notices and execute amendments to condominium
    instruments as provided for in this Act and in the
    condominium instruments;
        (13) the method of filling vacancies on the board which
    shall include authority for the remaining members of the
    board to fill the vacancy by two-thirds vote until the next
    annual meeting of unit owners or for a period terminating
    no later than 30 days following the filing of a petition
    signed by unit owners holding 20% of the votes of the
    association requesting a meeting of the unit owners to fill
    the vacancy for the balance of the term, and that a meeting
    of the unit owners shall be called for purposes of filling
    a vacancy on the board no later than 30 days following the
    filing of a petition signed by unit owners holding 20% of
    the votes of the association requesting such a meeting, and
    the method of filling vacancies among the officers that
    shall include the authority for the members of the board to
    fill the vacancy for the unexpired portion of the term;
        (14) what percentage of the board of managers, if other
    than a majority, shall constitute a quorum;
        (15) provisions concerning notice of board meetings to
    members of the board;
        (16) the board of managers may not enter into a
    contract with a current board member or with a corporation
    or partnership in which a board member or a member of the
    board member's immediate family has 25% or more interest,
    unless notice of intent to enter the contract is given to
    unit owners within 20 days after a decision is made to
    enter into the contract and the unit owners are afforded an
    opportunity by filing a petition, signed by 20% of the unit
    owners, for an election to approve or disapprove the
    contract; such petition shall be filed within 30 20 days
    after such notice and such election shall be held within 30
    days after filing the petition; for purposes of this
    subsection, a board member's immediate family means the
    board member's spouse, parents, and children;
        (17) that the board of managers may disseminate to unit
    owners biographical and background information about
    candidates for election to the board if (i) reasonable
    efforts to identify all candidates are made and all
    candidates are given an opportunity to include
    biographical and background information in the information
    to be disseminated; and (ii) the board does not express a
    preference in favor of any candidate;
        (18) any proxy distributed for board elections by the
    board of managers gives unit owners the opportunity to
    designate any person as the proxy holder, and gives the
    unit owner the opportunity to express a preference for any
    of the known candidates for the board or to write in a
    name;
        (19) that special meetings of the board of managers can
    be called by the president or 25% of the members of the
    board;
        (20) that the board of managers may establish and
    maintain a system of master metering of public utility
    services and collect payments in connection therewith,
    subject to the requirements of the Tenant Utility Payment
    Disclosure Act; and
        (21) that the board may ratify and confirm actions of
    the members of the board taken in response to an emergency,
    as that term is defined in subdivision (a)(8)(iv) of this
    Section; that the board shall give notice to the unit
    owners of: (i) the occurrence of the emergency event within
    7 business days after the emergency event, and (ii) the
    general description of the actions taken to address the
    event within 7 days after the emergency event.
        The intent of the provisions of Public Act 99-472
    adding this paragraph (21) is to empower and support boards
    to act in emergencies.
        (b)(1) What percentage of the unit owners, if other
    than 20%, shall constitute a quorum provided that, for
    condominiums with 20 or more units, the percentage of unit
    owners constituting a quorum shall be 20% unless the unit
    owners holding a majority of the percentage interest in the
    association provide for a higher percentage, provided that
    in voting on amendments to the association's bylaws, a unit
    owner who is in arrears on the unit owner's regular or
    separate assessments for 60 days or more, shall not be
    counted for purposes of determining if a quorum is present,
    but that unit owner retains the right to vote on amendments
    to the association's bylaws;
        (2) that the association shall have one class of
    membership;
        (3) that the members shall hold an annual meeting, one
    of the purposes of which shall be to elect members of the
    board of managers;
        (4) the method of calling meetings of the unit owners;
        (5) that special meetings of the members can be called
    by the president, board of managers, or by 20% of unit
    owners;
        (6) that written notice of any membership meeting shall
    be mailed or delivered giving members no less than 10 and
    no more than 30 days notice of the time, place and purpose
    of such meeting except that notice may be sent, to the
    extent the condominium instruments or rules adopted
    thereunder expressly so provide, by electronic
    transmission consented to by the unit owner to whom the
    notice is given, provided the director and officer or his
    agent certifies in writing to the delivery by electronic
    transmission;
        (7) that voting shall be on a percentage basis, and
    that the percentage vote to which each unit is entitled is
    the percentage interest of the undivided ownership of the
    common elements appurtenant thereto, provided that the
    bylaws may provide for approval by unit owners in
    connection with matters where the requisite approval on a
    percentage basis is not specified in this Act, on the basis
    of one vote per unit;
        (8) that, where there is more than one owner of a unit,
    if only one of the multiple owners is present at a meeting
    of the association, he is entitled to cast all the votes
    allocated to that unit, if more than one of the multiple
    owners are present, the votes allocated to that unit may be
    cast only in accordance with the agreement of a majority in
    interest of the multiple owners, unless the declaration
    expressly provides otherwise, that there is majority
    agreement if any one of the multiple owners cast the votes
    allocated to that unit without protest being made promptly
    to the person presiding over the meeting by any of the
    other owners of the unit;
        (9)(A) except as provided in subparagraph (B) of this
    paragraph (9) in connection with board elections, that a
    unit owner may vote by proxy executed in writing by the
    unit owner or by his duly authorized attorney in fact; that
    the proxy must bear the date of execution and, unless the
    condominium instruments or the written proxy itself
    provide otherwise, is invalid after 11 months from the date
    of its execution; to the extent the condominium instruments
    or rules adopted thereunder expressly so provide, a vote or
    proxy may be submitted by electronic transmission,
    provided that any such electronic transmission shall
    either set forth or be submitted with information from
    which it can be determined that the electronic transmission
    was authorized by the unit owner or the unit owner's proxy;
        (B) that if a rule adopted at least 120 days before a
    board election or the declaration or bylaws provide for
    balloting as set forth in this subsection, unit owners may
    not vote by proxy in board elections, but may vote only (i)
    by submitting an association-issued ballot in person at the
    election meeting or (ii) by submitting an
    association-issued ballot to the association or its
    designated agent by mail or other means of delivery
    specified in the declaration, bylaws, or rule; that the
    ballots shall be mailed or otherwise distributed to unit
    owners not less than 10 and not more than 30 days before
    the election meeting, and the board shall give unit owners
    not less than 21 days' prior written notice of the deadline
    for inclusion of a candidate's name on the ballots; that
    the deadline shall be no more than 7 days before the
    ballots are mailed or otherwise distributed to unit owners;
    that every such ballot must include the names of all
    candidates who have given the board or its authorized agent
    timely written notice of their candidacy and must give the
    person casting the ballot the opportunity to cast votes for
    candidates whose names do not appear on the ballot; that a
    ballot received by the association or its designated agent
    after the close of voting shall not be counted; that a unit
    owner who submits a ballot by mail or other means of
    delivery specified in the declaration, bylaws, or rule may
    request and cast a ballot in person at the election
    meeting, and thereby void any ballot previously submitted
    by that unit owner;
        (B-5) that if a rule adopted at least 120 days before a
    board election or the declaration or bylaws provide for
    balloting as set forth in this subparagraph, unit owners
    may not vote by proxy in board elections, but may vote only
    (i) by submitting an association-issued ballot in person at
    the election meeting; or (ii) by any acceptable
    technological means as defined in Section 2 of this Act;
    instructions regarding the use of electronic means for
    voting shall be distributed to all unit owners not less
    than 10 and not more than 30 days before the election
    meeting, and the board shall give unit owners not less than
    21 days' prior written notice of the deadline for inclusion
    of a candidate's name on the ballots; the deadline shall be
    no more than 7 days before the instructions for voting
    using electronic or acceptable technological means is
    distributed to unit owners; every instruction notice must
    include the names of all candidates who have given the
    board or its authorized agent timely written notice of
    their candidacy and must give the person voting through
    electronic or acceptable technological means the
    opportunity to cast votes for candidates whose names do not
    appear on the ballot; a unit owner who submits a vote using
    electronic or acceptable technological means may request
    and cast a ballot in person at the election meeting,
    thereby voiding any vote previously submitted by that unit
    owner;
        (C) that if a written petition by unit owners with at
    least 20% of the votes of the association is delivered to
    the board within 30 14 days after the board's approval of a
    rule adopted pursuant to subparagraph (B) or subparagraph
    (B-5) of this paragraph (9), the board shall call a meeting
    of the unit owners within 30 days after the date of
    delivery of the petition; that unless a majority of the
    total votes of the unit owners are cast at the meeting to
    reject the rule, the rule is ratified;
        (D) that votes cast by ballot under subparagraph (B) or
    electronic or acceptable technological means under
    subparagraph (B-5) of this paragraph (9) are valid for the
    purpose of establishing a quorum;
        (10) that the association may, upon adoption of the
    appropriate rules by the board of managers, conduct
    elections by secret ballot whereby the voting ballot is
    marked only with the percentage interest for the unit and
    the vote itself, provided that the board further adopt
    rules to verify the status of the unit owner issuing a
    proxy or casting a ballot; and further, that a candidate
    for election to the board of managers or such candidate's
    representative shall have the right to be present at the
    counting of ballots at such election;
        (11) that in the event of a resale of a condominium
    unit the purchaser of a unit from a seller other than the
    developer pursuant to an installment contract for purchase
    shall during such times as he or she resides in the unit be
    counted toward a quorum for purposes of election of members
    of the board of managers at any meeting of the unit owners
    called for purposes of electing members of the board, shall
    have the right to vote for the election of members of the
    board of managers and to be elected to and serve on the
    board of managers unless the seller expressly retains in
    writing any or all of such rights. In no event may the
    seller and purchaser both be counted toward a quorum, be
    permitted to vote for a particular office or be elected and
    serve on the board. Satisfactory evidence of the
    installment contract shall be made available to the
    association or its agents. For purposes of this subsection,
    "installment contract" shall have the same meaning as set
    forth in Section 1(e) of the Dwelling Unit Installment
    Contract Act;
        (12) the method by which matters subject to the
    approval of unit owners set forth in this Act, or in the
    condominium instruments, will be submitted to the unit
    owners at special membership meetings called for such
    purposes; and
        (13) that matters subject to the affirmative vote of
    not less than 2/3 of the votes of unit owners at a meeting
    duly called for that purpose, shall include, but not be
    limited to:
        (i) merger or consolidation of the association;
        (ii) sale, lease, exchange, or other disposition
        (excluding the mortgage or pledge) of all, or
        substantially all of the property and assets of the
        association; and
        (iii) the purchase or sale of land or of units on
        behalf of all unit owners.
        (c) Election of a president from among the board of
    managers, who shall preside over the meetings of the board
    of managers and of the unit owners.
        (d) Election of a secretary from among the board of
    managers, who shall keep the minutes of all meetings of the
    board of managers and of the unit owners and who shall, in
    general, perform all the duties incident to the office of
    secretary.
        (e) Election of a treasurer from among the board of
    managers, who shall keep the financial records and books of
    account.
        (f) Maintenance, repair and replacement of the common
    elements and payments therefor, including the method of
    approving payment vouchers.
        (g) An association with 30 or more units shall obtain
    and maintain fidelity insurance covering persons who
    control or disburse funds of the association for the
    maximum amount of coverage available to protect funds in
    the custody or control of the association plus the
    association reserve fund. All management companies which
    are responsible for the funds held or administered by the
    association shall maintain and furnish to the association a
    fidelity bond for the maximum amount of coverage available
    to protect funds in the custody of the management company
    at any time. The association shall bear the cost of the
    fidelity insurance and fidelity bond, unless otherwise
    provided by contract between the association and a
    management company. The association shall be the direct
    obligee of any such fidelity bond. A management company
    holding reserve funds of an association shall at all times
    maintain a separate account for each association,
    provided, however, that for investment purposes, the Board
    of Managers of an association may authorize a management
    company to maintain the association's reserve funds in a
    single interest bearing account with similar funds of other
    associations. The management company shall at all times
    maintain records identifying all moneys of each
    association in such investment account. The management
    company may hold all operating funds of associations which
    it manages in a single operating account but shall at all
    times maintain records identifying all moneys of each
    association in such operating account. Such operating and
    reserve funds held by the management company for the
    association shall not be subject to attachment by any
    creditor of the management company.
        For the purpose of this subsection, a management
    company shall be defined as a person, partnership,
    corporation, or other legal entity entitled to transact
    business on behalf of others, acting on behalf of or as an
    agent for a unit owner, unit owners or association of unit
    owners for the purpose of carrying out the duties,
    responsibilities, and other obligations necessary for the
    day to day operation and management of any property subject
    to this Act. For purposes of this subsection, the term
    "fiduciary insurance coverage" shall be defined as both a
    fidelity bond and directors and officers liability
    coverage, the fidelity bond in the full amount of
    association funds and association reserves that will be in
    the custody of the association, and the directors and
    officers liability coverage at a level as shall be
    determined to be reasonable by the board of managers, if
    not otherwise established by the declaration or by laws.
        Until one year after September 21, 1985 (the effective
    date of Public Act 84-722), if a condominium association
    has reserves plus assessments in excess of $250,000 and
    cannot reasonably obtain 100% fidelity bond coverage for
    such amount, then it must obtain a fidelity bond coverage
    of $250,000.
        (h) Method of estimating the amount of the annual
    budget, and the manner of assessing and collecting from the
    unit owners their respective shares of such estimated
    expenses, and of any other expenses lawfully agreed upon.
        (i) That upon 10 days notice to the manager or board of
    managers and payment of a reasonable fee, any unit owner
    shall be furnished a statement of his account setting forth
    the amount of any unpaid assessments or other charges due
    and owing from such owner.
        (j) Designation and removal of personnel necessary for
    the maintenance, repair and replacement of the common
    elements.
        (k) Such restrictions on and requirements respecting
    the use and maintenance of the units and the use of the
    common elements, not set forth in the declaration, as are
    designed to prevent unreasonable interference with the use
    of their respective units and of the common elements by the
    several unit owners.
        (l) Method of adopting and of amending administrative
    rules and regulations governing the operation and use of
    the common elements.
        (m) The percentage of votes required to modify or amend
    the bylaws, but each one of the particulars set forth in
    this section shall always be embodied in the bylaws.
        (n)(i) The provisions of this Act, the declaration,
    bylaws, other condominium instruments, and rules and
    regulations that relate to the use of the individual unit
    or the common elements shall be applicable to any person
    leasing a unit and shall be deemed to be incorporated in
    any lease executed or renewed on or after August 30, 1984
    (the effective date of Public Act 83-1271).
        (ii) With regard to any lease entered into subsequent
    to July 1, 1990 (the effective date of Public Act 86-991),
    the unit owner leasing the unit shall deliver a copy of the
    signed lease to the board or if the lease is oral, a
    memorandum of the lease, not later than the date of
    occupancy or 10 days after the lease is signed, whichever
    occurs first. In addition to any other remedies, by filing
    an action jointly against the tenant and the unit owner, an
    association may seek to enjoin a tenant from occupying a
    unit or seek to evict a tenant under the provisions of
    Article IX of the Code of Civil Procedure for failure of
    the lessor-owner to comply with the leasing requirements
    prescribed by this Section or by the declaration, bylaws,
    and rules and regulations. The board of managers may
    proceed directly against a tenant, at law or in equity, or
    under the provisions of Article IX of the Code of Civil
    Procedure, for any other breach by tenant of any covenants,
    rules, regulations or bylaws.
        (o) The association shall have no authority to forbear
    the payment of assessments by any unit owner.
        (p) That when 30% or fewer of the units, by number,
    possess over 50% in the aggregate of the votes in the
    association, any percentage vote of members specified
    herein or in the condominium instruments shall require the
    specified percentage by number of units rather than by
    percentage of interest in the common elements allocated to
    units that would otherwise be applicable and garage units
    or storage units, or both, shall have, in total, no more
    votes than their aggregate percentage of ownership in the
    common elements; this shall mean that if garage units or
    storage units, or both, are to be given a vote, or portion
    of a vote, that the association must add the total number
    of votes cast of garage units, storage units, or both, and
    divide the total by the number of garage units, storage
    units, or both, and multiply by the aggregate percentage of
    ownership of garage units and storage units to determine
    the vote, or portion of a vote, that garage units or
    storage units, or both, have. For purposes of this
    subsection (p), when making a determination of whether 30%
    or fewer of the units, by number, possess over 50% in the
    aggregate of the votes in the association, a unit shall not
    include a garage unit or a storage unit.
        (q) That a unit owner may not assign, delegate,
    transfer, surrender, or avoid the duties,
    responsibilities, and liabilities of a unit owner under
    this Act, the condominium instruments, or the rules and
    regulations of the Association; and that such an attempted
    assignment, delegation, transfer, surrender, or avoidance
    shall be deemed void.
    The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion of
a condominium instrument which contains provisions contrary to
these provisions shall be void as against public policy and
ineffective. Any such instrument which fails to contain the
provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 98-1042, eff. 1-1-15; 99-472, eff. 6-1-16;
99-567, eff. 1-1-17; 99-642, eff. 7-28-16.)
 
    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
    Sec. 18.4. Powers and duties of board of managers. The
board of managers shall exercise for the association all
powers, duties and authority vested in the association by law
or the condominium instruments except for such powers, duties
and authority reserved by law to the members of the
association. The powers and duties of the board of managers
shall include, but shall not be limited to, the following:
        (a) To provide for the operation, care, upkeep,
    maintenance, replacement and improvement of the common
    elements. Nothing in this subsection (a) shall be deemed to
    invalidate any provision in a condominium instrument
    placing limits on expenditures for the common elements,
    provided, that such limits shall not be applicable to
    expenditures for repair, replacement, or restoration of
    existing portions of the common elements. The term "repair,
    replacement or restoration" means expenditures to
    deteriorated or damaged portions of the property related to
    the existing decorating, facilities, or structural or
    mechanical components, interior or exterior surfaces, or
    energy systems and equipment with the functional
    equivalent of the original portions of such areas.
    Replacement of the common elements may result in an
    improvement over the original quality of such elements or
    facilities; provided that, unless the improvement is
    mandated by law or is an emergency as defined in item (iv)
    of subparagraph (8) of paragraph (a) of Section 18, if the
    improvement results in a proposed expenditure exceeding 5%
    of the annual budget, the board of managers, upon written
    petition by unit owners with 20% of the votes of the
    association delivered to the board within 21 14 days of the
    board action to approve the expenditure, shall call a
    meeting of the unit owners within 30 days of the date of
    delivery of the petition to consider the expenditure.
    Unless a majority of the total votes of the unit owners are
    cast at the meeting to reject the expenditure, it is
    ratified.
        (b) To prepare, adopt and distribute the annual budget
    for the property.
        (c) To levy and expend assessments.
        (d) To collect assessments from unit owners.
        (e) To provide for the employment and dismissal of the
    personnel necessary or advisable for the maintenance and
    operation of the common elements.
        (f) To obtain adequate and appropriate kinds of
    insurance.
        (g) To own, convey, encumber, lease, and otherwise deal
    with units conveyed to or purchased by it.
        (h) To adopt and amend rules and regulations covering
    the details of the operation and use of the property, after
    a meeting of the unit owners called for the specific
    purpose of discussing the proposed rules and regulations.
    Notice of the meeting shall contain the full text of the
    proposed rules and regulations, and the meeting shall
    conform to the requirements of Section 18(b) of this Act,
    except that no quorum is required at the meeting of the
    unit owners unless the declaration, bylaws or other
    condominium instrument expressly provides to the contrary.
    However, no rule or regulation may impair any rights
    guaranteed by the First Amendment to the Constitution of
    the United States or Section 4 of Article I of the Illinois
    Constitution including, but not limited to, the free
    exercise of religion, nor may any rules or regulations
    conflict with the provisions of this Act or the condominium
    instruments. No rule or regulation shall prohibit any
    reasonable accommodation for religious practices,
    including the attachment of religiously mandated objects
    to the front-door area of a condominium unit.
        (i) To keep detailed, accurate records of the receipts
    and expenditures affecting the use and operation of the
    property.
        (j) To have access to each unit from time to time as
    may be necessary for the maintenance, repair or replacement
    of any common elements or for making emergency repairs
    necessary to prevent damage to the common elements or to
    other units.
        (k) To pay real property taxes, special assessments,
    and any other special taxes or charges of the State of
    Illinois or of any political subdivision thereof, or other
    lawful taxing or assessing body, which are authorized by
    law to be assessed and levied upon the real property of the
    condominium.
        (l) To impose charges for late payment of a unit
    owner's proportionate share of the common expenses, or any
    other expenses lawfully agreed upon, and after notice and
    an opportunity to be heard, to levy reasonable fines for
    violation of the declaration, by-laws, and rules and
    regulations of the association.
        (m) By a majority vote of the entire board of managers,
    to assign the right of the association to future income
    from common expenses or other sources, and to mortgage or
    pledge substantially all of the remaining assets of the
    association.
        (n) To record the dedication of a portion of the common
    elements to a public body for use as, or in connection
    with, a street or utility where authorized by the unit
    owners under the provisions of Section 14.2.
        (o) To record the granting of an easement for the
    laying of cable television or high speed Internet cable
    where authorized by the unit owners under the provisions of
    Section 14.3; to obtain, if available and determined by the
    board to be in the best interests of the association, cable
    television or bulk high speed Internet service for all of
    the units of the condominium on a bulk identical service
    and equal cost per unit basis; and to assess and recover
    the expense as a common expense and, if so determined by
    the board, to assess each and every unit on the same equal
    cost per unit basis.
        (p) To seek relief on behalf of all unit owners when
    authorized pursuant to subsection (c) of Section 10 from or
    in connection with the assessment or levying of real
    property taxes, special assessments, and any other special
    taxes or charges of the State of Illinois or of any
    political subdivision thereof or of any lawful taxing or
    assessing body.
        (q) To reasonably accommodate the needs of a unit owner
    who is a person with a disability as required by the
    federal Civil Rights Act of 1968, the Human Rights Act and
    any applicable local ordinances in the exercise of its
    powers with respect to the use of common elements or
    approval of modifications in an individual unit.
        (r) To accept service of a notice of claim for purposes
    of the Mechanics Lien Act on behalf of each respective
    member of the Unit Owners' Association with respect to
    improvements performed pursuant to any contract entered
    into by the Board of Managers or any contract entered into
    prior to the recording of the condominium declaration
    pursuant to this Act, for a property containing more than 8
    units, and to distribute the notice to the unit owners
    within 7 days of the acceptance of the service by the Board
    of Managers. The service shall be effective as if each
    individual unit owner had been served individually with
    notice.
        (s) To adopt and amend rules and regulations (l)
    authorizing electronic delivery of notices and other
    communications required or contemplated by this Act to each
    unit owner who provides the association with written
    authorization for electronic delivery and an electronic
    address to which such communications are to be
    electronically transmitted; and (2) authorizing each unit
    owner to designate an electronic address or a U.S. Postal
    Service address, or both, as the unit owner's address on
    any list of members or unit owners which an association is
    required to provide upon request pursuant to any provision
    of this Act or any condominium instrument.
    In the performance of their duties, the officers and
members of the board, whether appointed by the developer or
elected by the unit owners, shall exercise the care required of
a fiduciary of the unit owners.
    The collection of assessments from unit owners by an
association, board of managers or their duly authorized agents
shall not be considered acts constituting a collection agency
for purposes of the Collection Agency Act.
    The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion of
a condominium instrument which contains provisions contrary to
these provisions shall be void as against public policy and
ineffective. Any such instrument that fails to contain the
provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 98-735, eff. 1-1-15; 99-143, eff. 7-27-15;
99-849, eff. 1-1-17.)
 
    (765 ILCS 605/18.10 new)
    Sec. 18.10. Generally accepted accounting principles. An
association subject to this Act that consists of 100 or more
units shall use generally accepted accounting principles in
fulfilling any accounting obligations under this Act.
 
    (765 ILCS 605/19)  (from Ch. 30, par. 319)
    Sec. 19. Records of the association; availability for
examination.
    (a) The board of managers of every association shall keep
and maintain the following records, or true and complete copies
of these records, at the association's principal office:
        (1) the association's declaration, bylaws, and plats
    of survey, and all amendments of these;
        (2) the rules and regulations of the association, if
    any;
        (3) if the association is incorporated as a
    corporation, the articles of incorporation of the
    association and all amendments to the articles of
    incorporation;
        (4) minutes of all meetings of the association and its
    board of managers for the immediately preceding 7 years;
        (5) all current policies of insurance of the
    association;
        (6) all contracts, leases, and other agreements then in
    effect to which the association is a party or under which
    the association or the unit owners have obligations or
    liabilities;
        (7) a current listing of the names, addresses, email
    addresses, telephone numbers, and weighted vote of all
    members entitled to vote;
        (8) ballots and proxies related to ballots for all
    matters voted on by the members of the association during
    the immediately preceding 12 months, including but not
    limited to the election of members of the board of
    managers; and
        (9) the books and records of account for the
    association's current and 10 immediately preceding fiscal
    years, including but not limited to itemized and detailed
    records of all receipts, and expenditures, and accounts.
    (b) Any member of an association shall have the right to
inspect, examine, and make copies of the records described in
subdivisions (1), (2), (3), (4), and (5), (6), and (9) of
subsection (a) of this Section, in person or by agent, at any
reasonable time or times, at the association's principal
office. In order to exercise this right, a member must submit a
written request to the association's board of managers or its
authorized agent, stating with particularity the records
sought to be examined. Failure of an association's board of
managers to make available all records so requested within 10
business 30 days of receipt of the member's written request
shall be deemed a denial.
    Any member who prevails in an enforcement action to compel
examination of records described in subdivisions (1), (2), (3),
(4), and (5), (6), and (9) of subsection (a) of this Section
shall be entitled to recover reasonable attorney's fees and
costs from the association.
    (c) (Blank).
    (d) (Blank).
    (d-5) As used in this Section, "commercial purpose" means
the use of any part of a record or records described in
subdivisions (7) and (8) of subsection (a) of this Section, or
information derived from such records, in any form for sale,
resale, or solicitation or advertisement for sales or services.
    (e) Except as otherwise provided in subsection (g) of this
Section, any member of an association shall have the right to
inspect, examine, and make copies of the records described in
subdivisions (7) and (8) (6), (7), (8), and (9) of subsection
(a) of this Section, in person or by agent, at any reasonable
time or times but only for a proper purpose that relates to the
association, at the association's principal office. In order to
exercise this right, a member must submit a written request, to
the association's board of managers or its authorized agent,
stating with particularity the records sought to be examined.
As a condition for exercising this right, the board of managers
or authorized agent of the association may require the member
to certify in writing that the information contained in the
records obtained by the member will not be used by the member
for any commercial purpose or for any purpose that does not
relate to the association. The board of managers of the
association may impose a fine in accordance with item (l) of
Section 18.4 upon any person who makes a false certification.
and a proper purpose for the request. Subject to the provisions
of subsection (g) of this Section, failure of an association's
board of managers to make available all records so requested
within 10 business 30 business days of receipt of the member's
written request shall be deemed a denial; provided, however,
that the board of managers of an association that has adopted a
secret ballot election process as provided in Section 18 of
this Act shall not be deemed to have denied a member's request
for records described in subdivision (8) of subsection (a) of
this Section if voting ballots, without identifying unit
numbers, are made available to the requesting member within 10
business 30 days of receipt of the member's written request.
    In an action to compel examination of records described in
subdivisions (6), (7), (8), and (9) of subsection (a) of this
Section, the burden of proof is upon the member to establish
that the member's request is based on a proper purpose. Any
member who prevails in an enforcement action to compel
examination of records described in subdivisions (7) or (8)
(6), (7), (8), and (9) of subsection (a) of this Section shall
be entitled to recover reasonable attorney's fees and costs
from the association only if the court finds that the board of
directors acted in bad faith in denying the member's request.
    (f) The actual cost to the association of retrieving and
making requested records available for inspection and
examination under this Section may shall be charged by the
association to the requesting member. If a member requests
copies of records requested under this Section, the actual
costs to the association of reproducing the records may shall
also be charged by the association to the requesting member.
    (g) Notwithstanding the provisions of subsection (e) of
this Section, unless otherwise directed by court order, an
association need not make the following records available for
inspection, examination, or copying by its members:
        (1) documents relating to appointment, employment,
    discipline, or dismissal of association employees;
        (2) documents relating to actions pending against or on
    behalf of the association or its board of managers in a
    court or administrative tribunal;
        (3) documents relating to actions threatened against,
    or likely to be asserted on behalf of, the association or
    its board of managers in a court or administrative
    tribunal;
        (4) documents relating to common expenses or other
    charges owed by a member other than the requesting member;
    and
        (5) documents provided to an association in connection
    with the lease, sale, or other transfer of a unit by a
    member other than the requesting member.
    (h) The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion of
a condominium instrument that contains provisions contrary to
these provisions shall be void as against public policy and
ineffective. Any condominium instrument that fails to contain
the provisions required by this Section shall be deemed to
incorporate the provisions by operation of law.
(Source: P.A. 90-496, eff. 8-18-97; 90-655, eff. 7-30-98.)
 
    (765 ILCS 605/27)  (from Ch. 30, par. 327)
    Sec. 27. Amendments.
    (a) If there is any unit owner other than the developer,
and unless otherwise provided in this Act, the condominium
instruments shall be amended only as follows:
        (i) upon the affirmative vote of 2/3 of those voting or
    upon the majority specified by the condominium
    instruments, provided that in no event shall the
    condominium instruments require more than a three-quarters
    vote of all unit owners; and
        (ii) with the approval of, or notice to, any mortgagees
    or other lienholders of record, if required under the
    provisions of the condominium instruments. If the
    condominium 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 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 60 days after the mailing of the request. A
    request to approve or consent to an amendment to the
    condominium instruments that is required to be sent to a
    mortgagee or lienholder of record shall be sent by
    certified mail.
    (b)(1) If there is an omission, error, or inconsistency in
a condominium instrument, such that a provision of a
condominium instrument does not conform to this Act or to
another applicable statute, the association may correct the
omission, error, or inconsistency to conform the condominium
instrument to this Act or to another applicable statute by an
amendment adopted by vote of two-thirds of the Board of
Managers, without a unit owner vote. A provision in a
condominium instrument requiring or allowing unit owners,
mortgagees, or other lienholders of record to vote to approve
an amendment to a condominium instrument, or for the mortgagees
or other lienholders of record to be given notice of an
amendment to a condominium instrument, is not applicable to an
amendment to the extent that the amendment corrects an
omission, error, or inconsistency to conform the condominium
instrument to this Act or to another applicable statute.
    (2) If through a scrivener's error, a unit has not been
designated as owning an appropriate undivided share of the
common elements or does not bear an appropriate share of the
common expenses or that all the common expenses or all of the
common elements in the condominium have not been distributed in
the declaration, so that the sum total of the shares of common
elements which have been distributed or the sum total of the
shares of the common expenses fail to equal 100%, or if it
appears that more than 100% of the common elements or common
expenses have been distributed, the error may be corrected by
operation of law by filing an amendment to the declaration
approved by vote of two-thirds of the members of the Board of
Managers or a majority vote of the unit owners at a meeting
called for this purpose which proportionately adjusts all
percentage interests so that the total is equal to 100% unless
the condominium instruments specifically provide for a
different procedure or different percentage vote by the owners
of the units and the owners of mortgages thereon affected by
modification being made in the undivided interest in the common
elements, the number of votes in the unit owners association or
the liability for common expenses appertaining to the unit.
    (3) If an omission or error or a scrivener's error in the
declaration, bylaws or other condominium instrument is
corrected by vote of two-thirds of the members of the Board of
Managers pursuant to the authority established in paragraphs
(1) or (2) of this subsection (b) subsections (b)(1) or (b)(2)
of Section 27 of this Act, the Board upon written petition by
unit owners with 20 percent of the votes of the association
filed within 30 days of the Board action shall call a meeting
of the unit owners within 30 days of the filing of the petition
to consider the Board action. Unless a majority of the votes of
the unit owners of the association are cast at the meeting to
reject the action, it is ratified whether or not a quorum is
present.
    (4) The procedures for amendments set forth in this
subsection (b) cannot be used if such an amendment would
materially or adversely affect property rights of the unit
owners unless the affected unit owners consent in writing. This
Section does not restrict the powers of the association to
otherwise amend the declaration, bylaws, or other condominium
instruments, but authorizes a simple process of amendment
requiring a lesser vote for the purpose of correcting defects,
errors, or omissions when the property rights of the unit
owners are not materially or adversely affected.
    (5) If there is an omission or error in the declaration,
bylaws, or other condominium instruments, which may not be
corrected by an amendment procedure set forth in paragraphs (1)
and (2) of this subsection (b) of Section 27 in the declaration
then the Circuit Court in the County in which the condominium
is located shall have jurisdiction to hear a petition of one or
more of the unit owners thereon or of the association, to
correct the error or omission, and the action may be a class
action. The court may require that one or more methods of
correcting the error or omission be submitted to the unit
owners to determine the most acceptable correction. All unit
owners in the association must be joined as parties to the
action. Service of process on owners may be by publication, but
the plaintiff shall furnish all unit owners not personally
served with process with copies of the petition and final
judgment of the court by certified mail return receipt
requested, at their last known address.
    (6) Nothing contained in this Section shall be construed to
invalidate any provision of a condominium instrument
authorizing the developer to amend a condominium instrument
prior to the latest date on which the initial membership
meeting of the unit owners must be held, whether or not nor it
has actually been held, to bring the instrument into compliance
with the legal requirements of the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, the
Federal Housing Administration, the United States Veterans
Administration or their respective successors and assigns.
(Source: P.A. 98-282, eff. 1-1-14; 99-472, eff. 6-1-16; revised
9-1-16.)
 
    (765 ILCS 605/31)  (from Ch. 30, par. 331)
    Sec. 31. Subdivision or combination of units.
    (a) As used in this Section, "combination of any units"
means any 2 or more residential units to be used as a single
unit as shown on the plat or amended plat, which may involve,
without limitation, additional exclusive use of a portion of
the common elements within the building adjacent to the
combined unit (for example, without limitation, the use of a
portion of an adjacent common hallway).
    (b) Unless the condominium instruments expressly prohibit
the subdivision or combination of any units, and subject to
additional limitations provided by the condominium
instruments, the owner or owners may, at their own expense,
subdivide or combine and locate or relocate common elements
affected or required thereby, in accordance with the provisions
of the condominium instruments and the requirements of this
Act. The owner or owners shall make written application to the
board of managers, requesting an amendment to the condominium
instruments, setting forth in the application a proposed
reallocation to the new units of the percentage interest in the
common elements, and setting forth whether the limited common
elements, if any, previously assigned to the unit to be
subdivided should be assigned to each new unit or to fewer than
all of the new units created and requesting, if desired in the
event of a combination of any units, that the new unit be
granted the exclusive right to use as a limited common element,
a portion of the common elements within the building adjacent
to the new unit. If the transaction is approved by a majority
of the board of managers, it shall be effective upon (1)
recording of an amendment to condominium instruments in
accordance with the provisions of Sections 5 and 6 of this Act,
and (2) execution by the owners of the units involved.
    (c) In the event of a combination of any units, the
amendment under subsection (b) may grant the owner of the
combined unit the exclusive right to use, as a limited common
element, a portion of the common elements within the building
adjacent to the new unit. The request for the amendment shall
be granted and the amendment shall grant this exclusive right
to use as a limited common element if the following conditions
are met:
        (1) the common element for which the exclusive right to
    use as a limited common element is sought is not necessary
    or practical for use by the owners of any units other than
    the owner or owners of the combined unit; and
        (2) the owner or owners of the combined unit are
    responsible for any and all costs associated with the
    renovation, modification, or other adaptation performed as
    a result of the granting of the exclusive right to use as a
    limited common element.
    (d) If the combined unit is divided, part of the original
combined unit is sold, and the grant of the exclusive right to
use as a limited common element is no longer necessary,
practical, or appropriate for the use and enjoyment of the
owner or owners of the original combined unit, the board may
terminate the grant of the exclusive right to use as a limited
common element and require that the owner or owners of the
original combined unit restore the common area to its condition
prior to the grant of the exclusive right to use as a limited
common element. If the combined unit is sold without being
divided, the grant of the exclusive right to use as a limited
common element shall apply to the new owner or owners of the
combined unit, who shall assume the rights and responsibilities
of the original owner or owners.
    (e) Under this Section, the exclusive right to use as a
limited common element any portion of the common elements that
is not necessary or practical for use by the owners of any
other units is not a diminution of the ownership interests of
all other unit owners requiring unanimous consent of all unit
owners under subsection (e) of Section 4 of this Act or any
percentage set forth in the condominium instruments.
    (f) Notwithstanding Section 27 of this Act and any other
amendment provisions set forth in the condominium instruments,
an amendment pursuant to this Section is effective if it meets
the requirements set forth in this Section.
(Source: P.A. 90-199, eff. 7-24-97.)