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Public Act 102-0162


 

Public Act 0162 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0162
 
SB0636 EnrolledLRB102 11509 LNS 16843 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 Condominium Property Act is amended by
changing Section 18 as follows:
 
    (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. A declaration first submitting
    property to the provisions of this Act, in accordance with
    Section 3 after the effective date of this amendatory Act
    of the 102nd General Assembly, or an amendment to the
    condominium instruments adopted in accordance with Section
    27 after the effective date of this amendatory Act of the
    102nd General Assembly, may provide that a majority of the
    board of managers, or such lesser number as may be
    specified in the declaration, must be comprised of unit
    owners occupying their unit as their primary residence;
    provided that the condominium instruments may not require
    that more than a majority of the board shall be comprised
    of unit owners who occupy their unit as their principal
    residence;
        (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 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 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 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 sales 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 sales contract
    shall be made available to the association or its agents.
    For purposes of this subsection, "installment sales
    contract" shall have the same meaning as set forth in
    Section 5 of the Installment Sales Contract Act and
    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. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17;
99-642, eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff.
1-1-18; 100-863, eff. 8-14-18.)

Effective Date: 1/1/2022