Bill Text: IL HB0220 | 2023-2024 | 103rd General Assembly | Engrossed
Bill Title: Amends the Common Interest Community Association Act. Provides that any association with major shared components or significant infrastructure that has had a reserve study conducted on or after January 1, 2020, shall have an updated reserve study conducted within 5 years after the date the reserve study was conducted and at least every 5 years thereafter. Sets forth requirements for the reserve study. Amends the Condominium Property Act. Provides that any association with major shared components or significant infrastructure that has had a reserve study conducted on or after January 1, 2020, shall have an updated reserve study conducted within 5 years after the date the reserve study was conducted and at least every 5 years thereafter. Sets forth requirements for the reserve study. Makes a conforming change.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [HB0220 Detail]
Download: Illinois-2023-HB0220-Engrossed.html
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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Common Interest Community Association Act | ||||||
5 | is amended by adding Section 1-32 as follows:
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6 | (765 ILCS 160/1-32 new) | ||||||
7 | Sec. 1-32. Reserve study. | ||||||
8 | (a) Any association with major shared components or | ||||||
9 | significant infrastructure that has had a reserve study | ||||||
10 | conducted on or after January 1, 2020 shall have an updated | ||||||
11 | reserve study conducted within 5 years after the date the | ||||||
12 | reserve study was conducted, and at least every 5 years | ||||||
13 | thereafter, for purposes of assessing the condition of and | ||||||
14 | planning for maintenance, repair, and replacement of the | ||||||
15 | common areas. | ||||||
16 | (b) Any association with major shared components or | ||||||
17 | significant infrastructure that has not had a reserve study | ||||||
18 | conducted on or after January 1, 2020, shall require that a | ||||||
19 | reserve study be conducted on or before January 1, 2026, and | ||||||
20 | shall update the study every 5 years for purposes of assessing | ||||||
21 | the condition of and planning for maintenance, repair, and | ||||||
22 | replacement of the common areas. | ||||||
23 | (c) As used in this Section, "reserve study" means an |
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1 | analysis of the reserves required for future major | ||||||
2 | maintenance, repairs, and replacements of the common areas | ||||||
3 | that: | ||||||
4 | (1) identifies each structural, mechanical, | ||||||
5 | electrical, and plumbing component of the common areas and | ||||||
6 | any other components that are the responsibility of the | ||||||
7 | association to maintain, repair, and replace; | ||||||
8 | (2) states the normal useful life and the estimated | ||||||
9 | remaining useful life of each identified component; | ||||||
10 | (3) states the estimated cost of maintenance, repair, | ||||||
11 | or replacement of each identified component; and | ||||||
12 | (4) states the estimated annual reserve amount | ||||||
13 | necessary to accomplish any identified future maintenance, | ||||||
14 | repair, or replacement. | ||||||
15 | (d) As used in this Section, "major shared components or | ||||||
16 | significant infrastructure" means structural, mechanical, | ||||||
17 | electrical, and plumbing components of the common areas and | ||||||
18 | any other components that are the responsibility of the | ||||||
19 | association to maintain, restore, repair, and replace, or | ||||||
20 | infrastructure, including, but not limited to, roads, street | ||||||
21 | lighting, hardscape, landscape, ponds and lakes, water | ||||||
22 | features, pools, and accessory buildings, with an aggregate | ||||||
23 | restoration or replacement cost exceeding $10,000, that are | ||||||
24 | capital expenses as identified in the federal tax code and | ||||||
25 | generally accepted accounting principles.
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1 | Section 10. The Condominium Property Act is amended by | ||||||
2 | changing Section 18.5 and by adding Section 18.12 as follows:
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3 | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5) | ||||||
4 | Sec. 18.5. Master Associations. | ||||||
5 | (a) If the declaration, other condominium instrument, or | ||||||
6 | other duly recorded covenants provide that any of the powers | ||||||
7 | of the unit owners associations are to be exercised by or may | ||||||
8 | be delegated to a nonprofit corporation or unincorporated | ||||||
9 | association that exercises those or other powers on behalf of | ||||||
10 | one or more condominiums, or for the benefit of the unit owners | ||||||
11 | of one or more condominiums, such corporation or association | ||||||
12 | shall be a master association. | ||||||
13 | (b) There shall be included in the declaration, other | ||||||
14 | condominium instruments, or other duly recorded covenants | ||||||
15 | establishing the powers and duties of the master association | ||||||
16 | the provisions set forth in subsections (c) through (h). | ||||||
17 | In interpreting subsections (c) through (h), the courts | ||||||
18 | should interpret these provisions so that they are interpreted | ||||||
19 | consistently with the similar parallel provisions found in | ||||||
20 | other parts of this Act. | ||||||
21 | (c) Meetings and finances. | ||||||
22 | (1) Each unit owner of a condominium subject to the | ||||||
23 | authority of the board of the master association shall | ||||||
24 | receive, at least 30 days prior to the adoption thereof by | ||||||
25 | the board of the master association, a copy of the |
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1 | proposed annual budget. | ||||||
2 | (2) The board of the master association shall annually | ||||||
3 | supply to all unit owners of condominiums subject to the | ||||||
4 | authority of the board of the master association an | ||||||
5 | itemized accounting of the common expenses for the | ||||||
6 | preceding year actually incurred or paid, together with a | ||||||
7 | tabulation of the amounts collected pursuant to the budget | ||||||
8 | or assessment, and showing the net excess or deficit of | ||||||
9 | income over expenditures plus reserves. | ||||||
10 | (3) Each unit owner of a condominium subject to the | ||||||
11 | authority of the board of the master association shall | ||||||
12 | receive written notice mailed or delivered no less than 10 | ||||||
13 | and no more than 30 days prior to any meeting of the board | ||||||
14 | of the master association concerning the adoption of the | ||||||
15 | proposed annual budget or any increase in the budget, or | ||||||
16 | establishment of an assessment. | ||||||
17 | (4) Meetings of the board of the master association | ||||||
18 | shall be open to any unit owner in a condominium subject to | ||||||
19 | the authority of the board of the master association, | ||||||
20 | except for the portion of any meeting held: | ||||||
21 | (A) to discuss litigation when an action against | ||||||
22 | or on behalf of the particular master association has | ||||||
23 | been filed and is pending in a court or administrative | ||||||
24 | tribunal, or when the board of the master association | ||||||
25 | finds that such an action is probable or imminent, | ||||||
26 | (B) to consider information regarding appointment, |
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1 | employment or dismissal of an employee, or | ||||||
2 | (C) to discuss violations of rules and regulations | ||||||
3 | of the master association or unpaid common expenses | ||||||
4 | owed to the master association. | ||||||
5 | Any vote on these matters shall be taken at a meeting or | ||||||
6 | portion thereof open to any unit owner of a condominium | ||||||
7 | subject to the authority of the master association. | ||||||
8 | Any unit owner may record the proceedings at meetings | ||||||
9 | required to be open by this Act by tape, film or other | ||||||
10 | means; the board may prescribe reasonable rules and | ||||||
11 | regulations to govern the right to make such recordings. | ||||||
12 | Notice of meetings shall be mailed or delivered at least | ||||||
13 | 48 hours prior thereto, unless a written waiver of such | ||||||
14 | notice is signed by the persons entitled to notice before | ||||||
15 | the meeting is convened. Copies of notices of meetings of | ||||||
16 | the board of the master association shall be posted in | ||||||
17 | entranceways, elevators, or other conspicuous places in | ||||||
18 | the condominium at least 48 hours prior to the meeting of | ||||||
19 | the board of the master association. Where there is no | ||||||
20 | common entranceway for 7 or more units, the board of the | ||||||
21 | master association may designate one or more locations in | ||||||
22 | the proximity of these units where the notices of meetings | ||||||
23 | shall be posted. | ||||||
24 | (5) If the declaration provides for election by unit | ||||||
25 | owners of members of the board of directors in the event of | ||||||
26 | a resale of a unit in the master association, the |
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1 | purchaser of a unit from a seller other than the developer | ||||||
2 | pursuant to an installment sales contract for purchase | ||||||
3 | shall, during such times as he or she resides in the unit, | ||||||
4 | be counted toward a quorum for purposes of election of | ||||||
5 | members of the board of directors at any meeting of the | ||||||
6 | unit owners called for purposes of electing members of the | ||||||
7 | board, and shall have the right to vote for the election of | ||||||
8 | members of the board of directors and to be elected to and | ||||||
9 | serve on the board of directors unless the seller | ||||||
10 | expressly retains in writing any or all of those rights. | ||||||
11 | In no event may the seller and purchaser both be counted | ||||||
12 | toward a quorum, be permitted to vote for a particular | ||||||
13 | office, or be elected and serve on the board. Satisfactory | ||||||
14 | evidence of the installment sales contract shall be made | ||||||
15 | available to the association or its agents. For purposes | ||||||
16 | of this subsection, "installment sales contract" shall | ||||||
17 | have the same meaning as set forth in Section 5 of the | ||||||
18 | Installment Sales Contract Act and subsection (e) of | ||||||
19 | Section 1 of the Dwelling Unit Installment Contract Act. | ||||||
20 | (6) The board of the master association shall have the | ||||||
21 | authority to establish and maintain a system of master | ||||||
22 | metering of public utility services and to collect | ||||||
23 | payments in connection therewith, subject to the | ||||||
24 | requirements of the Tenant Utility Payment Disclosure Act. | ||||||
25 | (7) The board of the master association or a common | ||||||
26 | interest community association shall have the power, after |
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1 | notice and an opportunity to be heard, to levy and collect | ||||||
2 | reasonable fines from members for violations of the | ||||||
3 | declaration, bylaws, and rules and regulations of the | ||||||
4 | master association or the common interest community | ||||||
5 | association. Nothing contained in this subdivision (7) | ||||||
6 | shall give rise to a statutory lien for unpaid fines. | ||||||
7 | (8) Other than attorney's fees, no fees pertaining to | ||||||
8 | the collection of a unit owner's financial obligation to | ||||||
9 | the Association, including fees charged by a manager or | ||||||
10 | managing agent, shall be added to and deemed a part of an | ||||||
11 | owner's respective share of the common expenses unless: | ||||||
12 | (i) the managing agent fees relate to the costs to collect | ||||||
13 | common expenses for the Association; (ii) the fees are set | ||||||
14 | forth in a contract between the managing agent and the | ||||||
15 | Association; and (iii) the authority to add the management | ||||||
16 | fees to an owner's respective share of the common expenses | ||||||
17 | is specifically stated in the declaration or bylaws of the | ||||||
18 | Association. | ||||||
19 | (d) Records. | ||||||
20 | (1) The board of the master association shall maintain | ||||||
21 | the following records of the association and make them | ||||||
22 | available for examination and copying at convenient hours | ||||||
23 | of weekdays by any unit owners in a condominium subject to | ||||||
24 | the authority of the board or their mortgagees and their | ||||||
25 | duly authorized agents or attorneys: | ||||||
26 | (i) Copies of the recorded declaration, other |
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1 | condominium instruments, other duly recorded covenants | ||||||
2 | and bylaws and any amendments, articles of | ||||||
3 | incorporation of the master association, annual | ||||||
4 | reports and any rules and regulations adopted by the | ||||||
5 | master association or its board shall be available. | ||||||
6 | Prior to the organization of the master association, | ||||||
7 | the developer shall maintain and make available the | ||||||
8 | records set forth in this subdivision (d)(1) for | ||||||
9 | examination and copying. | ||||||
10 | (ii) Detailed and accurate records in | ||||||
11 | chronological order of the receipts and expenditures | ||||||
12 | affecting the common areas, specifying and itemizing | ||||||
13 | the maintenance and repair expenses of the common | ||||||
14 | areas and any other expenses incurred, and copies of | ||||||
15 | all contracts, leases, or other agreements entered | ||||||
16 | into by the master association, shall be maintained. | ||||||
17 | (iii) The minutes of all meetings of the master | ||||||
18 | association and the board of the master association | ||||||
19 | shall be maintained for not less than 7 years. | ||||||
20 | (iv) Ballots and proxies related thereto, if any, | ||||||
21 | for any election held for the board of the master | ||||||
22 | association and for any other matters voted on by the | ||||||
23 | unit owners shall be maintained for not less than one | ||||||
24 | year. | ||||||
25 | (v) Such other records of the master association | ||||||
26 | as are available for inspection by members of a |
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1 | not-for-profit corporation pursuant to Section 107.75 | ||||||
2 | of the General Not For Profit Corporation Act of 1986 | ||||||
3 | shall be maintained. | ||||||
4 | (vi) With respect to units owned by a land trust, | ||||||
5 | if a trustee designates in writing a person to cast | ||||||
6 | votes on behalf of the unit owner, the designation | ||||||
7 | shall remain in effect until a subsequent document is | ||||||
8 | filed with the association. | ||||||
9 | (2) Where a request for records under this subsection | ||||||
10 | is made in writing to the board of managers or its agent, | ||||||
11 | failure to provide the requested record or to respond | ||||||
12 | within 30 days shall be deemed a denial by the board of | ||||||
13 | directors. | ||||||
14 | (3) A reasonable fee may be charged by the master | ||||||
15 | association or its board for the cost of copying. | ||||||
16 | (4) If the board of directors fails to provide records | ||||||
17 | properly requested under subdivision (d)(1) within the | ||||||
18 | time period provided in subdivision (d)(2), the unit owner | ||||||
19 | may seek appropriate relief, including an award of | ||||||
20 | attorney's fees and costs. | ||||||
21 | (e) The board of directors shall have standing and | ||||||
22 | capacity to act in a representative capacity in relation to | ||||||
23 | matters involving the common areas of the master association | ||||||
24 | or more than one unit, on behalf of the unit owners as their | ||||||
25 | interests may appear. | ||||||
26 | (f) Administration of property prior to election of the |
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1 | initial board of directors. | ||||||
2 | (1) Until the election, by the unit owners or the | ||||||
3 | boards of managers of the underlying condominium | ||||||
4 | associations, of the initial board of directors of a | ||||||
5 | master association whose declaration is recorded on or | ||||||
6 | after August 10, 1990, the same rights, titles, powers, | ||||||
7 | privileges, trusts, duties and obligations that are vested | ||||||
8 | in or imposed upon the board of directors by this Act or in | ||||||
9 | the declaration or other duly recorded covenant shall be | ||||||
10 | held and performed by the developer. | ||||||
11 | (2) The election of the initial board of directors of | ||||||
12 | a master association whose declaration is recorded on or | ||||||
13 | after August 10, 1990, by the unit owners or the boards of | ||||||
14 | managers of the underlying condominium associations, shall | ||||||
15 | be held not later than 60 days after the conveyance by the | ||||||
16 | developer of 75% of the units, or 3 years after the | ||||||
17 | recording of the declaration, whichever is earlier. The | ||||||
18 | developer shall give at least 21 days notice of the | ||||||
19 | meeting to elect the initial board of directors and shall | ||||||
20 | upon request provide to any unit owner, within 3 working | ||||||
21 | days of the request, the names, addresses, and weighted | ||||||
22 | vote of each unit owner entitled to vote at the meeting. | ||||||
23 | Any unit owner shall upon receipt of the request be | ||||||
24 | provided with the same information, within 10 days of the | ||||||
25 | request, with respect to each subsequent meeting to elect | ||||||
26 | members of the board of directors. |
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1 | (3) If the initial board of directors of a master | ||||||
2 | association whose declaration is recorded on or after | ||||||
3 | August 10, 1990 is not elected by the unit owners or the | ||||||
4 | members of the underlying condominium association board of | ||||||
5 | managers at the time established in subdivision (f)(2), | ||||||
6 | the developer shall continue in office for a period of 30 | ||||||
7 | days, whereupon written notice of his resignation shall be | ||||||
8 | sent to all of the unit owners or members of the underlying | ||||||
9 | condominium board of managers entitled to vote at an | ||||||
10 | election for members of the board of directors. | ||||||
11 | (4) Within 60 days following the election of a | ||||||
12 | majority of the board of directors, other than the | ||||||
13 | developer, by unit owners, the developer shall deliver to | ||||||
14 | the board of directors: | ||||||
15 | (i) All original documents as recorded or filed | ||||||
16 | pertaining to the property, its administration, and | ||||||
17 | the association, such as the declaration, articles of | ||||||
18 | incorporation, other instruments, annual reports, | ||||||
19 | minutes, rules and regulations, and contracts, leases, | ||||||
20 | or other agreements entered into by the association. | ||||||
21 | If any original documents are unavailable, a copy may | ||||||
22 | be provided if certified by affidavit of the | ||||||
23 | developer, or an officer or agent of the developer, as | ||||||
24 | being a complete copy of the actual document recorded | ||||||
25 | or filed. | ||||||
26 | (ii) A detailed accounting by the developer, |
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1 | setting forth the source and nature of receipts and | ||||||
2 | expenditures in connection with the management, | ||||||
3 | maintenance and operation of the property, copies of | ||||||
4 | all insurance policies, and a list of any loans or | ||||||
5 | advances to the association which are outstanding. | ||||||
6 | (iii) Association funds, which shall have been at | ||||||
7 | all times segregated from any other moneys of the | ||||||
8 | developer. | ||||||
9 | (iv) A schedule of all real or personal property, | ||||||
10 | equipment and fixtures belonging to the association, | ||||||
11 | including documents transferring the property, | ||||||
12 | warranties, if any, for all real and personal property | ||||||
13 | and equipment, deeds, title insurance policies, and | ||||||
14 | all tax bills. | ||||||
15 | (v) A list of all litigation, administrative | ||||||
16 | action and arbitrations involving the association, any | ||||||
17 | notices of governmental bodies involving actions taken | ||||||
18 | or which may be taken concerning the association, | ||||||
19 | engineering and architectural drawings and | ||||||
20 | specifications as approved by any governmental | ||||||
21 | authority, all other documents filed with any other | ||||||
22 | governmental authority, all governmental certificates, | ||||||
23 | correspondence involving enforcement of any | ||||||
24 | association requirements, copies of any documents | ||||||
25 | relating to disputes involving unit owners, and | ||||||
26 | originals of all documents relating to everything |
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1 | listed in this subparagraph. | ||||||
2 | (vi) If the developer fails to fully comply with | ||||||
3 | this paragraph (4) within the 60 days provided and | ||||||
4 | fails to fully comply within 10 days of written demand | ||||||
5 | mailed by registered or certified mail to his or her | ||||||
6 | last known address, the board may bring an action to | ||||||
7 | compel compliance with this paragraph (4). If the | ||||||
8 | court finds that any of the required deliveries were | ||||||
9 | not made within the required period, the board shall | ||||||
10 | be entitled to recover its reasonable attorneys' fees | ||||||
11 | and costs incurred from and after the date of | ||||||
12 | expiration of the 10 day demand. | ||||||
13 | (5) With respect to any master association whose | ||||||
14 | declaration is recorded on or after August 10, 1990, any | ||||||
15 | contract, lease, or other agreement made prior to the | ||||||
16 | election of a majority of the board of directors other | ||||||
17 | than the developer by or on behalf of unit owners or | ||||||
18 | underlying condominium associations, the association or | ||||||
19 | the board of directors, which extends for a period of more | ||||||
20 | than 2 years from the recording of the declaration, shall | ||||||
21 | be subject to cancellation by more than 1/2 of the votes of | ||||||
22 | the unit owners, other than the developer, cast at a | ||||||
23 | special meeting of members called for that purpose during | ||||||
24 | a period of 90 days prior to the expiration of the 2 year | ||||||
25 | period if the board of managers is elected by the unit | ||||||
26 | owners, otherwise by more than 1/2 of the underlying |
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1 | condominium board of managers. At least 60 days prior to | ||||||
2 | the expiration of the 2 year period, the board of | ||||||
3 | directors, or, if the board is still under developer | ||||||
4 | control, then the board of managers or the developer shall | ||||||
5 | send notice to every unit owner or underlying condominium | ||||||
6 | board of managers, notifying them of this provision, of | ||||||
7 | what contracts, leases and other agreements are affected, | ||||||
8 | and of the procedure for calling a meeting of the unit | ||||||
9 | owners or for action by the underlying condominium board | ||||||
10 | of managers for the purpose of acting to terminate such | ||||||
11 | contracts, leases or other agreements. During the 90 day | ||||||
12 | period the other party to the contract, lease, or other | ||||||
13 | agreement shall also have the right of cancellation. | ||||||
14 | (6) The statute of limitations for any actions in law | ||||||
15 | or equity which the master association may bring shall not | ||||||
16 | begin to run until the unit owners or underlying | ||||||
17 | condominium board of managers have elected a majority of | ||||||
18 | the members of the board of directors. | ||||||
19 | (g) In the event of any resale of a unit in a master | ||||||
20 | association by a unit owner other than the developer, the | ||||||
21 | owner shall obtain from the board of directors and shall make | ||||||
22 | available for inspection to the prospective purchaser, upon | ||||||
23 | demand, the following: | ||||||
24 | (1) A copy of the declaration, other instruments and | ||||||
25 | any rules and regulations. | ||||||
26 | (2) A statement of any liens, including a statement of |
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1 | the account of the unit setting forth the amounts of | ||||||
2 | unpaid assessments and other charges due and owing. | ||||||
3 | (3) A statement of any capital expenditures | ||||||
4 | anticipated by the association within the current or | ||||||
5 | succeeding 2 fiscal years. | ||||||
6 | (4) A statement of the status and amount of any | ||||||
7 | reserve for replacement fund and any portion of such fund | ||||||
8 | earmarked for any specified project by the board of | ||||||
9 | directors. | ||||||
10 | (5) A copy of the statement of financial condition of | ||||||
11 | the association for the last fiscal year for which such a | ||||||
12 | statement is available. | ||||||
13 | (6) A statement of the status of any pending suits or | ||||||
14 | judgments in which the association is a party. | ||||||
15 | (7) A statement setting forth what insurance coverage | ||||||
16 | is provided for all unit owners by the association. | ||||||
17 | (8) A statement that any improvements or alterations | ||||||
18 | made to the unit, or any part of the common areas assigned | ||||||
19 | thereto, by the prior unit owner are in good faith | ||||||
20 | believed to be in compliance with the declaration of the | ||||||
21 | master association. | ||||||
22 | The principal officer of the unit owner's association or | ||||||
23 | such other officer as is specifically designated shall furnish | ||||||
24 | the above information when requested to do so in writing, | ||||||
25 | within 30 days of receiving the request. | ||||||
26 | A reasonable fee covering the direct out-of-pocket cost of |
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1 | copying and providing such information may be charged by the | ||||||
2 | association or its board of directors to the unit seller for | ||||||
3 | providing the information. | ||||||
4 | (g-1) The purchaser of a unit of a common interest | ||||||
5 | community at a judicial foreclosure sale, other than a | ||||||
6 | mortgagee, who takes possession of a unit of a common interest | ||||||
7 | community pursuant to a court order or a purchaser who | ||||||
8 | acquires title from a mortgagee shall have the duty to pay the | ||||||
9 | proportionate share, if any, of the common expenses for the | ||||||
10 | unit that would have become due in the absence of any | ||||||
11 | assessment acceleration during the 6 months immediately | ||||||
12 | preceding institution of an action to enforce the collection | ||||||
13 | of assessments and the court costs incurred by the association | ||||||
14 | in an action to enforce the collection that remain unpaid by | ||||||
15 | the owner during whose possession the assessments accrued. If | ||||||
16 | the outstanding assessments and the court costs incurred by | ||||||
17 | the association in an action to enforce the collection are | ||||||
18 | paid at any time during any action to enforce the collection of | ||||||
19 | assessments, the purchaser shall have no obligation to pay any | ||||||
20 | assessments that accrued before he or she acquired title. The | ||||||
21 | notice of sale of a unit of a common interest community under | ||||||
22 | subsection (c) of Section 15-1507 of the Code of Civil | ||||||
23 | Procedure shall state that the purchaser of the unit other | ||||||
24 | than a mortgagee shall pay the assessments and court costs | ||||||
25 | required by this subsection (g-1). | ||||||
26 | (h) Errors and omissions. |
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1 | (1) If there is an omission or error in the | ||||||
2 | declaration or other instrument of the master association, | ||||||
3 | the master association may correct the error or omission | ||||||
4 | by an amendment to the declaration or other instrument, as | ||||||
5 | may be required to conform it to this Act, to any other | ||||||
6 | applicable statute, or to the declaration. The amendment | ||||||
7 | shall be adopted by vote of two-thirds of the members of | ||||||
8 | the board of directors or by a majority vote of the unit | ||||||
9 | owners at a meeting called for that purpose, unless the | ||||||
10 | Act or the declaration of the master association | ||||||
11 | specifically provides for greater percentages or different | ||||||
12 | procedures. | ||||||
13 | (2) If, through a scrivener's error, a unit has not | ||||||
14 | been designated as owning an appropriate undivided share | ||||||
15 | of the common areas or does not bear an appropriate share | ||||||
16 | of the common expenses, or if all of the common expenses or | ||||||
17 | all of the common elements in the condominium have not | ||||||
18 | been distributed in the declaration, so that the sum total | ||||||
19 | of the shares of common areas which have been distributed | ||||||
20 | or the sum total of the shares of the common expenses fail | ||||||
21 | to equal 100%, or if it appears that more than 100% of the | ||||||
22 | common elements or common expenses have been distributed, | ||||||
23 | the error may be corrected by operation of law by filing an | ||||||
24 | amendment to the declaration, approved by vote of | ||||||
25 | two-thirds of the members of the board of directors or a | ||||||
26 | majority vote of the unit owners at a meeting called for |
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1 | that purpose, which proportionately adjusts all percentage | ||||||
2 | interests so that the total is equal to 100%, unless the | ||||||
3 | declaration specifically provides for a different | ||||||
4 | procedure or different percentage vote by the owners of | ||||||
5 | the units and the owners of mortgages thereon affected by | ||||||
6 | modification being made in the undivided interest in the | ||||||
7 | common areas, the number of votes in the unit owners | ||||||
8 | association or the liability for common expenses | ||||||
9 | appertaining to the unit. | ||||||
10 | (3) If an omission or error or a scrivener's error in | ||||||
11 | the declaration or other instrument is corrected by vote | ||||||
12 | of two-thirds of the members of the board of directors | ||||||
13 | pursuant to the authority established in subdivisions | ||||||
14 | (h)(1) or (h)(2) of this Section, the board, upon written | ||||||
15 | petition by unit owners with 20% of the votes of the | ||||||
16 | association or resolutions adopted by the board of | ||||||
17 | managers or board of directors of the condominium and | ||||||
18 | common interest community associations which select 20% of | ||||||
19 | the members of the board of directors of the master | ||||||
20 | association, whichever is applicable, received within 30 | ||||||
21 | days of the board action, shall call a meeting of the unit | ||||||
22 | owners or the boards of the condominium and common | ||||||
23 | interest community associations which select members of | ||||||
24 | the board of directors of the master association within 30 | ||||||
25 | days of the filing of the petition or receipt of the | ||||||
26 | condominium and common interest community association |
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1 | resolution to consider the board action. Unless a majority | ||||||
2 | of the votes of the unit owners of the association are cast | ||||||
3 | at the meeting to reject the action, or board of managers | ||||||
4 | or board of directors of condominium and common interest | ||||||
5 | community associations which select over 50% of the | ||||||
6 | members of the board of the master association adopt | ||||||
7 | resolutions prior to the meeting rejecting the action of | ||||||
8 | the board of directors of the master association, it is | ||||||
9 | ratified whether or not a quorum is present. | ||||||
10 | (4) The procedures for amendments set forth in this | ||||||
11 | subsection (h) cannot be used if such an amendment would | ||||||
12 | materially or adversely affect property rights of the unit | ||||||
13 | owners unless the affected unit owners consent in writing. | ||||||
14 | This Section does not restrict the powers of the | ||||||
15 | association to otherwise amend the declaration, bylaws, or | ||||||
16 | other condominium instruments, but authorizes a simple | ||||||
17 | process of amendment requiring a lesser vote for the | ||||||
18 | purpose of correcting defects, errors, or omissions when | ||||||
19 | the property rights of the unit owners are not materially | ||||||
20 | or adversely affected. | ||||||
21 | (5) If there is an omission or error in the | ||||||
22 | declaration or other instruments that may not be corrected | ||||||
23 | by an amendment procedure set forth in subdivision (h)(1) | ||||||
24 | or (h)(2) of this Section, then the circuit court in the | ||||||
25 | county in which the master association is located shall | ||||||
26 | have jurisdiction to hear a petition of one or more of the |
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1 | unit owners thereon or of the association, to correct the | ||||||
2 | error or omission, and the action may be a class action. | ||||||
3 | The court may require that one or more methods of | ||||||
4 | correcting the error or omission be submitted to the unit | ||||||
5 | owners to determine the most acceptable correction. All | ||||||
6 | unit owners in the association must be joined as parties | ||||||
7 | to the action. Service of process on owners may be by | ||||||
8 | publication, but the plaintiff shall furnish all unit | ||||||
9 | owners not personally served with process with copies of | ||||||
10 | the petition and final judgment of the court by certified | ||||||
11 | mail, return receipt requested, at their last known | ||||||
12 | address. | ||||||
13 | (6) Nothing contained in this Section shall be | ||||||
14 | construed to invalidate any provision of a declaration | ||||||
15 | authorizing the developer to amend an instrument prior to | ||||||
16 | the latest date on which the initial membership meeting of | ||||||
17 | the unit owners must be held, whether or not it has | ||||||
18 | actually been held, to bring the instrument into | ||||||
19 | compliance with the legal requirements of the Federal | ||||||
20 | National Mortgage Association, the Federal Home Loan | ||||||
21 | Mortgage Corporation, the Federal Housing Administration, | ||||||
22 | the United States Veterans Administration or their | ||||||
23 | respective successors and assigns. | ||||||
24 | (i) The provisions of subsections (c) through (h) are | ||||||
25 | applicable to all declarations, other condominium instruments, | ||||||
26 | and other duly recorded covenants establishing the powers and |
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1 | duties of the master association recorded under this Act. Any | ||||||
2 | portion of a declaration, other condominium instrument, or | ||||||
3 | other duly recorded covenant establishing the powers and | ||||||
4 | duties of a master association which contains provisions | ||||||
5 | contrary to the provisions of subsection (c) through (h) shall | ||||||
6 | be void as against public policy and ineffective. Any | ||||||
7 | declaration, other condominium instrument, or other duly | ||||||
8 | recorded covenant establishing the powers and duties of the | ||||||
9 | master association which fails to contain the provisions | ||||||
10 | required by subsections (c) through (h) shall be deemed to | ||||||
11 | incorporate such provisions by operation of law. | ||||||
12 | (j) Reserve study. | ||||||
13 | (1) Any association with major shared components or | ||||||
14 | significant infrastructure that has had a reserve study | ||||||
15 | conducted on or after January 1, 2020 shall have an | ||||||
16 | updated reserve study conducted within 5 years after the | ||||||
17 | date the reserve study was conducted, and at least every 5 | ||||||
18 | years thereafter, for purposes of assessing the condition | ||||||
19 | of and planning for maintenance, repair, and replacement | ||||||
20 | of the common areas. | ||||||
21 | (2) Any association with major shared components or | ||||||
22 | significant infrastructure that has not had a reserve | ||||||
23 | study conducted on or after January 1, 2020, shall require | ||||||
24 | that a reserve study be conducted on or before January 1, | ||||||
25 | 2026, and shall update the study every 5 years for | ||||||
26 | purposes of assessing the condition of and planning for |
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1 | maintenance, repair, and replacement of the common areas. | ||||||
2 | (3) As used in this subsection (j), "reserve study" | ||||||
3 | means an analysis of the reserves required for future | ||||||
4 | major maintenance, repairs, and replacements of the common | ||||||
5 | areas that: | ||||||
6 | (i) identifies each structural, mechanical, | ||||||
7 | electrical, and plumbing component of the common areas | ||||||
8 | and any other components that are the responsibility | ||||||
9 | of the association to maintain, repair, and replace; | ||||||
10 | (ii) states the normal useful life and the | ||||||
11 | estimated remaining useful life of each identified | ||||||
12 | component; | ||||||
13 | (iii) states the estimated cost of maintenance, | ||||||
14 | repair, or replacement of each identified component; | ||||||
15 | and | ||||||
16 | (iv) states the estimated annual reserve amount | ||||||
17 | necessary to accomplish any identified future | ||||||
18 | maintenance, repair, or replacement. | ||||||
19 | (4) As used in this subsection (j), "major shared | ||||||
20 | components or significant infrastructure" means | ||||||
21 | structural, mechanical, electrical, and plumbing | ||||||
22 | components of the common areas and any other components | ||||||
23 | that are the responsibility of the association to | ||||||
24 | maintain, restore, repair, and replace, or infrastructure, | ||||||
25 | including, but not limited to, roads, street lighting, | ||||||
26 | hardscape, landscape, ponds and lakes, water features, |
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1 | pools, and accessory buildings, with an aggregate | ||||||
2 | restoration or replacement cost exceeding $10,000, that | ||||||
3 | are capital expenses as identified in the federal tax code | ||||||
4 | and generally accepted accounting principles (Blank) . | ||||||
5 | (Source: P.A. 100-416, eff. 1-1-18 .)
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6 | (765 ILCS 605/18.12 new) | ||||||
7 | Sec. 18.12. Reserve study. | ||||||
8 | (a) Any association with major shared components or | ||||||
9 | significant infrastructure that has had a reserve study | ||||||
10 | conducted on or after January 1, 2020 shall have an updated | ||||||
11 | reserve study conducted within 5 years after the date the | ||||||
12 | reserve study was conducted, and at least every 5 years | ||||||
13 | thereafter, for purposes of assessing the condition of and | ||||||
14 | planning for maintenance, repair, and replacement of the | ||||||
15 | common elements. | ||||||
16 | (b) Any association with major shared components or | ||||||
17 | significant infrastructure that has not had a reserve study | ||||||
18 | conducted on or after January 1, 2020, shall require that a | ||||||
19 | reserve study be conducted on or before January 1, 2026, and | ||||||
20 | shall update the study every 5 years for purposes of assessing | ||||||
21 | the condition of and planning for maintenance, repair, and | ||||||
22 | replacement of the common elements. | ||||||
23 | (c) As used in this Section, "reserve study" means an | ||||||
24 | analysis of the reserves required for future major | ||||||
25 | maintenance, repairs, and replacements of the common elements |
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