Bill Text: IL HB0274 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Common Interest Community Association Act. Defines a "retirement community" as a community intended and operated: (i) for occupancy by persons 55 years of age or older; and (ii) with at least 80% of the occupied units occupied by at least one person 55 years of age or older. Provides that the real estate taxes on a unit in a retirement community shall be assessed on the unit and paid by the unit owner. Provides that only real estate taxes on a common area may be included in an assessment. Provides that a common interest community shall provide a detailed breakdown of all costs in an association assessment, including a breakdown of real estate tax information. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB0274 Detail]

Download: Illinois-2021-HB0274-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB0274 Introduced , by Rep. Sam Yingling SYNOPSIS AS INTRODUCED:
765 ILCS 160/1-5
765 ILCS 160/1-45
Amends the Common Interest Community Association Act. Defines a "retirement community" as a community intended and operated: (i) for occupancy by persons 55 years of age or older; and (ii) with at least 80% of the occupied units occupied by at least one person 55 years of age or older. Provides that the real estate taxes on a unit in a retirement community shall be assessed on the unit and paid by the unit owner. Provides that only real estate taxes on a common area may be included in an assessment. Provides that a common interest community shall provide a detailed breakdown of all costs in an association assessment, including a breakdown of real estate tax information. Effective immediately.
LRB102 10086 LNS 15406 b
A BILL FOR
HB0274 LRB102 10086 LNS 15406 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 1-5 and 1-45 as follows:
(765 ILCS 160/1-5)
Sec. 1-5. Definitions. As used in this Act, unless the
context otherwise requires:
"Acceptable technological means" includes, without
limitation, electronic transmission over the Internet or other
network, whether by direct connection, intranet, telecopier,
electronic mail, and any generally available technology that,
by rule of the association, is deemed to provide reasonable
security, reliability, identification, and verifiability.
"Association" or "common interest community association"
means the association of all the members of a common interest
community, acting pursuant to bylaws or an operating agreement
through its duly elected board of managers or board of
directors.
"Board" means a common interest community association's
board of managers or board of directors, whichever is
applicable.
"Board member" or "member of the board" means a member of

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the board of managers or the board of directors, whichever is
applicable.
"Board of directors" means, for a common interest
community that has been incorporated as an Illinois
not-for-profit corporation, the group of people elected by the
members of a common interest community as the governing body
to exercise for the members of the common interest community
association all powers, duties, and authority vested in the
board of directors under this Act and the common interest
community association's declaration and bylaws.
"Board of managers" means, for a common interest community
that is an unincorporated association or organized as a
limited liability company, the group of people elected by the
members of a common interest community as the governing body
to exercise for the members of the common interest community
association all powers, duties, and authority vested in the
board of managers under this Act and the common interest
community association's declaration, bylaws, or operating
agreement.
"Building" means all structures, attached or unattached,
containing one or more units.
"Common areas" means the portion of the property other
than a unit.
"Common expenses" means the proposed or actual expenses
affecting the property, including reserves, if any, lawfully
assessed by the common interest community association.

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"Common interest community" means real estate other than a
condominium or cooperative with respect to which any person by
virtue of his or her ownership of a partial interest or a unit
therein is obligated to pay for the maintenance, improvement,
insurance premiums or real estate taxes of common areas
described in a declaration which is administered by an
association. "Common interest community" may include, but not
be limited to, an attached or detached townhome, villa, or
single-family home. A "common interest community" does not
include a master association.
"Community instruments" means all documents and authorized
amendments thereto recorded by a developer or common interest
community association, including, but not limited to, the
declaration, bylaws, operating agreement, plat of survey, and
rules and regulations.
"Declaration" means any duly recorded instruments, however
designated, that have created a common interest community and
any duly recorded amendments to those instruments.
"Developer" means any person who submits property legally
or equitably owned in fee simple by the person to the
provisions of this Act, or any person who offers units legally
or equitably owned in fee simple by the person for sale in the
ordinary course of such person's business, including any
successor to such person's entire interest in the property
other than the purchaser of an individual unit.
"Developer control" means such control at a time prior to

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the election of the board of the common interest community
association by a majority of the members other than the
developer.
"Electronic transmission" means any form of communication,
not directly involving the physical transmission of paper,
that creates a record that may be retained, retrieved, and
reviewed by a recipient and that may be directly reproduced in
paper form by the recipient through an automated process.
"Majority" or "majority of the members" means the owners
of more than 50% in the aggregate in interest of the undivided
ownership of the common elements. Any specified percentage of
the members means such percentage in the aggregate in interest
of such undivided ownership. "Majority" or "majority of the
members of the board of the common interest community
association" means more than 50% of the total number of
persons constituting such board pursuant to the bylaws or
operating agreement. Any specified percentage of the members
of the common interest community association means that
percentage of the total number of persons constituting such
board pursuant to the bylaws or operating agreement.
"Management company" or "community association manager"
means 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 an association for the
purpose of carrying out the duties, responsibilities, and
other obligations necessary for the day to day operation and

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management of any property subject to this Act.
"Meeting of the board" or "board meeting" means any
gathering of a quorum of the members of the board of the common
interest community association held for the purpose of
conducting board business.
"Member" means the person or entity designated as an owner
and entitled to one vote as defined by the community
instruments. The terms "member" and "unit owner" may be used
interchangeably as defined by the community instruments,
except in situations in which a matter of legal title to the
unit is involved or at issue, in which case the term "unit
owner" would be the applicable term used.
"Membership" means the collective group of members
entitled to vote as defined by the community instruments.
"Parcel" means the lot or lots or tract or tracts of land
described in the declaration as part of a common interest
community.
"Person" means a natural individual, corporation,
partnership, trustee, or other legal entity capable of holding
title to real property.
"Plat" means a plat or plats of survey of the parcel and of
all units in the common interest community, which may consist
of a three-dimensional horizontal and vertical delineation of
all such units, structures, easements, and common areas on the
property.
"Prescribed delivery method" means mailing, delivering,

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posting in an association publication that is routinely mailed
to all members, electronic transmission, or any other delivery
method that is approved in writing by the member and
authorized by the community instruments.
"Property" means all the land, property, and space
comprising the parcel, all improvements and structures
erected, constructed or contained therein or thereon,
including any building and all easements, rights, and
appurtenances belonging thereto, and all fixtures and
equipment intended for the mutual use, benefit, or enjoyment
of the members, under the authority or control of a common
interest community association.
"Purchaser" means any person or persons, other than the
developer, who purchase a unit in a bona fide transaction for
value.
"Record" means to record in the office of the recorder of
the county wherein the property is located.
"Reserves" means those sums paid by members which are
separately maintained by the common interest community
association for purposes specified by the declaration and
bylaws of the common interest community association.
"Retirement community" means a community intended and
operated: (i) for occupancy by persons 55 years of age or
older; and (ii) with at least 80% of the occupied units
occupied by at least one person 55 years of age or older.
"Unit" means a part of the property designed and intended

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for any type of independent use.
"Unit owner" means the person or persons whose estates or
interests, individually or collectively, aggregate fee simple
absolute ownership of a unit.
(Source: P.A. 98-1042, eff. 1-1-15; 99-41, eff. 7-14-15;
99-612, eff. 1-1-17.)
(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

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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

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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.
(j) The real estate taxes on a unit in a retirement
community shall be assessed on the unit and paid by the unit
owner. The real estate taxes on a unit in a retirement

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community shall not be included in an assessment. Only real
estate taxes on a common area may be included in an assessment.
(k) A common interest community shall provide a detailed
breakdown of all costs in an association assessment, including
a breakdown of real estate tax information.
(Source: P.A. 100-292, eff. 1-1-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.