Bill Text: IL HB2721 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the Common Interest Community Association Act and the Condominium Property Act. Provides that in the event of any resale of a unit by a member or unit owner other than the developer, the board of directors or managers shall make available for inspection to the prospective purchaser, among other things, a copy of the most recent independent professional reserve study obtained by the association for the property or a statement that the association has not obtained such a study within the last 7 years.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-29 - House Committee Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [HB2721 Detail]

Download: Illinois-2019-HB2721-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2721

Introduced , by Rep. Jennifer Gong-Gershowitz

SYNOPSIS AS INTRODUCED:
765 ILCS 160/1-35
765 ILCS 605/18.5 from Ch. 30, par. 318.5
765 ILCS 605/22.1 from Ch. 30, par. 322.1

Amends the Common Interest Community Association Act and the Condominium Property Act. Provides that in the event of any resale of a unit by a member or unit owner other than the developer, the board of directors or managers shall make available for inspection to the prospective purchaser, among other things, a copy of the most recent independent professional reserve study obtained by the association for the property or a statement that the association has not obtained such a study within the last 7 years.
LRB101 06795 LNS 51822 b

A BILL FOR

HB2721LRB101 06795 LNS 51822 b
1 AN ACT concerning civil law.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Common Interest Community Association Act is
5amended by changing Section 1-35 as follows:
6 (765 ILCS 160/1-35)
7 Sec. 1-35. Member powers, duties, and obligations.
8 (a) The provisions of this Act, the declaration, bylaws,
9other community instruments, and rules and regulations that
10relate to the use of an individual unit or the common areas
11shall be applicable to any person leasing a unit and shall be
12deemed to be incorporated in any lease executed or renewed on
13or after the effective date of this Act. Unless otherwise
14provided in the community instruments, with regard to any lease
15entered into subsequent to the effective date of this Act, the
16unit owner leasing the unit shall deliver a copy of the signed
17lease to the association or if the lease is oral, a memorandum
18of the lease, not later than the date of occupancy or 10 days
19after the lease is signed, whichever occurs first.
20 (b) If there are multiple owners of a single unit, only one
21of the multiple owners shall be eligible to serve as a member
22of the board at any one time, unless the unit owner owns
23another unit independently.

HB2721- 2 -LRB101 06795 LNS 51822 b
1 (c) Two-thirds of the membership may remove a board member
2as a director at a duly called special meeting.
3 (d) In the event of any resale of a unit in a common
4interest community association by a member or unit owner other
5than the developer, the board shall make available for
6inspection to the prospective purchaser, upon demand, the
7following:
8 (1) A copy of the declaration, other instruments, and
9 any rules and regulations.
10 (2) A statement of any liens, including a statement of
11 the account of the unit setting forth the amounts of unpaid
12 assessments and other charges due and owing.
13 (3) A statement of any capital expenditures
14 anticipated by the association within the current or
15 succeeding 2 fiscal years.
16 (4) A statement of the status and amount of any reserve
17 or replacement fund and any other fund specifically
18 designated for association projects, and a copy of the most
19 recent independent professional reserve study, if any,
20 obtained by the association for the property or a statement
21 that the association has not obtained such a study within
22 the last 7 years.
23 (5) A copy of the statement of financial condition of
24 the association for the last fiscal year for which such a
25 statement is available.
26 (6) A statement of the status of any pending suits or

HB2721- 3 -LRB101 06795 LNS 51822 b
1 judgments in which the association is a party.
2 (7) A statement setting forth what insurance coverage
3 is provided for all members or unit owners by the
4 association for common properties.
5 The principal officer of the board or such other officer as
6is specifically designated shall furnish the above information
7within 30 days after receiving a written request for such
8information.
9 A reasonable fee covering the direct out-of-pocket cost of
10copying and providing such information may be charged by the
11association or the board to the unit seller for providing the
12information.
13(Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12;
1498-842, eff. 1-1-15.)
15 Section 10. The Condominium Property Act is amended by
16changing Sections 18.5 and 22.1 as follows:
17 (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
18 Sec. 18.5. Master Associations.
19 (a) If the declaration, other condominium instrument, or
20other duly recorded covenants provide that any of the powers of
21the unit owners associations are to be exercised by or may be
22delegated to a nonprofit corporation or unincorporated
23association that exercises those or other powers on behalf of
24one or more condominiums, or for the benefit of the unit owners

HB2721- 4 -LRB101 06795 LNS 51822 b
1of one or more condominiums, such corporation or association
2shall be a master association.
3 (b) There shall be included in the declaration, other
4condominium instruments, or other duly recorded covenants
5establishing the powers and duties of the master association
6the provisions set forth in subsections (c) through (h).
7 In interpreting subsections (c) through (h), the courts
8should interpret these provisions so that they are interpreted
9consistently with the similar parallel provisions found in
10other parts of this Act.
11 (c) Meetings and finances.
12 (1) Each unit owner of a condominium subject to the
13 authority of the board of the master association shall
14 receive, at least 30 days prior to the adoption thereof by
15 the board of the master association, a copy of the proposed
16 annual budget.
17 (2) The board of the master association shall annually
18 supply to all unit owners of condominiums subject to the
19 authority of the board of the master association an
20 itemized accounting of the common expenses for the
21 preceding year actually incurred or paid, together with a
22 tabulation of the amounts collected pursuant to the budget
23 or assessment, and showing the net excess or deficit of
24 income over expenditures plus reserves.
25 (3) Each unit owner of a condominium subject to the
26 authority of the board of the master association shall

HB2721- 5 -LRB101 06795 LNS 51822 b
1 receive written notice mailed or delivered no less than 10
2 and no more than 30 days prior to any meeting of the board
3 of the master association concerning the adoption of the
4 proposed annual budget or any increase in the budget, or
5 establishment of an assessment.
6 (4) Meetings of the board of the master association
7 shall be open to any unit owner in a condominium subject to
8 the authority of the board of the master association,
9 except for the portion of any meeting held:
10 (A) to discuss litigation when an action against or
11 on behalf of the particular master association has been
12 filed and is pending in a court or administrative
13 tribunal, or when the board of the master association
14 finds that such an action is probable or imminent,
15 (B) to consider information regarding appointment,
16 employment or dismissal of an employee, or
17 (C) to discuss violations of rules and regulations
18 of the master association or unpaid common expenses
19 owed to the master association.
20 Any vote on these matters shall be taken at a meeting or
21 portion thereof open to any unit owner of a condominium
22 subject to the authority of the master association.
23 Any unit owner may record the proceedings at meetings
24 required to be open by this Act by tape, film or other
25 means; the board may prescribe reasonable rules and
26 regulations to govern the right to make such recordings.

HB2721- 6 -LRB101 06795 LNS 51822 b
1 Notice of meetings shall be mailed or delivered at least 48
2 hours prior thereto, unless a written waiver of such notice
3 is signed by the persons entitled to notice before the
4 meeting is convened. Copies of notices of meetings of the
5 board of the master association shall be posted in
6 entranceways, elevators, or other conspicuous places in
7 the condominium at least 48 hours prior to the meeting of
8 the board of the master association. Where there is no
9 common entranceway for 7 or more units, the board of the
10 master association may designate one or more locations in
11 the proximity of these units where the notices of meetings
12 shall be posted.
13 (5) If the declaration provides for election by unit
14 owners of members of the board of directors in the event of
15 a resale of a unit in the master association, the purchaser
16 of a unit from a seller other than the developer pursuant
17 to an installment sales contract for purchase shall, during
18 such times as he or she resides in the unit, be counted
19 toward a quorum for purposes of election of members of the
20 board of directors at any meeting of the unit owners called
21 for purposes of electing members of the board, and shall
22 have the right to vote for the election of members of the
23 board of directors and to be elected to and serve on the
24 board of directors unless the seller expressly retains in
25 writing any or all of those rights. In no event may the
26 seller and purchaser both be counted toward a quorum, be

HB2721- 7 -LRB101 06795 LNS 51822 b
1 permitted to vote for a particular office, or be elected
2 and serve on the board. Satisfactory evidence of the
3 installment sales contract shall be made available to the
4 association or its agents. For purposes of this subsection,
5 "installment sales contract" shall have the same meaning as
6 set forth in Section 5 of the Installment Sales Contract
7 Act and subsection (e) of Section 1 of the Dwelling Unit
8 Installment Contract Act.
9 (6) The board of the master association shall have the
10 authority to establish and maintain a system of master
11 metering of public utility services and to collect payments
12 in connection therewith, subject to the requirements of the
13 Tenant Utility Payment Disclosure Act.
14 (7) The board of the master association or a common
15 interest community association shall have the power, after
16 notice and an opportunity to be heard, to levy and collect
17 reasonable fines from members for violations of the
18 declaration, bylaws, and rules and regulations of the
19 master association or the common interest community
20 association. Nothing contained in this subdivision (7)
21 shall give rise to a statutory lien for unpaid fines.
22 (8) Other than attorney's fees, no fees pertaining to
23 the collection of a unit owner's financial obligation to
24 the Association, including fees charged by a manager or
25 managing agent, shall be added to and deemed a part of an
26 owner's respective share of the common expenses unless: (i)

HB2721- 8 -LRB101 06795 LNS 51822 b
1 the managing agent fees relate to the costs to collect
2 common expenses for the Association; (ii) the fees are set
3 forth in a contract between the managing agent and the
4 Association; and (iii) the authority to add the management
5 fees to an owner's respective share of the common expenses
6 is specifically stated in the declaration or bylaws of the
7 Association.
8 (d) Records.
9 (1) The board of the master association shall maintain
10 the following records of the association and make them
11 available for examination and copying at convenient hours
12 of weekdays by any unit owners in a condominium subject to
13 the authority of the board or their mortgagees and their
14 duly authorized agents or attorneys:
15 (i) Copies of the recorded declaration, other
16 condominium instruments, other duly recorded covenants
17 and bylaws and any amendments, articles of
18 incorporation of the master association, annual
19 reports and any rules and regulations adopted by the
20 master association or its board shall be available.
21 Prior to the organization of the master association,
22 the developer shall maintain and make available the
23 records set forth in this subdivision (d)(1) for
24 examination and copying.
25 (ii) Detailed and accurate records in
26 chronological order of the receipts and expenditures

HB2721- 9 -LRB101 06795 LNS 51822 b
1 affecting the common areas, specifying and itemizing
2 the maintenance and repair expenses of the common areas
3 and any other expenses incurred, and copies of all
4 contracts, leases, or other agreements entered into by
5 the master association, shall be maintained.
6 (iii) The minutes of all meetings of the master
7 association and the board of the master association
8 shall be maintained for not less than 7 years.
9 (iv) Ballots and proxies related thereto, if any,
10 for any election held for the board of the master
11 association and for any other matters voted on by the
12 unit owners shall be maintained for not less than one
13 year.
14 (v) Such other records of the master association as
15 are available for inspection by members of a
16 not-for-profit corporation pursuant to Section 107.75
17 of the General Not For Profit Corporation Act of 1986
18 shall be maintained.
19 (vi) With respect to units owned by a land trust,
20 if a trustee designates in writing a person to cast
21 votes on behalf of the unit owner, the designation
22 shall remain in effect until a subsequent document is
23 filed with the association.
24 (2) Where a request for records under this subsection
25 is made in writing to the board of managers or its agent,
26 failure to provide the requested record or to respond

HB2721- 10 -LRB101 06795 LNS 51822 b
1 within 30 days shall be deemed a denial by the board of
2 directors.
3 (3) A reasonable fee may be charged by the master
4 association or its board for the cost of copying.
5 (4) If the board of directors fails to provide records
6 properly requested under subdivision (d)(1) within the
7 time period provided in subdivision (d)(2), the unit owner
8 may seek appropriate relief, including an award of
9 attorney's fees and costs.
10 (e) The board of directors shall have standing and capacity
11to act in a representative capacity in relation to matters
12involving the common areas of the master association or more
13than one unit, on behalf of the unit owners as their interests
14may appear.
15 (f) Administration of property prior to election of the
16initial board of directors.
17 (1) Until the election, by the unit owners or the
18 boards of managers of the underlying condominium
19 associations, of the initial board of directors of a master
20 association whose declaration is recorded on or after
21 August 10, 1990, the same rights, titles, powers,
22 privileges, trusts, duties and obligations that are vested
23 in or imposed upon the board of directors by this Act or in
24 the declaration or other duly recorded covenant shall be
25 held and performed by the developer.
26 (2) The election of the initial board of directors of a

HB2721- 11 -LRB101 06795 LNS 51822 b
1 master association whose declaration is recorded on or
2 after August 10, 1990, by the unit owners or the boards of
3 managers of the underlying condominium associations, shall
4 be held not later than 60 days after the conveyance by the
5 developer of 75% of the units, or 3 years after the
6 recording of the declaration, whichever is earlier. The
7 developer shall give at least 21 days notice of the meeting
8 to elect the initial board of directors and shall upon
9 request provide to any unit owner, within 3 working days of
10 the request, the names, addresses, and weighted vote of
11 each unit owner entitled to vote at the meeting. Any unit
12 owner shall upon receipt of the request be provided with
13 the same information, within 10 days of the request, with
14 respect to each subsequent meeting to elect members of the
15 board of directors.
16 (3) If the initial board of directors of a master
17 association whose declaration is recorded on or after
18 August 10, 1990 is not elected by the unit owners or the
19 members of the underlying condominium association board of
20 managers at the time established in subdivision (f)(2), the
21 developer shall continue in office for a period of 30 days,
22 whereupon written notice of his resignation shall be sent
23 to all of the unit owners or members of the underlying
24 condominium board of managers entitled to vote at an
25 election for members of the board of directors.
26 (4) Within 60 days following the election of a majority

HB2721- 12 -LRB101 06795 LNS 51822 b
1 of the board of directors, other than the developer, by
2 unit owners, the developer shall deliver to the board of
3 directors:
4 (i) All original documents as recorded or filed
5 pertaining to the property, its administration, and
6 the association, such as the declaration, articles of
7 incorporation, other instruments, annual reports,
8 minutes, rules and regulations, and contracts, leases,
9 or other agreements entered into by the association. If
10 any original documents are unavailable, a copy may be
11 provided if certified by affidavit of the developer, or
12 an officer or agent of the developer, as being a
13 complete copy of the actual document recorded or filed.
14 (ii) A detailed accounting by the developer,
15 setting forth the source and nature of receipts and
16 expenditures in connection with the management,
17 maintenance and operation of the property, copies of
18 all insurance policies, and a list of any loans or
19 advances to the association which are outstanding.
20 (iii) Association funds, which shall have been at
21 all times segregated from any other moneys of the
22 developer.
23 (iv) A schedule of all real or personal property,
24 equipment and fixtures belonging to the association,
25 including documents transferring the property,
26 warranties, if any, for all real and personal property

HB2721- 13 -LRB101 06795 LNS 51822 b
1 and equipment, deeds, title insurance policies, and
2 all tax bills.
3 (v) A list of all litigation, administrative
4 action and arbitrations involving the association, any
5 notices of governmental bodies involving actions taken
6 or which may be taken concerning the association,
7 engineering and architectural drawings and
8 specifications as approved by any governmental
9 authority, all other documents filed with any other
10 governmental authority, all governmental certificates,
11 correspondence involving enforcement of any
12 association requirements, copies of any documents
13 relating to disputes involving unit owners, and
14 originals of all documents relating to everything
15 listed in this subparagraph.
16 (vi) If the developer fails to fully comply with
17 this paragraph (4) within the 60 days provided and
18 fails to fully comply within 10 days of written demand
19 mailed by registered or certified mail to his or her
20 last known address, the board may bring an action to
21 compel compliance with this paragraph (4). If the court
22 finds that any of the required deliveries were not made
23 within the required period, the board shall be entitled
24 to recover its reasonable attorneys' fees and costs
25 incurred from and after the date of expiration of the
26 10 day demand.

HB2721- 14 -LRB101 06795 LNS 51822 b
1 (5) With respect to any master association whose
2 declaration is recorded on or after August 10, 1990, any
3 contract, lease, or other agreement made prior to the
4 election of a majority of the board of directors other than
5 the developer by or on behalf of unit owners or underlying
6 condominium associations, the association or the board of
7 directors, which extends for a period of more than 2 years
8 from the recording of the declaration, shall be subject to
9 cancellation by more than 1/2 of the votes of the unit
10 owners, other than the developer, cast at a special meeting
11 of members called for that purpose during a period of 90
12 days prior to the expiration of the 2 year period if the
13 board of managers is elected by the unit owners, otherwise
14 by more than 1/2 of the underlying condominium board of
15 managers. At least 60 days prior to the expiration of the 2
16 year period, the board of directors, or, if the board is
17 still under developer control, then the board of managers
18 or the developer shall send notice to every unit owner or
19 underlying condominium board of managers, notifying them
20 of this provision, of what contracts, leases and other
21 agreements are affected, and of the procedure for calling a
22 meeting of the unit owners or for action by the underlying
23 condominium board of managers for the purpose of acting to
24 terminate such contracts, leases or other agreements.
25 During the 90 day period the other party to the contract,
26 lease, or other agreement shall also have the right of

HB2721- 15 -LRB101 06795 LNS 51822 b
1 cancellation.
2 (6) The statute of limitations for any actions in law
3 or equity which the master association may bring shall not
4 begin to run until the unit owners or underlying
5 condominium board of managers have elected a majority of
6 the members of the board of directors.
7 (g) In the event of any resale of a unit in a master
8association by a unit owner other than the developer, the owner
9shall obtain from the board of directors and shall make
10available for inspection to the prospective purchaser, upon
11demand, the following:
12 (1) A copy of the declaration, other instruments and
13 any rules and regulations.
14 (2) A statement of any liens, including a statement of
15 the account of the unit setting forth the amounts of unpaid
16 assessments and other charges due and owing.
17 (3) A statement of any capital expenditures
18 anticipated by the association within the current or
19 succeeding 2 fiscal years.
20 (4) A statement of the status and amount of any reserve
21 for replacement fund and any portion of such fund earmarked
22 for any specified project by the board of directors, and a
23 copy of the most recent independent professional reserve
24 study, if any, obtained by the association for the property
25 or a statement that the association has not obtained such a
26 study within the last 7 years.

HB2721- 16 -LRB101 06795 LNS 51822 b
1 (5) A copy of the statement of financial condition of
2 the association for the last fiscal year for which such a
3 statement is available.
4 (6) A statement of the status of any pending suits or
5 judgments in which the association is a party.
6 (7) A statement setting forth what insurance coverage
7 is provided for all unit owners by the association.
8 (8) A statement that any improvements or alterations
9 made to the unit, or any part of the common areas assigned
10 thereto, by the prior unit owner are in good faith believed
11 to be in compliance with the declaration of the master
12 association.
13 The principal officer of the unit owner's association or
14such other officer as is specifically designated shall furnish
15the above information when requested to do so in writing,
16within 30 days of receiving the request.
17 A reasonable fee covering the direct out-of-pocket cost of
18copying and providing such information may be charged by the
19association or its board of directors to the unit seller for
20providing the information.
21 (g-1) The purchaser of a unit of a common interest
22community at a judicial foreclosure sale, other than a
23mortgagee, who takes possession of a unit of a common interest
24community pursuant to a court order or a purchaser who acquires
25title from a mortgagee shall have the duty to pay the
26proportionate share, if any, of the common expenses for the

HB2721- 17 -LRB101 06795 LNS 51822 b
1unit that would have become due in the absence of any
2assessment acceleration during the 6 months immediately
3preceding institution of an action to enforce the collection of
4assessments and the court costs incurred by the association in
5an action to enforce the collection that remain unpaid by the
6owner during whose possession the assessments accrued. If the
7outstanding assessments and the court costs incurred by the
8association in an action to enforce the collection are paid at
9any time during any action to enforce the collection of
10assessments, the purchaser shall have no obligation to pay any
11assessments that accrued before he or she acquired title. The
12notice of sale of a unit of a common interest community under
13subsection (c) of Section 15-1507 of the Code of Civil
14Procedure shall state that the purchaser of the unit other than
15a mortgagee shall pay the assessments and court costs required
16by this subsection (g-1).
17 (h) Errors and omissions.
18 (1) If there is an omission or error in the declaration
19 or other instrument of the master association, the master
20 association may correct the error or omission by an
21 amendment to the declaration or other instrument, as may be
22 required to conform it to this Act, to any other applicable
23 statute, or to the declaration. The amendment shall be
24 adopted by vote of two-thirds of the members of the board
25 of directors or by a majority vote of the unit owners at a
26 meeting called for that purpose, unless the Act or the

HB2721- 18 -LRB101 06795 LNS 51822 b
1 declaration of the master association specifically
2 provides for greater percentages or different procedures.
3 (2) If, through a scrivener's error, a unit has not
4 been designated as owning an appropriate undivided share of
5 the common areas or does not bear an appropriate share of
6 the common expenses, or if all of the common expenses or
7 all of the common elements in the condominium have not been
8 distributed in the declaration, so that the sum total of
9 the shares of common areas which have been distributed or
10 the sum total of the shares of the common expenses fail to
11 equal 100%, or if it appears that more than 100% of the
12 common elements or common expenses have been distributed,
13 the error may be corrected by operation of law by filing an
14 amendment to the declaration, approved by vote of
15 two-thirds of the members of the board of directors or a
16 majority vote of the unit owners at a meeting called for
17 that purpose, which proportionately adjusts all percentage
18 interests so that the total is equal to 100%, unless the
19 declaration specifically provides for a different
20 procedure or different percentage vote by the owners of the
21 units and the owners of mortgages thereon affected by
22 modification being made in the undivided interest in the
23 common areas, the number of votes in the unit owners
24 association or the liability for common expenses
25 appertaining to the unit.
26 (3) If an omission or error or a scrivener's error in

HB2721- 19 -LRB101 06795 LNS 51822 b
1 the declaration or other instrument is corrected by vote of
2 two-thirds of the members of the board of directors
3 pursuant to the authority established in subdivisions
4 (h)(1) or (h)(2) of this Section, the board, upon written
5 petition by unit owners with 20% of the votes of the
6 association or resolutions adopted by the board of managers
7 or board of directors of the condominium and common
8 interest community associations which select 20% of the
9 members of the board of directors of the master
10 association, whichever is applicable, received within 30
11 days of the board action, shall call a meeting of the unit
12 owners or the boards of the condominium and common interest
13 community associations which select members of the board of
14 directors of the master association within 30 days of the
15 filing of the petition or receipt of the condominium and
16 common interest community association resolution to
17 consider the board action. Unless a majority of the votes
18 of the unit owners of the association are cast at the
19 meeting to reject the action, or board of managers or board
20 of directors of condominium and common interest community
21 associations which select over 50% of the members of the
22 board of the master association adopt resolutions prior to
23 the meeting rejecting the action of the board of directors
24 of the master association, it is ratified whether or not a
25 quorum is present.
26 (4) The procedures for amendments set forth in this

HB2721- 20 -LRB101 06795 LNS 51822 b
1 subsection (h) cannot be used if such an amendment would
2 materially or adversely affect property rights of the unit
3 owners unless the affected unit owners consent in writing.
4 This Section does not restrict the powers of the
5 association to otherwise amend the declaration, bylaws, or
6 other condominium instruments, but authorizes a simple
7 process of amendment requiring a lesser vote for the
8 purpose of correcting defects, errors, or omissions when
9 the property rights of the unit owners are not materially
10 or adversely affected.
11 (5) If there is an omission or error in the declaration
12 or other instruments that may not be corrected by an
13 amendment procedure set forth in subdivision (h)(1) or
14 (h)(2) of this Section, then the circuit court in the
15 county in which the master association is located shall
16 have jurisdiction to hear a petition of one or more of the
17 unit owners thereon or of the association, to correct the
18 error or omission, and the action may be a class action.
19 The court may require that one or more methods of
20 correcting the error or omission be submitted to the unit
21 owners to determine the most acceptable correction. All
22 unit owners in the association must be joined as parties to
23 the action. Service of process on owners may be by
24 publication, but the plaintiff shall furnish all unit
25 owners not personally served with process with copies of
26 the petition and final judgment of the court by certified

HB2721- 21 -LRB101 06795 LNS 51822 b
1 mail, return receipt requested, at their last known
2 address.
3 (6) Nothing contained in this Section shall be
4 construed to invalidate any provision of a declaration
5 authorizing the developer to amend an instrument prior to
6 the latest date on which the initial membership meeting of
7 the unit owners must be held, whether or not it has
8 actually been held, to bring the instrument into compliance
9 with the legal requirements of the Federal National
10 Mortgage Association, the Federal Home Loan Mortgage
11 Corporation, the Federal Housing Administration, the
12 United States Veterans Administration or their respective
13 successors and assigns.
14 (i) The provisions of subsections (c) through (h) are
15applicable to all declarations, other condominium instruments,
16and other duly recorded covenants establishing the powers and
17duties of the master association recorded under this Act. Any
18portion of a declaration, other condominium instrument, or
19other duly recorded covenant establishing the powers and duties
20of a master association which contains provisions contrary to
21the provisions of subsection (c) through (h) shall be void as
22against public policy and ineffective. Any declaration, other
23condominium instrument, or other duly recorded covenant
24establishing the powers and duties of the master association
25which fails to contain the provisions required by subsections
26(c) through (h) shall be deemed to incorporate such provisions

HB2721- 22 -LRB101 06795 LNS 51822 b
1by operation of law.
2 (j) (Blank).
3(Source: P.A. 100-416, eff. 1-1-18.)
4 (765 ILCS 605/22.1) (from Ch. 30, par. 322.1)
5 Sec. 22.1. (a) In the event of any resale of a condominium
6unit by a unit owner other than the developer such owner shall
7obtain from the Board of Managers and shall make available for
8inspection to the prospective purchaser, upon demand, the
9following:
10 (1) A copy of the Declaration, by-laws, other
11 condominium instruments and any rules and regulations.
12 (2) A statement of any liens, including a statement of
13 the account of the unit setting forth the amounts of unpaid
14 assessments and other charges due and owing as authorized
15 and limited by the provisions of Section 9 of this Act or
16 the condominium instruments.
17 (3) A statement of any capital expenditures
18 anticipated by the unit owner's association within the
19 current or succeeding two fiscal years.
20 (4) A statement of the status and amount of any reserve
21 for replacement fund and any portion of such fund earmarked
22 for any specified project by the Board of Managers, and a
23 copy of the most recent independent professional reserve
24 study, if any, obtained by the association for the property
25 or a statement that the association has not obtained such a

HB2721- 23 -LRB101 06795 LNS 51822 b
1 study within the last 7 years.
2 (5) A copy of the statement of financial condition of
3 the unit owner's association for the last fiscal year for
4 which such statement is available.
5 (6) A statement of the status of any pending suits or
6 judgments in which the unit owner's association is a party.
7 (7) A statement setting forth what insurance coverage
8 is provided for all unit owners by the unit owner's
9 association.
10 (8) A statement that any improvements or alterations
11 made to the unit, or the limited common elements assigned
12 thereto, by the prior unit owner are in good faith believed
13 to be in compliance with the condominium instruments.
14 (9) The identity and mailing address of the principal
15 officer of the unit owner's association or of the other
16 officer or agent as is specifically designated to receive
17 notices.
18 (b) The principal officer of the unit owner's association
19or such other officer as is specifically designated shall
20furnish the above information when requested to do so in
21writing and within 30 days of the request.
22 (c) Within 15 days of the recording of a mortgage or trust
23deed against a unit ownership given by the owner of that unit
24to secure a debt, the owner shall inform the Board of Managers
25of the unit owner's association of the identity of the lender
26together with a mailing address at which the lender can receive

HB2721- 24 -LRB101 06795 LNS 51822 b
1notices from the association. If a unit owner fails or refuses
2to inform the Board as required under subsection (c) then that
3unit owner shall be liable to the association for all costs,
4expenses and reasonable attorneys fees and such other damages,
5if any, incurred by the association as a result of such failure
6or refusal.
7 A reasonable fee covering the direct out-of-pocket cost of
8providing such information and copying may be charged by the
9association or its Board of Managers to the unit seller for
10providing such information.
11(Source: P.A. 87-692.)
feedback