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
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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,
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3 | represented in the General Assembly:
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4 | Section 5. The Common Interest Community Association Act is | |||||||||||||||||||||||
5 | amended by changing Section 1-35 as follows:
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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, | |||||||||||||||||||||||
9 | other community instruments, and rules and regulations that | |||||||||||||||||||||||
10 | relate to the use of an individual unit or the common areas | |||||||||||||||||||||||
11 | shall be applicable to any person leasing a unit and shall be | |||||||||||||||||||||||
12 | deemed to be incorporated in any lease executed or renewed on | |||||||||||||||||||||||
13 | or after the effective date of this Act. Unless otherwise | |||||||||||||||||||||||
14 | provided in the community instruments, with regard to any lease | |||||||||||||||||||||||
15 | entered into subsequent to the effective date of this Act, the | |||||||||||||||||||||||
16 | unit owner leasing the unit shall deliver a copy of the signed | |||||||||||||||||||||||
17 | lease to the association or if the lease is oral, a memorandum | |||||||||||||||||||||||
18 | of the lease, not later than the date of occupancy or 10 days | |||||||||||||||||||||||
19 | after the lease is signed, whichever occurs first. | |||||||||||||||||||||||
20 | (b) If there are multiple owners of a single unit, only one | |||||||||||||||||||||||
21 | of the multiple owners shall be eligible to serve as a member | |||||||||||||||||||||||
22 | of the board at any one time, unless the unit owner owns | |||||||||||||||||||||||
23 | another unit independently. |
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1 | (c) Two-thirds of the membership may remove a board member | ||||||
2 | as a director at a duly called special meeting. | ||||||
3 | (d) In the event of any resale of a unit in a common | ||||||
4 | interest community association by a member or unit owner other | ||||||
5 | than the developer, the board shall make available for | ||||||
6 | inspection to the prospective purchaser, upon demand, the | ||||||
7 | following:
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8 | (1) A copy of the declaration, other instruments, and | ||||||
9 | any rules and regulations.
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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.
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13 | (3) A statement of any capital expenditures | ||||||
14 | anticipated by the association within the current or | ||||||
15 | succeeding 2 fiscal years.
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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 .
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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.
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26 | (6) A statement of the status of any pending suits or |
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1 | judgments in which the association is a party.
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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.
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5 | The principal officer of the board or such other officer as | ||||||
6 | is specifically designated shall furnish the above information | ||||||
7 | within 30 days after receiving a written request for such | ||||||
8 | information. | ||||||
9 | A reasonable fee covering the direct out-of-pocket cost of | ||||||
10 | copying and providing such information may be charged by the | ||||||
11 | association or the board to the unit seller for providing the | ||||||
12 | information.
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13 | (Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12; | ||||||
14 | 98-842, eff. 1-1-15 .)
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15 | Section 10. The Condominium Property Act is amended by | ||||||
16 | changing Sections 18.5 and 22.1 as follows:
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17 | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
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18 | Sec. 18.5. Master Associations.
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19 | (a) If the declaration, other condominium instrument, or | ||||||
20 | other duly
recorded covenants provide that any of the powers of | ||||||
21 | the unit owners
associations are to be exercised by or may be | ||||||
22 | delegated to a nonprofit
corporation or unincorporated | ||||||
23 | association that exercises
those or other powers on behalf of | ||||||
24 | one or more condominiums, or for the
benefit of the unit owners |
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1 | of one or more condominiums, such
corporation or association | ||||||
2 | shall be a master association.
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3 | (b) There shall be included in the declaration, other
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4 | condominium instruments, or other duly recorded covenants | ||||||
5 | establishing
the powers and duties of the master association | ||||||
6 | the provisions set forth in
subsections (c) through (h).
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7 | In interpreting subsections (c) through (h), the courts | ||||||
8 | should
interpret these provisions so that they are interpreted | ||||||
9 | consistently with
the similar parallel provisions found in | ||||||
10 | other parts of this Act.
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11 | (c) Meetings and finances.
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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.
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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
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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.
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25 | (3) Each unit owner of a condominium subject to the | ||||||
26 | authority of
the board of the master association shall |
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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.
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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:
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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,
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15 | (B) to consider information regarding appointment, | ||||||
16 | employment or
dismissal of an employee, or
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17 | (C) to discuss violations of rules and regulations | ||||||
18 | of the master
association or unpaid common expenses | ||||||
19 | owed to the master association.
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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.
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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. |
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1 | Notice of meetings shall be mailed or delivered at least 48
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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.
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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 |
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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
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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.
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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.
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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
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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.
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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) |
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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.
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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:
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15 | (i) Copies of the recorded declaration, other | ||||||
16 | condominium instruments,
other duly recorded covenants | ||||||
17 | and bylaws and any amendments, articles of
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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.
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25 | (ii) Detailed and accurate records in | ||||||
26 | chronological order of the
receipts and expenditures |
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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.
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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.
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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.
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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.
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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.
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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 |
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1 | within 30 days shall be deemed a denial by the board
of | ||||||
2 | directors.
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3 | (3) A reasonable fee may be charged by the master | ||||||
4 | association or its
board for the cost of copying.
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5 | (4) If the board of directors fails to provide records | ||||||
6 | properly
requested under subdivision (d)(1) within the
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7 | time period provided in subdivision (d)(2), the
unit owner | ||||||
8 | may seek appropriate relief, including an award of
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9 | attorney's fees and costs.
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10 | (e) The board of directors shall have standing and capacity | ||||||
11 | to act in
a representative capacity in relation to matters | ||||||
12 | involving the common areas
of the master association or more | ||||||
13 | than one unit, on behalf of the unit
owners as their interests | ||||||
14 | may appear.
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15 | (f) Administration of property prior to election of the | ||||||
16 | initial board
of directors.
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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.
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26 | (2) The election of the initial board of directors of a |
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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
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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.
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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
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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.
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26 | (4) Within 60 days following the election of a majority |
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1 | of the board
of directors, other than the developer, by | ||||||
2 | unit owners, the developer shall
deliver to the board of | ||||||
3 | directors:
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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.
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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.
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20 | (iii) Association funds, which shall have been at | ||||||
21 | all times
segregated from any other moneys of the | ||||||
22 | developer.
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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 |
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1 | and
equipment, deeds, title insurance policies, and | ||||||
2 | all tax bills.
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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
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9 | authority, all other documents filed with any other | ||||||
10 | governmental authority,
all governmental certificates, | ||||||
11 | correspondence involving enforcement of any
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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.
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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
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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.
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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
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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
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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,
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26 | lease, or other agreement shall also have the right of |
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1 | cancellation.
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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.
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7 | (g) In the event of any resale of a unit in a master | ||||||
8 | association by a unit
owner other than the developer, the owner | ||||||
9 | shall obtain from
the board of directors and shall make | ||||||
10 | available for inspection to the
prospective purchaser, upon | ||||||
11 | demand, the following:
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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.
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17 | (3) A statement of any capital expenditures | ||||||
18 | anticipated by the
association within the current or | ||||||
19 | succeeding 2 fiscal years.
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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 .
|
| |||||||
| |||||||
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 | ||||||
14 | such
other officer as is specifically designated shall furnish | ||||||
15 | the above
information when requested to do so in writing, | ||||||
16 | within
30 days of receiving the request.
| ||||||
17 | A reasonable fee covering the direct out-of-pocket cost of | ||||||
18 | copying
and providing such information may be charged
by the | ||||||
19 | association or its board of directors to the unit
seller for | ||||||
20 | providing the information.
| ||||||
21 | (g-1) The purchaser of a unit of a common interest | ||||||
22 | community at a judicial foreclosure sale, other than a | ||||||
23 | mortgagee, who takes possession of a unit of a common interest | ||||||
24 | community pursuant to a court order or a purchaser who acquires | ||||||
25 | title from a mortgagee shall have the duty to pay the | ||||||
26 | proportionate share, if any, of the common expenses for the |
| |||||||
| |||||||
1 | unit that would have become due in the absence of any | ||||||
2 | assessment acceleration during the 6 months immediately | ||||||
3 | preceding institution of an action to enforce the collection of | ||||||
4 | assessments and the court costs incurred by the association in | ||||||
5 | an action to enforce the collection that remain unpaid by the | ||||||
6 | owner during whose possession the assessments accrued. If the | ||||||
7 | outstanding assessments and the court costs incurred by the | ||||||
8 | association in an action to enforce the collection are paid at | ||||||
9 | any time during any action to enforce the collection of | ||||||
10 | assessments, the purchaser shall have no obligation to pay any | ||||||
11 | assessments that accrued before he or she acquired title. The | ||||||
12 | notice of sale of a unit of a common interest community under | ||||||
13 | subsection (c) of Section 15-1507 of the Code of Civil | ||||||
14 | Procedure shall state that the purchaser of the unit other than | ||||||
15 | a mortgagee shall pay the assessments and court costs required | ||||||
16 | by 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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 | ||||||
15 | applicable
to all declarations, other condominium instruments, | ||||||
16 | and other
duly recorded covenants establishing the powers and | ||||||
17 | duties of the master
association recorded under this Act. Any | ||||||
18 | portion of a declaration,
other condominium instrument, or | ||||||
19 | other duly recorded covenant establishing
the powers and duties | ||||||
20 | of a master association which contains provisions
contrary to | ||||||
21 | the provisions of subsection (c) through (h) shall be void as
| ||||||
22 | against public policy and ineffective. Any declaration, other | ||||||
23 | condominium
instrument, or other duly recorded covenant | ||||||
24 | establishing the powers and
duties of the master association | ||||||
25 | which fails to contain the provisions
required by subsections | ||||||
26 | (c) through (h) shall be deemed to incorporate such
provisions |
| |||||||
| |||||||
1 | by 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 | ||||||
6 | unit by a
unit owner other than the developer such owner shall | ||||||
7 | obtain from the Board
of Managers and shall make available for | ||||||
8 | inspection to the prospective
purchaser, upon demand, the | ||||||
9 | following:
| ||||||
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 |
| |||||||
| |||||||
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 | ||||||
19 | or such other
officer as is specifically designated shall | ||||||
20 | furnish the above information
when requested to do so in | ||||||
21 | writing and within 30 days of the request.
| ||||||
22 | (c) Within 15 days of the recording of a mortgage or trust | ||||||
23 | deed
against a unit ownership given by the owner of that unit | ||||||
24 | to secure a debt,
the owner shall inform the Board of Managers | ||||||
25 | of the unit owner's
association of the identity of the lender | ||||||
26 | together with a mailing address
at which the lender can receive |
| |||||||
| |||||||
1 | notices from the association.
If a unit owner fails or refuses | ||||||
2 | to inform the Board as required under
subsection (c) then that | ||||||
3 | unit owner shall be liable to the association for
all costs, | ||||||
4 | expenses and reasonable attorneys fees and such other damages,
| ||||||
5 | if any, incurred by the association as a result of such failure | ||||||
6 | or refusal.
| ||||||
7 | A reasonable fee covering the direct out-of-pocket cost of | ||||||
8 | providing
such information and copying may be charged by the | ||||||
9 | association or its Board
of Managers to the unit seller for | ||||||
10 | providing such information.
| ||||||
11 | (Source: P.A. 87-692.)
|