Bill Text: IL HB4090 | 2023-2024 | 103rd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Inserts the bill, including House Amendments No. 1 and No. 2, and the following addition: Provides that nothing in the Rental Property Utility Service Act may be construed as giving a common interest community association the right to establish a system of master metering or submetering of public utility services.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed) 2024-04-24 - Referred to Assignments [HB4090 Detail]
Download: Illinois-2023-HB4090-Introduced.html
Bill Title: Inserts the bill, including House Amendments No. 1 and No. 2, and the following addition: Provides that nothing in the Rental Property Utility Service Act may be construed as giving a common interest community association the right to establish a system of master metering or submetering of public utility services.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed) 2024-04-24 - Referred to Assignments [HB4090 Detail]
Download: Illinois-2023-HB4090-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 | |||||||||||||||||||||||||||||||
5 | is amended by changing Section 1-45 as follows:
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6 | (765 ILCS 160/1-45) | |||||||||||||||||||||||||||||||
7 | Sec. 1-45. Finances. | |||||||||||||||||||||||||||||||
8 | (a) Each member shall receive through a prescribed | |||||||||||||||||||||||||||||||
9 | delivery method, at least 30 days but not more than 60 days | |||||||||||||||||||||||||||||||
10 | prior to the adoption thereof by the board, a copy of the | |||||||||||||||||||||||||||||||
11 | proposed annual budget together with an indication of which | |||||||||||||||||||||||||||||||
12 | portions are intended for reserves, capital expenditures or | |||||||||||||||||||||||||||||||
13 | repairs or payment of real estate taxes. | |||||||||||||||||||||||||||||||
14 | (b) The board shall provide all members with a reasonably | |||||||||||||||||||||||||||||||
15 | detailed summary of the receipts, common expenses, and | |||||||||||||||||||||||||||||||
16 | reserves for the preceding budget year. The board shall (i) | |||||||||||||||||||||||||||||||
17 | make available for review to all members an itemized | |||||||||||||||||||||||||||||||
18 | accounting of the common expenses for the preceding year | |||||||||||||||||||||||||||||||
19 | actually incurred or paid, together with an indication of | |||||||||||||||||||||||||||||||
20 | which portions were for reserves, capital expenditures or | |||||||||||||||||||||||||||||||
21 | repairs or payment of real estate taxes and with a tabulation | |||||||||||||||||||||||||||||||
22 | of the amounts collected pursuant to the budget or assessment, | |||||||||||||||||||||||||||||||
23 | and showing the net excess or deficit of income over |
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1 | expenditures plus reserves or (ii) provide a consolidated | ||||||
2 | annual independent audit report of the financial status of all | ||||||
3 | fund accounts within the association. | ||||||
4 | (c) If an adopted budget or any separate assessment | ||||||
5 | adopted by the board would result in the sum of all regular and | ||||||
6 | separate assessments payable in the current fiscal year | ||||||
7 | exceeding 115% of the sum of all regular and separate | ||||||
8 | assessments payable during the preceding fiscal year, the | ||||||
9 | common interest community association, upon written petition | ||||||
10 | by members with 20% of the votes of the association delivered | ||||||
11 | to the board within 14 days of the board action, shall call a | ||||||
12 | meeting of the members within 30 days of the date of delivery | ||||||
13 | of the petition to consider the budget or separate assessment; | ||||||
14 | unless a majority of the total votes of the members are cast at | ||||||
15 | the meeting to reject the budget or separate assessment, it | ||||||
16 | shall be deemed ratified. | ||||||
17 | (d) If total common expenses exceed the total amount of | ||||||
18 | the approved and adopted budget, the common interest community | ||||||
19 | association shall disclose this variance to all its members | ||||||
20 | and specifically identify the subsequent assessments needed to | ||||||
21 | offset this variance in future budgets. | ||||||
22 | (e) Separate assessments for expenditures relating to | ||||||
23 | emergencies or mandated by law may be adopted by the board | ||||||
24 | without being subject to member approval or the provisions of | ||||||
25 | subsection (c) or (f) of this Section. As used herein, | ||||||
26 | "emergency" means a danger to or a compromise of the |
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1 | structural integrity of the common areas or any of the common | ||||||
2 | facilities of the common interest community. "Emergency" also | ||||||
3 | includes a danger to the life, health or safety of the | ||||||
4 | membership. | ||||||
5 | (f) Assessments for additions and alterations to the | ||||||
6 | common areas or to association-owned property not included in | ||||||
7 | the adopted annual budget, shall be separately assessed and | ||||||
8 | are subject to approval of a simple majority of the total | ||||||
9 | members at a meeting called for that purpose. | ||||||
10 | (g) The board may adopt separate assessments payable over | ||||||
11 | more than one fiscal year. With respect to multi-year | ||||||
12 | assessments not governed by subsections (e) and (f) of this | ||||||
13 | Section, the entire amount of the multi-year assessment shall | ||||||
14 | be deemed considered and authorized in the first fiscal year | ||||||
15 | in which the assessment is approved. | ||||||
16 | (h) The board of a common interest community association | ||||||
17 | shall have the authority to establish and maintain a system of | ||||||
18 | master metering of public utility services to collect payments | ||||||
19 | in conjunction therewith, subject to the requirements of | ||||||
20 | Section 1.5 of the Residential Property Utility Service the | ||||||
21 | Tenant Utility Payment Disclosure Act. | ||||||
22 | (i) An association subject to this Act that consists of | ||||||
23 | 100 or more units shall use generally accepted accounting | ||||||
24 | principles in fulfilling any accounting obligations under this | ||||||
25 | Act.
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26 | (Source: P.A. 100-292, eff. 1-1-18 .)
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1 | Section 10. The Condominium Property Act is amended by | ||||||
2 | changing Sections 18 and 18.5 as follows:
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3 | (765 ILCS 605/18) (from Ch. 30, par. 318)
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4 | Sec. 18. Contents of bylaws. The bylaws shall provide for | ||||||
5 | at least
the following:
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6 | (a)(1) The election from among the unit owners of a | ||||||
7 | board of managers, the number of persons constituting such | ||||||
8 | board, and that the terms of at
least one-third of the | ||||||
9 | members of the board shall expire annually and that
all | ||||||
10 | members of the board shall be elected at large; if there | ||||||
11 | are multiple owners of a single unit, only one of the | ||||||
12 | multiple
owners shall be eligible to serve as a member of | ||||||
13 | the board at any one time. A declaration first submitting | ||||||
14 | property to the provisions of this Act, in accordance with | ||||||
15 | Section 3 after the effective date of this amendatory Act | ||||||
16 | of the 102nd General Assembly, or an amendment to the | ||||||
17 | condominium instruments adopted in accordance with Section | ||||||
18 | 27 after the effective date of this amendatory Act of the | ||||||
19 | 102nd General Assembly, may provide that a majority of the | ||||||
20 | board of managers, or such lesser number as may be | ||||||
21 | specified in the declaration, must be comprised of unit | ||||||
22 | owners occupying their unit as their primary residence; | ||||||
23 | provided that the condominium instruments may not require | ||||||
24 | that more than a majority of the board shall be comprised |
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1 | of unit owners who occupy their unit as their principal | ||||||
2 | residence;
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3 | (2) the powers and duties of the board;
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4 | (3) the compensation, if any, of the members of the | ||||||
5 | board;
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6 | (4) the method of removal from office of members of | ||||||
7 | the board;
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8 | (5) that the board may engage the services of a | ||||||
9 | manager or managing agent;
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10 | (6) that each unit owner shall receive, at least 25 | ||||||
11 | days prior to the
adoption thereof by the board of | ||||||
12 | managers, a copy of the proposed annual
budget together | ||||||
13 | with an indication of which portions are intended for
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14 | reserves, capital expenditures or repairs or payment of | ||||||
15 | real estate taxes;
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16 | (7) that the board of managers shall annually supply | ||||||
17 | to
all unit owners an itemized accounting of the common | ||||||
18 | expenses
for the preceding year actually incurred or paid, | ||||||
19 | together
with an indication of which portions were for | ||||||
20 | reserves, capital
expenditures or repairs or payment of | ||||||
21 | real estate taxes and
with a tabulation of the amounts | ||||||
22 | collected pursuant to the
budget or assessment, and | ||||||
23 | showing the net excess or
deficit of income over | ||||||
24 | expenditures plus reserves;
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25 | (8)(i) that each unit owner shall receive notice, in | ||||||
26 | the same manner
as is provided in this Act for membership |
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1 | meetings, of any meeting of the
board of managers | ||||||
2 | concerning the adoption of the proposed annual budget and
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3 | regular assessments pursuant thereto or to adopt a | ||||||
4 | separate (special)
assessment, (ii) that except as | ||||||
5 | provided in subsection (iv) below, if an
adopted
budget or | ||||||
6 | any separate assessment adopted by the board would result | ||||||
7 | in the
sum of all regular and separate assessments payable | ||||||
8 | in the current fiscal year
exceeding 115% of the sum of all | ||||||
9 | regular and separate
assessments payable during the
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10 | preceding fiscal year, the
board of managers, upon written | ||||||
11 | petition by unit owners with 20 percent of
the votes of the | ||||||
12 | association delivered to the board within 21
days of the | ||||||
13 | board action,
shall call a meeting of the unit owners | ||||||
14 | within 30 days of the date of
delivery of the petition to | ||||||
15 | consider the budget or separate
assessment; unless a
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16 | majority of
the total votes of the unit owners are cast at | ||||||
17 | the meeting to reject the
budget or separate assessment,
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18 | it is ratified, (iii) that any common expense not set | ||||||
19 | forth in the budget or
any increase in assessments over | ||||||
20 | the amount adopted in the budget shall be
separately | ||||||
21 | assessed against all unit owners, (iv) that separate | ||||||
22 | assessments for
expenditures relating to emergencies or | ||||||
23 | mandated by law may be adopted by the
board of managers | ||||||
24 | without being subject to unit owner approval or the
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25 | provisions of item (ii) above or item (v) below. As used
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26 | herein, "emergency" means an immediate danger to the |
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1 | structural integrity of
the
common elements or to the | ||||||
2 | life, health, safety or property of the unit owners,
(v) | ||||||
3 | that assessments
for additions and alterations to the | ||||||
4 | common elements or to association-owned
property not | ||||||
5 | included in the adopted annual budget, shall be separately
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6 | assessed and are subject to approval of two-thirds of the | ||||||
7 | total votes of all
unit owners, (vi) that the board of | ||||||
8 | managers may adopt separate assessments
payable over more | ||||||
9 | than one fiscal year. With respect to multi-year | ||||||
10 | assessments
not governed by items (iv) and (v), the entire | ||||||
11 | amount of the multi-year
assessment shall be deemed | ||||||
12 | considered and authorized in the first fiscal year
in | ||||||
13 | which the assessment is approved;
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14 | (9)(A) that every meeting of the board of managers | ||||||
15 | shall be open to any unit
owner, except that the board may | ||||||
16 | close any portion of a noticed meeting or meet separately | ||||||
17 | from a noticed meeting to: (i) discuss litigation
when an | ||||||
18 | action against or on behalf of the particular association | ||||||
19 | has been
filed and is pending in a court or administrative | ||||||
20 | tribunal,
or when the board of managers finds that such an | ||||||
21 | action is probable
or imminent, (ii) discuss the | ||||||
22 | appointment, employment, engagement,
or dismissal of an | ||||||
23 | employee, independent contractor, agent, or other provider | ||||||
24 | of goods and services, (iii) interview a potential | ||||||
25 | employee, independent contractor, agent, or other provider | ||||||
26 | of goods and services, (iv) discuss violations of rules |
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1 | and
regulations of the association, (v) discuss a unit | ||||||
2 | owner's unpaid share of common
expenses, or (vi) consult | ||||||
3 | with the association's legal counsel; that any vote on | ||||||
4 | these matters shall take place at a meeting of the board of | ||||||
5 | managers or
portion thereof open to any unit owner; | ||||||
6 | (B) that board members may participate in and act at | ||||||
7 | any meeting of the board of managers in person, by | ||||||
8 | telephonic means, or by use of any acceptable | ||||||
9 | technological means whereby all persons participating in | ||||||
10 | the meeting can communicate with each other; that | ||||||
11 | participation constitutes attendance and presence in | ||||||
12 | person at the meeting; | ||||||
13 | (C) that any unit owner may record the
proceedings at | ||||||
14 | meetings of the board of managers or portions thereof | ||||||
15 | required to be open by this
Act by tape, film or other | ||||||
16 | means, and that the board may prescribe reasonable
rules | ||||||
17 | and regulations to govern the right to make such | ||||||
18 | recordings; | ||||||
19 | (D) that
notice of every meeting of the board of | ||||||
20 | managers shall be given to every board member at least 48 | ||||||
21 | hours
prior thereto, unless the board member waives notice | ||||||
22 | of the meeting pursuant to subsection (a) of Section 18.8; | ||||||
23 | and | ||||||
24 | (E) that notice of every meeting
of the board of | ||||||
25 | managers shall be posted in entranceways,
elevators, or | ||||||
26 | other conspicuous places in the condominium at least 48 |
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1 | hours
prior to the meeting of the board of managers except | ||||||
2 | where there is no
common entranceway for 7 or more units, | ||||||
3 | the board of managers may designate
one or more locations | ||||||
4 | in the proximity of these units where the notices of
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5 | meetings shall be posted; that notice of every meeting of | ||||||
6 | the board of managers shall also be given at least 48 hours | ||||||
7 | prior to the meeting, or such longer notice as this Act may | ||||||
8 | separately require, to: (i) each unit owner who has | ||||||
9 | provided the association with written authorization to | ||||||
10 | conduct business by acceptable technological means, and | ||||||
11 | (ii) to the extent that the condominium instruments of an | ||||||
12 | association require, to each other unit owner, as required | ||||||
13 | by subsection (f) of Section 18.8, by mail or delivery, | ||||||
14 | and that no other notice of a meeting of the board of | ||||||
15 | managers need be given to any unit owner;
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16 | (10) that the board shall meet at least 4 times | ||||||
17 | annually;
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18 | (11) that no member of the board or officer shall be | ||||||
19 | elected for a term
of more than 2 years, but that officers | ||||||
20 | and board members may succeed
themselves;
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21 | (12) the designation of an officer to mail and receive | ||||||
22 | all notices and
execute amendments to condominium | ||||||
23 | instruments as provided for in this Act
and in the | ||||||
24 | condominium instruments;
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25 | (13) the method of filling vacancies on the board
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26 | which shall include authority for the remaining members of |
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1 | the board to
fill the vacancy by two-thirds vote until the | ||||||
2 | next annual meeting of unit
owners or for a period | ||||||
3 | terminating no later than 30 days following the
filing of | ||||||
4 | a petition signed by unit owners holding 20% of the votes | ||||||
5 | of the
association requesting a meeting of the unit owners | ||||||
6 | to fill the vacancy for
the balance of the term, and that a | ||||||
7 | meeting of the unit owners shall be
called for purposes of | ||||||
8 | filling a vacancy on the board no later than 30 days
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9 | following the filing of a petition signed by unit owners | ||||||
10 | holding 20% of the
votes of the association requesting | ||||||
11 | such a meeting, and the method of filling
vacancies among | ||||||
12 | the officers that shall include the authority for the | ||||||
13 | members
of the board to fill the vacancy for the unexpired | ||||||
14 | portion of the term;
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15 | (14) what percentage of the board of managers, if | ||||||
16 | other than a majority,
shall constitute a quorum;
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17 | (15) provisions concerning notice of board meetings to | ||||||
18 | members of the
board;
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19 | (16) the board of managers may not enter into a | ||||||
20 | contract with a
current board member
or with a corporation | ||||||
21 | or partnership in which a board
member or a member of the | ||||||
22 | board member's immediate family has 25% or
more interest, | ||||||
23 | unless notice of intent to enter the
contract is given to | ||||||
24 | unit owners within 20 days after a decision is made
to | ||||||
25 | enter into the contract and the unit owners are
afforded | ||||||
26 | an opportunity by filing a petition, signed by 20% of the |
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1 | unit
owners, for an election to approve or disapprove the | ||||||
2 | contract;
such petition shall be filed within 30 days | ||||||
3 | after such notice and such
election shall be held within | ||||||
4 | 30 days after filing the petition; for purposes
of this | ||||||
5 | subsection, a board member's immediate family means the | ||||||
6 | board member's
spouse, parents, and children;
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7 | (17) that the board of managers may disseminate
to | ||||||
8 | unit owners biographical and background information about | ||||||
9 | candidates for
election to the board if (i) reasonable | ||||||
10 | efforts to identify all candidates are
made and all | ||||||
11 | candidates are given an opportunity to include | ||||||
12 | biographical and
background information in the information | ||||||
13 | to be disseminated; and (ii) the
board does not express a | ||||||
14 | preference in favor of any candidate;
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15 | (18) any proxy distributed for board elections
by the | ||||||
16 | board of managers gives unit owners the
opportunity to | ||||||
17 | designate any person as the proxy holder, and gives the | ||||||
18 | unit
owner the opportunity to express a preference for any | ||||||
19 | of the known
candidates for the board or to write in a | ||||||
20 | name;
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21 | (19) that special meetings of the board of managers | ||||||
22 | can be called by
the president or 25% of the members of the | ||||||
23 | board;
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24 | (20) that the board of managers may establish
and | ||||||
25 | maintain a system of master metering of public utility | ||||||
26 | services and
collect payments in connection therewith, |
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1 | subject to the requirements of Section 1.5 of the | ||||||
2 | Residential Property Utility Service the
Tenant Utility | ||||||
3 | Payment Disclosure Act ; and
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4 | (21) that the board may ratify and confirm actions of | ||||||
5 | the
members of the board taken in response to an | ||||||
6 | emergency, as that
term is defined in subdivision | ||||||
7 | (a)(8)(iv) of this Section; that
the board shall give | ||||||
8 | notice to the unit owners of: (i) the
occurrence of the | ||||||
9 | emergency event within 7 business days after
the emergency | ||||||
10 | event, and (ii) the general description of the
actions | ||||||
11 | taken to address the event within 7 days after the
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12 | emergency event. | ||||||
13 | The intent of the provisions of Public Act 99-472 | ||||||
14 | adding this paragraph (21) is to empower and support | ||||||
15 | boards to act in
emergencies. | ||||||
16 | (b)(1) What percentage of the unit owners, if other | ||||||
17 | than 20%, shall
constitute a quorum provided that, for | ||||||
18 | condominiums with 20 or more units,
the percentage of unit | ||||||
19 | owners constituting a quorum shall be 20% unless the
unit | ||||||
20 | owners holding a majority of the percentage interest in | ||||||
21 | the
association provide for a higher percentage, provided | ||||||
22 | that in voting on amendments to the association's bylaws, | ||||||
23 | a unit owner who is in arrears on the unit owner's regular | ||||||
24 | or separate assessments for 60 days or more, shall not be | ||||||
25 | counted for purposes of determining if a quorum is | ||||||
26 | present, but that unit owner retains the right to vote on |
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1 | amendments to the association's bylaws;
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2 | (2) that the association shall have one class of | ||||||
3 | membership;
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4 | (3) that the members shall hold an annual meeting, one | ||||||
5 | of the purposes
of which shall be to elect members of the | ||||||
6 | board of managers;
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7 | (4) the method of calling meetings of the unit owners;
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8 | (5) that special meetings of the members can be called | ||||||
9 | by the president,
board of managers, or by 20% of unit | ||||||
10 | owners;
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11 | (6) that written notice of any membership meeting | ||||||
12 | shall be mailed
or delivered giving members no less than | ||||||
13 | 10 and no more than 30 days
notice of the time, place and | ||||||
14 | purpose of such meeting except that notice may be sent, to | ||||||
15 | the extent the condominium instruments or rules adopted | ||||||
16 | thereunder expressly so provide, by electronic | ||||||
17 | transmission consented to by the unit owner to whom the | ||||||
18 | notice is given, provided the director and officer or his | ||||||
19 | agent certifies in writing to the delivery by electronic | ||||||
20 | transmission;
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21 | (7) that voting shall be on a percentage basis, and | ||||||
22 | that the percentage
vote to which each unit is entitled is | ||||||
23 | the percentage interest of the
undivided ownership of the | ||||||
24 | common elements appurtenant thereto, provided
that the | ||||||
25 | bylaws may provide for approval by unit owners in | ||||||
26 | connection with
matters where the requisite approval on a |
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1 | percentage basis is not specified
in this Act, on the | ||||||
2 | basis of one vote per unit;
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3 | (8) that, where there is more than one owner of a unit, | ||||||
4 | if only one
of the multiple owners is present at a meeting | ||||||
5 | of the association, he is
entitled to cast all the votes | ||||||
6 | allocated to that unit, if more than one of
the multiple | ||||||
7 | owners are present, the votes allocated to that unit may | ||||||
8 | be
cast only in accordance with the agreement of a | ||||||
9 | majority in interest of the
multiple owners, unless the | ||||||
10 | declaration expressly provides otherwise, that
there is | ||||||
11 | majority agreement if any one of the multiple owners cast | ||||||
12 | the
votes allocated to that unit without protest being | ||||||
13 | made promptly to the
person presiding over the meeting by | ||||||
14 | any of the other owners of the unit;
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15 | (9)(A) except as provided in subparagraph (B) of this | ||||||
16 | paragraph (9) in
connection with board elections, that
a | ||||||
17 | unit owner may vote by proxy executed in writing by the | ||||||
18 | unit
owner or by his duly authorized attorney in fact; | ||||||
19 | that the proxy must bear the date of
execution
and, unless | ||||||
20 | the condominium instruments or the written proxy itself | ||||||
21 | provide
otherwise, is
invalid after 11 months from the | ||||||
22 | date of its execution; to the extent the condominium | ||||||
23 | instruments or rules adopted thereunder expressly so | ||||||
24 | provide, a vote or proxy may be submitted by electronic | ||||||
25 | transmission, provided that any such electronic | ||||||
26 | transmission shall either set forth or be submitted with |
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1 | information from which it can be determined that the | ||||||
2 | electronic transmission was authorized by the unit owner | ||||||
3 | or the unit owner's proxy;
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4 | (B) that if a rule adopted at least 120 days before a | ||||||
5 | board election
or the
declaration or bylaws provide for | ||||||
6 | balloting as set forth in this subsection,
unit
owners may | ||||||
7 | not vote by proxy in board elections, but may vote only (i) | ||||||
8 | by
submitting an association-issued ballot in person at | ||||||
9 | the election meeting or
(ii) by
submitting an | ||||||
10 | association-issued ballot to the association or its | ||||||
11 | designated
agent
by mail or other means of delivery | ||||||
12 | specified in the declaration, bylaws, or
rule; that
the | ||||||
13 | ballots shall be mailed or otherwise distributed to unit | ||||||
14 | owners not less
than 10
and not more than 30 days before | ||||||
15 | the election meeting, and the board shall give
unit owners | ||||||
16 | not less than 21 days' prior written notice of the | ||||||
17 | deadline for
inclusion of a candidate's name on the | ||||||
18 | ballots; that the deadline shall be no
more
than 7 days | ||||||
19 | before the ballots are mailed or otherwise distributed to | ||||||
20 | unit
owners; that
every such ballot must include the names | ||||||
21 | of all candidates who have given the
board or its | ||||||
22 | authorized agent timely written notice of their candidacy | ||||||
23 | and must
give the person casting the ballot the | ||||||
24 | opportunity to cast votes for candidates
whose names do | ||||||
25 | not appear on the ballot; that a ballot received by the
| ||||||
26 | association
or
its designated agent after the close of |
| |||||||
| |||||||
1 | voting shall not be counted; that a
unit
owner
who submits | ||||||
2 | a ballot by mail or other means of delivery specified in | ||||||
3 | the
declaration, bylaws, or rule may request and cast a | ||||||
4 | ballot in person at the
election
meeting, and thereby void | ||||||
5 | any ballot previously submitted by that unit owner; | ||||||
6 | (B-5) that if a rule adopted at least 120 days before a | ||||||
7 | board election or the declaration or bylaws provide for | ||||||
8 | balloting as set forth in this subparagraph, unit owners | ||||||
9 | may not vote by proxy in board elections, but may vote only | ||||||
10 | (i) by submitting an association-issued ballot in person | ||||||
11 | at the election meeting; or (ii) by any acceptable | ||||||
12 | technological means as defined in Section 2 of this Act; | ||||||
13 | instructions regarding the use of electronic means for | ||||||
14 | voting shall be distributed to all unit owners not less | ||||||
15 | than 10 and not more than 30 days before the election | ||||||
16 | meeting, and the board shall give unit owners not less | ||||||
17 | than 21 days' prior written notice of the deadline for | ||||||
18 | inclusion of a candidate's name on the ballots; the | ||||||
19 | deadline shall be no more than 7 days before the | ||||||
20 | instructions for voting using electronic or acceptable | ||||||
21 | technological means is distributed to unit owners; every | ||||||
22 | instruction notice must include the names of all | ||||||
23 | candidates who have given the board or its authorized | ||||||
24 | agent timely written notice of their candidacy and must | ||||||
25 | give the person voting through electronic or acceptable | ||||||
26 | technological means the opportunity to cast votes for |
| |||||||
| |||||||
1 | candidates whose names do not appear on the ballot; a unit | ||||||
2 | owner who submits a vote using electronic or acceptable | ||||||
3 | technological means may request and cast a ballot in | ||||||
4 | person at the election meeting, thereby voiding any vote | ||||||
5 | previously submitted by that unit owner;
| ||||||
6 | (C) that if a written petition by unit owners with at | ||||||
7 | least 20% of the
votes of
the association is delivered to | ||||||
8 | the board within 30 days after the board's
approval
of a | ||||||
9 | rule adopted pursuant to subparagraph (B) or subparagraph | ||||||
10 | (B-5) of this paragraph (9), the board
shall call a | ||||||
11 | meeting of the unit owners within 30 days after the date of
| ||||||
12 | delivery of
the petition; that unless a majority of the | ||||||
13 | total votes of the unit owners are
cast
at the
meeting to | ||||||
14 | reject the rule, the rule is ratified;
| ||||||
15 | (D) that votes cast by ballot under subparagraph (B) | ||||||
16 | or electronic or acceptable technological means under | ||||||
17 | subparagraph (B-5) of this paragraph (9) are valid for the | ||||||
18 | purpose of establishing a quorum; | ||||||
19 | (10) that the association may, upon adoption of the | ||||||
20 | appropriate rules by
the board of managers, conduct | ||||||
21 | elections by secret ballot whereby the voting
ballot is | ||||||
22 | marked only with the percentage interest for the unit and | ||||||
23 | the vote
itself, provided that the board further adopt | ||||||
24 | rules to verify the status of the
unit owner issuing a | ||||||
25 | proxy or casting a ballot; and further, that a candidate
| ||||||
26 | for election to the board of managers or such
candidate's |
| |||||||
| |||||||
1 | representative shall have the right to be present at the
| ||||||
2 | counting of ballots at such election;
| ||||||
3 | (11) that in the event of a resale of a condominium | ||||||
4 | unit the purchaser
of a unit from a seller other than the | ||||||
5 | developer pursuant to an installment sales
contract for | ||||||
6 | purchase shall during such times as he or she resides in | ||||||
7 | the
unit be counted toward a quorum for purposes of | ||||||
8 | election of members of the
board of managers at any | ||||||
9 | meeting of the unit owners called for purposes of
electing | ||||||
10 | members of the board, shall have the right to vote for the
| ||||||
11 | election of members of the board of managers and to be | ||||||
12 | elected to and serve
on the board of managers unless the | ||||||
13 | seller expressly retains in writing any
or all of such | ||||||
14 | rights. In no event may the seller and purchaser both be
| ||||||
15 | counted toward a quorum, be permitted to vote for a | ||||||
16 | particular office or be
elected and serve on the board. | ||||||
17 | Satisfactory evidence of the installment sales contract
| ||||||
18 | shall be made available to the association or its agents. | ||||||
19 | For
purposes of this subsection, "installment sales | ||||||
20 | contract" shall have the same
meaning as set forth in | ||||||
21 | Section 5 of the Installment Sales Contract Act and | ||||||
22 | Section 1(e) of the Dwelling Unit Installment Contract | ||||||
23 | Act;
| ||||||
24 | (12) the method by which matters subject to the | ||||||
25 | approval of unit owners
set forth in this Act, or in the | ||||||
26 | condominium instruments, will be
submitted to the unit |
| |||||||
| |||||||
1 | owners at special membership meetings called for such
| ||||||
2 | purposes; and
| ||||||
3 | (13) that matters subject to the affirmative vote of | ||||||
4 | not less than 2/3
of the votes of unit owners at a meeting | ||||||
5 | duly called for that purpose,
shall include, but not be | ||||||
6 | limited to:
| ||||||
7 | (i) merger or consolidation of the association;
| ||||||
8 | (ii) sale, lease, exchange, or other disposition | ||||||
9 | (excluding the mortgage
or pledge) of all, or | ||||||
10 | substantially all of the property and assets of the
| ||||||
11 | association; and
| ||||||
12 | (iii) the purchase or sale of land or of units on | ||||||
13 | behalf of all unit owners.
| ||||||
14 | (c) Election of a president from among the board of | ||||||
15 | managers, who shall
preside over the meetings of the board | ||||||
16 | of managers and of the unit owners.
| ||||||
17 | (d) Election of a secretary from among the board of | ||||||
18 | managers, who shall
keep the minutes of all meetings
of | ||||||
19 | the board of managers and of the unit owners and who shall, | ||||||
20 | in general,
perform all the duties incident to the office | ||||||
21 | of secretary.
| ||||||
22 | (e) Election of a treasurer from among the board of | ||||||
23 | managers, who shall
keep the financial records and
books | ||||||
24 | of account.
| ||||||
25 | (f) Maintenance, repair and replacement of the common | ||||||
26 | elements and
payments therefor, including the method of |
| |||||||
| |||||||
1 | approving payment vouchers.
| ||||||
2 | (g) An association with 30 or more units shall obtain | ||||||
3 | and maintain
fidelity insurance covering persons who | ||||||
4 | control or disburse funds of the
association for the | ||||||
5 | maximum amount of coverage available to protect funds
in | ||||||
6 | the custody or control of the association plus the | ||||||
7 | association reserve
fund. All management companies which | ||||||
8 | are responsible for the funds held or
administered by the | ||||||
9 | association shall maintain and furnish to the
association | ||||||
10 | a fidelity bond for the maximum amount of coverage | ||||||
11 | available to
protect funds in the custody of the | ||||||
12 | management company at any time. The
association shall bear | ||||||
13 | the cost of the fidelity insurance and fidelity
bond, | ||||||
14 | unless otherwise provided by contract between the | ||||||
15 | association and a
management company. The association | ||||||
16 | shall be the direct obligee of any
such fidelity bond. A | ||||||
17 | management company holding reserve funds of an
association | ||||||
18 | shall at all times maintain a separate account for each
| ||||||
19 | association, provided, however, that for investment | ||||||
20 | purposes, the Board of
Managers of an association may | ||||||
21 | authorize a management company to maintain
the | ||||||
22 | association's reserve funds in a single interest bearing | ||||||
23 | account with
similar funds of other associations. The | ||||||
24 | management company shall at all
times maintain records | ||||||
25 | identifying all moneys of each association in such
| ||||||
26 | investment account. The management company may hold all |
| |||||||
| |||||||
1 | operating funds of
associations which it manages in a | ||||||
2 | single operating account but shall at
all times maintain | ||||||
3 | records identifying all moneys of each association in
such | ||||||
4 | operating account. Such operating and reserve funds held | ||||||
5 | by the
management company for the association shall not be | ||||||
6 | subject to attachment
by any creditor of the management | ||||||
7 | company.
| ||||||
8 | For the purpose of this subsection, a management | ||||||
9 | company shall be
defined as a person, partnership, | ||||||
10 | corporation, or other legal entity
entitled to transact | ||||||
11 | business on behalf of others, acting on behalf of or
as an | ||||||
12 | agent for a unit owner, unit owners or association of unit | ||||||
13 | owners for
the purpose of carrying out the duties, | ||||||
14 | responsibilities, and other
obligations necessary for the | ||||||
15 | day to day operation and management of any
property | ||||||
16 | subject to this Act. For purposes of this subsection, the | ||||||
17 | term
"fiduciary insurance coverage" shall be defined as | ||||||
18 | both a fidelity bond and
directors and officers liability | ||||||
19 | coverage, the fidelity bond in the full
amount of | ||||||
20 | association funds and association reserves that will be in | ||||||
21 | the
custody of the association, and the directors and | ||||||
22 | officers liability
coverage at a level as shall be | ||||||
23 | determined to be reasonable by the board of
managers, if | ||||||
24 | not otherwise established by the declaration or by laws.
| ||||||
25 | Until one year after September 21, 1985 (the effective | ||||||
26 | date of Public Act 84-722),
if a condominium association |
| |||||||
| |||||||
1 | has reserves plus assessments in excess of
$250,000 and | ||||||
2 | cannot reasonably obtain 100% fidelity bond coverage for | ||||||
3 | such
amount, then it must obtain a fidelity bond coverage | ||||||
4 | of $250,000.
| ||||||
5 | (h) Method of estimating the amount of the annual | ||||||
6 | budget, and the manner
of assessing and collecting from | ||||||
7 | the unit owners their respective shares of
such estimated | ||||||
8 | expenses, and of any other expenses lawfully agreed upon.
| ||||||
9 | (i) That upon 10 days notice to the manager or board of | ||||||
10 | managers and
payment of a reasonable fee, any unit owner | ||||||
11 | shall be furnished a statement
of his account setting | ||||||
12 | forth the amount of any unpaid assessments or other
| ||||||
13 | charges due and owing from such owner.
| ||||||
14 | (j) Designation and removal of personnel necessary for | ||||||
15 | the maintenance,
repair and replacement of the common | ||||||
16 | elements.
| ||||||
17 | (k) Such restrictions on and requirements respecting | ||||||
18 | the use and
maintenance of the units and the use of the | ||||||
19 | common elements, not set forth
in the declaration, as are | ||||||
20 | designed to prevent unreasonable interference
with the use | ||||||
21 | of their respective units and of the common elements by | ||||||
22 | the
several unit owners.
| ||||||
23 | (l) Method of adopting and of amending administrative | ||||||
24 | rules and
regulations governing the operation and use of | ||||||
25 | the common elements.
| ||||||
26 | (m) The percentage of votes required to modify or |
| |||||||
| |||||||
1 | amend the bylaws, but
each one of the particulars set | ||||||
2 | forth in this section shall always be
embodied in the | ||||||
3 | bylaws.
| ||||||
4 | (n)(i) The provisions of this Act, the declaration, | ||||||
5 | bylaws, other
condominium instruments, and rules and | ||||||
6 | regulations that relate to the use
of the individual unit | ||||||
7 | or the common elements shall be applicable to
any person | ||||||
8 | leasing a unit and shall be deemed to be incorporated in | ||||||
9 | any
lease executed or renewed on or after August 30, 1984 | ||||||
10 | (the effective date of Public Act 83-1271). | ||||||
11 | (ii) With regard to any lease entered into subsequent | ||||||
12 | to July 1, 1990 (the
effective date of Public Act 86-991), | ||||||
13 | the unit owner leasing the
unit shall deliver a copy of the | ||||||
14 | signed lease to the board or if the
lease is oral, a | ||||||
15 | memorandum of the lease, not later than the date of
| ||||||
16 | occupancy or 10 days after the lease is signed, whichever | ||||||
17 | occurs first. In
addition to any other remedies, by filing | ||||||
18 | an action jointly against the
tenant and the unit owner, | ||||||
19 | an association may seek to enjoin a tenant from
occupying | ||||||
20 | a unit or seek to evict a tenant under the provisions of | ||||||
21 | Article
IX of the Code of Civil Procedure for failure of | ||||||
22 | the lessor-owner to
comply with the leasing requirements | ||||||
23 | prescribed by
this Section or by the declaration, bylaws, | ||||||
24 | and
rules and regulations. The board of managers may | ||||||
25 | proceed directly against a
tenant, at law or in equity, or | ||||||
26 | under the provisions of Article IX of the
Code of Civil |
| |||||||
| |||||||
1 | Procedure, for any other breach by tenant of any
| ||||||
2 | covenants, rules, regulations or bylaws.
| ||||||
3 | (o) The association shall have no authority to forbear | ||||||
4 | the payment
of assessments by any unit owner.
| ||||||
5 | (p) That when 30% or fewer of the units, by number,
| ||||||
6 | possess over 50% in the aggregate of the votes in the | ||||||
7 | association,
any percentage vote of members specified | ||||||
8 | herein or in the condominium
instruments shall require the | ||||||
9 | specified percentage by number of units
rather than by | ||||||
10 | percentage of interest in the common elements allocated
to | ||||||
11 | units that would otherwise be applicable and garage units | ||||||
12 | or storage units, or both, shall have, in total, no more | ||||||
13 | votes than their aggregate percentage of ownership in the | ||||||
14 | common elements; this shall mean that if garage units or | ||||||
15 | storage units, or both, are to be given a vote, or portion | ||||||
16 | of a vote, that the association must add the total number | ||||||
17 | of votes cast of garage units, storage units, or both, and | ||||||
18 | divide the total by the number of garage units, storage | ||||||
19 | units, or both, and multiply by the aggregate percentage | ||||||
20 | of ownership of garage units and storage units to | ||||||
21 | determine the vote, or portion of a vote, that garage | ||||||
22 | units or storage units, or both, have. For purposes of | ||||||
23 | this subsection (p), when making a determination of | ||||||
24 | whether 30% or fewer of the units, by number, possess over | ||||||
25 | 50% in the aggregate of the votes in the association, a | ||||||
26 | unit shall not include a garage unit or a storage unit.
|
| |||||||
| |||||||
1 | (q) That a unit owner may not assign, delegate, | ||||||
2 | transfer, surrender, or
avoid the duties, | ||||||
3 | responsibilities, and liabilities of a unit owner under | ||||||
4 | this
Act, the condominium instruments, or the rules and | ||||||
5 | regulations of the
Association; and that such an attempted | ||||||
6 | assignment, delegation, transfer,
surrender, or avoidance | ||||||
7 | shall be deemed void.
| ||||||
8 | The provisions of this Section are applicable to all | ||||||
9 | condominium
instruments recorded under this Act. Any portion | ||||||
10 | of a condominium
instrument which contains provisions contrary | ||||||
11 | to these provisions shall be
void as against public policy and | ||||||
12 | ineffective. Any such instrument which
fails to contain the | ||||||
13 | provisions required by this Section shall be deemed to
| ||||||
14 | incorporate such provisions by operation of law.
| ||||||
15 | (Source: P.A. 102-162, eff. 1-1-22 .)
| ||||||
16 | (765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
| ||||||
17 | Sec. 18.5. Master Associations.
| ||||||
18 | (a) If the declaration, other condominium instrument, or | ||||||
19 | other duly
recorded covenants provide that any of the powers | ||||||
20 | of the unit owners
associations are to be exercised by or may | ||||||
21 | be delegated to a nonprofit
corporation or unincorporated | ||||||
22 | association that exercises
those or other powers on behalf of | ||||||
23 | one or more condominiums, or for the
benefit of the unit owners | ||||||
24 | of one or more condominiums, such
corporation or association | ||||||
25 | shall be a master association.
|
| |||||||
| |||||||
1 | (b) There shall be included in the declaration, other
| ||||||
2 | condominium instruments, or other duly recorded covenants | ||||||
3 | establishing
the powers and duties of the master association | ||||||
4 | the provisions set forth in
subsections (c) through (h).
| ||||||
5 | In interpreting subsections (c) through (h), the courts | ||||||
6 | should
interpret these provisions so that they are interpreted | ||||||
7 | consistently with
the similar parallel provisions found in | ||||||
8 | other parts of this Act.
| ||||||
9 | (c) Meetings and finances.
| ||||||
10 | (1) Each unit owner of a condominium subject to the | ||||||
11 | authority of
the board of the master association shall | ||||||
12 | receive, at least 30 days prior
to the adoption thereof by | ||||||
13 | the board of the master association, a copy of
the | ||||||
14 | proposed annual budget.
| ||||||
15 | (2) The board of the master association shall annually | ||||||
16 | supply to
all unit owners of condominiums subject to the | ||||||
17 | authority of the board
of the master association an | ||||||
18 | itemized accounting of the common
expenses for the | ||||||
19 | preceding year actually incurred or paid, together with a
| ||||||
20 | tabulation of the amounts collected pursuant to the budget | ||||||
21 | or assessment,
and showing the net excess or deficit of | ||||||
22 | income over expenditures plus
reserves.
| ||||||
23 | (3) Each unit owner of a condominium subject to the | ||||||
24 | authority of
the board of the master association shall | ||||||
25 | receive written notice mailed
or delivered no less than 10 | ||||||
26 | and no more than 30 days prior to any meeting
of the board |
| |||||||
| |||||||
1 | of the master association concerning the adoption of the | ||||||
2 | proposed
annual budget or any increase in the budget, or | ||||||
3 | establishment of an
assessment.
| ||||||
4 | (4) Meetings of the board of the master association | ||||||
5 | shall be open
to any unit owner in a condominium subject to | ||||||
6 | the authority of the board
of the master association, | ||||||
7 | except for the portion of any meeting held:
| ||||||
8 | (A) to discuss litigation when an action against | ||||||
9 | or on behalf of the
particular master association has | ||||||
10 | been filed and is pending in a court or
administrative | ||||||
11 | tribunal, or when the board of the master association | ||||||
12 | finds
that such an action is probable or imminent,
| ||||||
13 | (B) to consider information regarding appointment, | ||||||
14 | employment or
dismissal of an employee, or
| ||||||
15 | (C) to discuss violations of rules and regulations | ||||||
16 | of the master
association or unpaid common expenses | ||||||
17 | owed to the master association.
| ||||||
18 | Any vote on these matters shall be taken at a meeting or | ||||||
19 | portion thereof
open to any unit owner of a condominium | ||||||
20 | subject to the authority of the
master association.
| ||||||
21 | Any unit owner may record the proceedings at meetings | ||||||
22 | required
to be open by this Act by tape, film or other | ||||||
23 | means; the board may
prescribe reasonable rules and | ||||||
24 | regulations to govern the right to make such
recordings. | ||||||
25 | Notice of meetings shall be mailed or delivered at least | ||||||
26 | 48
hours prior thereto, unless a written waiver of such |
| |||||||
| |||||||
1 | notice is signed by
the persons entitled to notice before | ||||||
2 | the meeting is convened. Copies of
notices of meetings of | ||||||
3 | the board of the master association shall be posted
in | ||||||
4 | entranceways, elevators, or other conspicuous places in | ||||||
5 | the condominium
at least 48 hours prior to the meeting of | ||||||
6 | the board of the master
association. Where there is no | ||||||
7 | common entranceway for 7 or more units, the
board of the | ||||||
8 | master association may designate one or more locations in | ||||||
9 | the
proximity of these units where the notices of meetings | ||||||
10 | shall be posted.
| ||||||
11 | (5) If the declaration provides for election by unit | ||||||
12 | owners of members
of the board of directors in the event of | ||||||
13 | a resale of a unit in the master
association, the | ||||||
14 | purchaser of a unit from a seller other than the developer
| ||||||
15 | pursuant to an installment sales contract for purchase | ||||||
16 | shall, during such
times as he or she resides in the unit, | ||||||
17 | be counted toward a quorum for
purposes of election of | ||||||
18 | members of the board of directors at any
meeting of the | ||||||
19 | unit owners called for purposes of electing members of the
| ||||||
20 | board, and shall have the right to vote for the election of | ||||||
21 | members of
the board of directors and to be elected to and | ||||||
22 | serve on the board of
directors unless the seller | ||||||
23 | expressly retains in writing
any or all of those rights. | ||||||
24 | In no event may the seller and
purchaser both be counted | ||||||
25 | toward a quorum, be permitted to vote for a
particular | ||||||
26 | office, or be elected and serve on the board. Satisfactory
|
| |||||||
| |||||||
1 | evidence of the installment sales contract shall be made | ||||||
2 | available to the
association or its agents. For purposes | ||||||
3 | of this subsection, "installment sales
contract" shall | ||||||
4 | have the same meaning as set forth in Section 5 of the | ||||||
5 | Installment Sales Contract Act and subsection (e) of
| ||||||
6 | Section 1 of the Dwelling Unit Installment Contract Act.
| ||||||
7 | (6) The board of the master association shall have the | ||||||
8 | authority to
establish and maintain a system of master | ||||||
9 | metering of public utility
services and to collect | ||||||
10 | payments in connection therewith, subject to the
| ||||||
11 | requirements of Section 1.5 of the Residential Property | ||||||
12 | Utility Service the Tenant Utility Payment Disclosure Act.
| ||||||
13 | (7) The board of the master association or a common | ||||||
14 | interest community
association shall have the power, after | ||||||
15 | notice and an opportunity to be heard,
to levy and collect | ||||||
16 | reasonable fines from members for violations of the
| ||||||
17 | declaration, bylaws, and rules and regulations of the | ||||||
18 | master association or
the common interest community | ||||||
19 | association. Nothing contained in this
subdivision (7) | ||||||
20 | shall give rise to a statutory lien for unpaid fines.
| ||||||
21 | (8) Other than attorney's fees, no fees pertaining to | ||||||
22 | the collection of a unit owner's financial obligation to | ||||||
23 | the Association, including fees charged by a manager or | ||||||
24 | managing agent, shall be added to and deemed a part of an | ||||||
25 | owner's respective share of the common expenses unless: | ||||||
26 | (i) the managing agent fees relate to the costs to collect |
| |||||||
| |||||||
1 | common expenses for the Association; (ii) the fees are set | ||||||
2 | forth in a contract between the managing agent and the | ||||||
3 | Association; and (iii) the authority to add the management | ||||||
4 | fees to an owner's respective share of the common expenses | ||||||
5 | is specifically stated in the declaration or bylaws of the | ||||||
6 | Association. | ||||||
7 | (d) Records.
| ||||||
8 | (1) The board of the master association shall maintain | ||||||
9 | the following
records of the association and make them | ||||||
10 | available for examination and
copying at convenient hours | ||||||
11 | of weekdays by any unit owners in a condominium
subject to | ||||||
12 | the authority of the board or their mortgagees and their | ||||||
13 | duly
authorized agents or attorneys:
| ||||||
14 | (i) Copies of the recorded declaration, other | ||||||
15 | condominium instruments,
other duly recorded covenants | ||||||
16 | and bylaws and any amendments, articles of
| ||||||
17 | incorporation of the master association, annual | ||||||
18 | reports and any rules and
regulations adopted by the | ||||||
19 | master association or its board shall
be available. | ||||||
20 | Prior to the organization of the master association, | ||||||
21 | the
developer shall maintain and make available the | ||||||
22 | records set forth in this
subdivision (d)(1) for | ||||||
23 | examination and copying.
| ||||||
24 | (ii) Detailed and accurate records in | ||||||
25 | chronological order of the
receipts and expenditures | ||||||
26 | affecting the common areas, specifying and
itemizing |
| |||||||
| |||||||
1 | the maintenance and repair expenses of the common | ||||||
2 | areas and any
other expenses incurred, and copies of | ||||||
3 | all contracts, leases, or other
agreements entered | ||||||
4 | into by the master association, shall be maintained.
| ||||||
5 | (iii) The minutes of all meetings of the master | ||||||
6 | association and the
board of the master association | ||||||
7 | shall be maintained for not less than 7 years.
| ||||||
8 | (iv) Ballots and proxies related thereto, if any, | ||||||
9 | for any election
held for the board of the master | ||||||
10 | association and for any other matters
voted on by the | ||||||
11 | unit owners shall be maintained for
not less than one | ||||||
12 | year.
| ||||||
13 | (v) Such other records of the master association | ||||||
14 | as are available
for inspection by members of a | ||||||
15 | not-for-profit corporation pursuant to
Section 107.75 | ||||||
16 | of the General Not For Profit Corporation Act of 1986 | ||||||
17 | shall
be maintained.
| ||||||
18 | (vi) With respect to units owned by a land trust, | ||||||
19 | if a trustee
designates in writing a person to cast | ||||||
20 | votes on behalf of the unit
owner, the designation | ||||||
21 | shall remain in effect until a subsequent document
is | ||||||
22 | filed with the association.
| ||||||
23 | (2) Where a request for records under this subsection | ||||||
24 | is made in writing
to the board of managers or its agent, | ||||||
25 | failure to provide the requested
record or to respond | ||||||
26 | within 30 days shall be deemed a denial by the board
of |
| |||||||
| |||||||
1 | directors.
| ||||||
2 | (3) A reasonable fee may be charged by the master | ||||||
3 | association or its
board for the cost of copying.
| ||||||
4 | (4) If the board of directors fails to provide records | ||||||
5 | properly
requested under subdivision (d)(1) within the
| ||||||
6 | time period provided in subdivision (d)(2), the
unit owner | ||||||
7 | may seek appropriate relief, including an award of
| ||||||
8 | attorney's fees and costs.
| ||||||
9 | (e) The board of directors shall have standing and | ||||||
10 | capacity to act in
a representative capacity in relation to | ||||||
11 | matters involving the common areas
of the master association | ||||||
12 | or more than one unit, on behalf of the unit
owners as their | ||||||
13 | interests may appear.
| ||||||
14 | (f) Administration of property prior to election of the | ||||||
15 | initial board
of directors.
| ||||||
16 | (1) Until the election, by the unit owners or the | ||||||
17 | boards of
managers of the underlying condominium | ||||||
18 | associations, of the initial board
of directors of a | ||||||
19 | master association whose declaration is recorded on
or | ||||||
20 | after August 10, 1990, the same rights, titles, powers, | ||||||
21 | privileges,
trusts, duties and obligations that are vested | ||||||
22 | in or imposed upon the board
of directors by this Act or in | ||||||
23 | the declaration or other duly recorded
covenant shall be | ||||||
24 | held and performed by the developer.
| ||||||
25 | (2) The election of the initial board of directors of | ||||||
26 | a master
association whose declaration is recorded on or |
| |||||||
| |||||||
1 | after August 10, 1990, by
the unit owners or the boards of | ||||||
2 | managers of the underlying condominium
associations, shall | ||||||
3 | be held not later than 60 days after the conveyance by
the | ||||||
4 | developer of 75% of the units, or 3 years after the | ||||||
5 | recording of the
declaration, whichever is earlier. The | ||||||
6 | developer shall give at least 21
days notice of the | ||||||
7 | meeting to elect the initial board of directors and
shall | ||||||
8 | upon request provide to any unit owner, within 3 working | ||||||
9 | days of the
request, the names, addresses, and weighted | ||||||
10 | vote of each unit owner entitled to vote at the
meeting. | ||||||
11 | Any unit owner shall upon receipt of the request be | ||||||
12 | provided with
the same
information, within 10 days of the | ||||||
13 | request, with respect to
each
subsequent meeting to elect | ||||||
14 | members of the board of directors.
| ||||||
15 | (3) If the initial board of directors of a master | ||||||
16 | association
whose declaration is recorded on or after | ||||||
17 | August 10, 1990 is not elected by
the unit owners or the | ||||||
18 | members of the underlying condominium association
board of | ||||||
19 | managers at the time established in subdivision (f)(2), | ||||||
20 | the
developer shall continue in office for a period of 30 | ||||||
21 | days, whereupon
written notice of his resignation shall be | ||||||
22 | sent to all of the unit owners
or members of the underlying | ||||||
23 | condominium board of managers entitled to vote
at an | ||||||
24 | election for members of the board of directors.
| ||||||
25 | (4) Within 60 days following the election of a | ||||||
26 | majority of the board
of directors, other than the |
| |||||||
| |||||||
1 | developer, by unit owners, the developer shall
deliver to | ||||||
2 | the board of directors:
| ||||||
3 | (i) All original documents as recorded or filed | ||||||
4 | pertaining to the
property, its administration, and | ||||||
5 | the association, such as the declaration,
articles of | ||||||
6 | incorporation, other instruments, annual reports, | ||||||
7 | minutes,
rules and regulations, and contracts, leases, | ||||||
8 | or other
agreements entered into by the association. | ||||||
9 | If any original documents are
unavailable, a copy may | ||||||
10 | be provided if certified by affidavit of the
| ||||||
11 | developer, or an officer or agent of the developer, as | ||||||
12 | being a complete
copy of the actual document recorded | ||||||
13 | 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 |
| |||||||
| |||||||
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 | ||||||
22 | court finds that any of the
required
deliveries were | ||||||
23 | not made within the required period, the board shall | ||||||
24 | be
entitled to recover
its reasonable attorneys' fees | ||||||
25 | and costs incurred from and after the date of
| ||||||
26 | expiration of
the 10 day demand.
|
| |||||||
| |||||||
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 | ||||||
5 | than the developer by or on behalf of unit owners or
| ||||||
6 | underlying condominium associations, the association or | ||||||
7 | the board of
directors, which extends for a period of more | ||||||
8 | than 2 years from the
recording of the declaration, shall | ||||||
9 | be subject to cancellation by more than
1/2 of the votes of | ||||||
10 | the unit owners, other than the developer, cast at a
| ||||||
11 | special meeting of members called for that purpose during | ||||||
12 | a period of 90
days prior to the expiration of the 2 year | ||||||
13 | period if the board of managers
is elected by the unit | ||||||
14 | owners, otherwise by more than 1/2 of the underlying
| ||||||
15 | condominium board of managers. At least 60 days prior to | ||||||
16 | the expiration of
the 2 year period, the board of | ||||||
17 | directors, or, if the board is still under
developer | ||||||
18 | control, then the board of managers or the developer shall | ||||||
19 | send
notice to every unit owner or underlying condominium | ||||||
20 | board of managers,
notifying them of this provision, of | ||||||
21 | what contracts, leases and other
agreements are affected, | ||||||
22 | and of the procedure for calling a meeting of the
unit | ||||||
23 | owners or for action by the underlying condominium board | ||||||
24 | of managers
for the purpose of acting to terminate such | ||||||
25 | contracts, leases or other
agreements. During the 90 day | ||||||
26 | period the other party to the contract,
lease, or other |
| |||||||
| |||||||
1 | agreement shall also have the right of 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 | ||||||
8 | association by a unit
owner other than the developer, the | ||||||
9 | owner shall obtain from
the board of directors and shall make | ||||||
10 | available for inspection to the
prospective purchaser, upon | ||||||
11 | demand, 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 | ||||||
16 | unpaid 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 | ||||||
21 | reserve for
replacement fund and any portion of such fund | ||||||
22 | earmarked for any specified
project by the board of | ||||||
23 | directors.
| ||||||
24 | (5) A copy of the statement of financial condition of | ||||||
25 | the association
for the last fiscal year for which such a | ||||||
26 | statement is available.
|
| |||||||
| |||||||
1 | (6) A statement of the status of any pending suits or | ||||||
2 | judgments in which
the association is a party.
| ||||||
3 | (7) A statement setting forth what insurance coverage | ||||||
4 | is provided for
all unit owners by the association.
| ||||||
5 | (8) A statement that any improvements or alterations | ||||||
6 | made to the unit,
or any part of the common areas assigned | ||||||
7 | thereto, by the prior unit owner
are in good faith | ||||||
8 | believed to be in compliance with the declaration of the
| ||||||
9 | master association.
| ||||||
10 | The principal officer of the unit owner's association or | ||||||
11 | such
other officer as is specifically designated shall furnish | ||||||
12 | the above
information when requested to do so in writing, | ||||||
13 | within
30 days of receiving the request.
| ||||||
14 | A reasonable fee covering the direct out-of-pocket cost of | ||||||
15 | copying
and providing such information may be charged
by the | ||||||
16 | association or its board of directors to the unit
seller for | ||||||
17 | providing the information.
| ||||||
18 | (g-1) The purchaser of a unit of a common interest | ||||||
19 | community at a judicial foreclosure sale, other than a | ||||||
20 | mortgagee, who takes possession of a unit of a common interest | ||||||
21 | community pursuant to a court order or a purchaser who | ||||||
22 | acquires title from a mortgagee shall have the duty to pay the | ||||||
23 | proportionate share, if any, of the common expenses for the | ||||||
24 | unit that would have become due in the absence of any | ||||||
25 | assessment acceleration during the 6 months immediately | ||||||
26 | preceding institution of an action to enforce the collection |
| |||||||
| |||||||
1 | of assessments and the court costs incurred by the association | ||||||
2 | in an action to enforce the collection that remain unpaid by | ||||||
3 | the owner during whose possession the assessments accrued. If | ||||||
4 | the outstanding assessments and the court costs incurred by | ||||||
5 | the association in an action to enforce the collection are | ||||||
6 | paid at any time during any action to enforce the collection of | ||||||
7 | assessments, the purchaser shall have no obligation to pay any | ||||||
8 | assessments that accrued before he or she acquired title. The | ||||||
9 | notice of sale of a unit of a common interest community under | ||||||
10 | subsection (c) of Section 15-1507 of the Code of Civil | ||||||
11 | Procedure shall state that the purchaser of the unit other | ||||||
12 | than a mortgagee shall pay the assessments and court costs | ||||||
13 | required by this subsection (g-1). | ||||||
14 | (h) Errors and omissions.
| ||||||
15 | (1) If there is an omission or error in the | ||||||
16 | declaration or other
instrument of the master association, | ||||||
17 | the master association may correct
the error or omission | ||||||
18 | by an amendment to the declaration or other
instrument, as | ||||||
19 | may be required to conform it to this Act, to any other
| ||||||
20 | applicable statute, or to the declaration. The amendment | ||||||
21 | shall be adopted
by vote of two-thirds of the members of | ||||||
22 | the board of directors or by a
majority vote of the unit | ||||||
23 | owners at a meeting called for that purpose,
unless the | ||||||
24 | Act or the declaration of the master association | ||||||
25 | specifically
provides for greater percentages or different | ||||||
26 | procedures.
|
| |||||||
| |||||||
1 | (2) If, through a scrivener's error, a unit has not | ||||||
2 | been
designated as owning an appropriate undivided share | ||||||
3 | of the common areas
or does not bear an appropriate share | ||||||
4 | of the common expenses, or if
all of the common expenses or | ||||||
5 | all of the common elements in
the condominium have not | ||||||
6 | been distributed in the declaration, so that the
sum total | ||||||
7 | of the shares of common areas which have been distributed | ||||||
8 | or the
sum total of the shares of the common expenses fail | ||||||
9 | to equal 100%, or if it
appears that more than 100% of the | ||||||
10 | common elements or common expenses have
been distributed, | ||||||
11 | the error may be corrected by operation of law by filing
an | ||||||
12 | amendment to the declaration, approved by vote of | ||||||
13 | two-thirds of the
members of the board of directors or a | ||||||
14 | majority vote of the unit owners at
a meeting called for | ||||||
15 | that purpose, which proportionately
adjusts all percentage | ||||||
16 | interests so that the total is equal to 100%,
unless the | ||||||
17 | declaration specifically provides for a different | ||||||
18 | procedure or
different percentage vote by the owners of | ||||||
19 | the units and the owners of
mortgages thereon affected by | ||||||
20 | modification being made in the undivided
interest in the | ||||||
21 | common areas, the number of votes in the unit owners
| ||||||
22 | association or the liability for common expenses | ||||||
23 | appertaining to the unit.
| ||||||
24 | (3) If an omission or error or a scrivener's error in | ||||||
25 | the
declaration or other instrument is corrected by vote | ||||||
26 | of two-thirds of
the members of the board of directors |
| |||||||
| |||||||
1 | pursuant to the authority established
in subdivisions | ||||||
2 | (h)(1) or (h)(2) of this Section, the board, upon
written | ||||||
3 | petition by unit owners with 20% of the votes of the | ||||||
4 | association or
resolutions adopted by the board of | ||||||
5 | managers or board of directors of the
condominium and | ||||||
6 | common interest community associations which select 20% of
| ||||||
7 | the members of the board of directors of the master | ||||||
8 | association, whichever
is applicable, received within 30 | ||||||
9 | days of the board action, shall call a
meeting of the unit | ||||||
10 | owners or the boards of the condominium and common
| ||||||
11 | interest community associations which select members of | ||||||
12 | the board of
directors of the master association within 30 | ||||||
13 | days of the filing of the
petition or receipt of the | ||||||
14 | condominium and common interest community
association | ||||||
15 | resolution to consider the board action. Unless a majority | ||||||
16 | of
the votes of the unit owners of the association are cast | ||||||
17 | at the meeting to
reject the action, or board of managers | ||||||
18 | or board of directors of
condominium and common interest | ||||||
19 | community associations which select over
50% of the | ||||||
20 | members of the board of the master association adopt | ||||||
21 | resolutions
prior to the meeting rejecting the action of | ||||||
22 | the board of directors of the
master association, it is | ||||||
23 | ratified whether or not a quorum is present.
| ||||||
24 | (4) The procedures for amendments set forth in this | ||||||
25 | subsection (h)
cannot be used if such an amendment would | ||||||
26 | materially or adversely affect
property rights of the unit |
| |||||||
| |||||||
1 | owners unless the affected unit owners consent
in writing. | ||||||
2 | This Section does not restrict the powers of the | ||||||
3 | association
to otherwise amend the declaration, bylaws, or | ||||||
4 | other condominium
instruments, but authorizes a simple | ||||||
5 | process of amendment requiring a
lesser vote for the | ||||||
6 | purpose of correcting defects, errors, or omissions
when | ||||||
7 | the property rights of the unit owners are not materially | ||||||
8 | or adversely
affected.
| ||||||
9 | (5) If there is an omission or error in the | ||||||
10 | declaration or other
instruments that may not be corrected | ||||||
11 | by an amendment procedure
set forth in subdivision (h)(1) | ||||||
12 | or (h)(2) of this Section, then
the circuit court in the | ||||||
13 | county in which the master
association is located shall | ||||||
14 | have jurisdiction to hear a petition of one or
more of the | ||||||
15 | unit owners thereon or of the association, to correct the | ||||||
16 | error
or omission, and the action may be a class action. | ||||||
17 | The court may require
that one or more methods of | ||||||
18 | correcting the error or omission be submitted
to the unit | ||||||
19 | owners to determine the most acceptable correction. All | ||||||
20 | unit
owners in the association must be joined as parties | ||||||
21 | to the action. Service
of process on owners may be by | ||||||
22 | publication, but the plaintiff shall furnish
all unit | ||||||
23 | owners not personally served with process with copies of | ||||||
24 | the
petition and final judgment of the court by certified | ||||||
25 | mail, return receipt
requested, at their last known | ||||||
26 | address.
|
| |||||||
| |||||||
1 | (6) Nothing contained in this Section shall be | ||||||
2 | construed to invalidate
any provision of a declaration | ||||||
3 | authorizing the developer to amend
an instrument prior to | ||||||
4 | the latest date on which the initial
membership meeting of | ||||||
5 | the unit owners must be held, whether or not it has
| ||||||
6 | actually been held, to bring the instrument into | ||||||
7 | compliance with the legal
requirements of the Federal | ||||||
8 | National Mortgage Association, the Federal Home
Loan | ||||||
9 | Mortgage Corporation, the Federal Housing Administration, | ||||||
10 | the United
States Veterans Administration or their | ||||||
11 | respective successors and assigns.
| ||||||
12 | (i) The provisions of subsections (c) through (h) are | ||||||
13 | applicable
to all declarations, other condominium instruments, | ||||||
14 | and other
duly recorded covenants establishing the powers and | ||||||
15 | duties of the master
association recorded under this Act. Any | ||||||
16 | portion of a declaration,
other condominium instrument, or | ||||||
17 | other duly recorded covenant establishing
the powers and | ||||||
18 | duties of a master association which contains provisions
| ||||||
19 | contrary to the provisions of subsection (c) through (h) shall | ||||||
20 | be void as
against public policy and ineffective. Any | ||||||
21 | declaration, other condominium
instrument, or other duly | ||||||
22 | recorded covenant establishing the powers and
duties of the | ||||||
23 | master association which fails to contain the provisions
| ||||||
24 | required by subsections (c) through (h) shall be deemed to | ||||||
25 | incorporate such
provisions by operation of law.
| ||||||
26 | (j) (Blank).
|
| |||||||
| |||||||
1 | (Source: P.A. 100-416, eff. 1-1-18 .)
| ||||||
2 | Section 15. The Rental Property Utility Service Act is | ||||||
3 | amended by changing the title of the Act and Section 0.01 and | ||||||
4 | by adding Section 1.5 as follows:
| ||||||
5 | (765 ILCS 735/Act title)
| ||||||
6 | An Act concerning residential providing remedies for | ||||||
7 | lessees in relation to the failure of lessors
to pay for | ||||||
8 | utility services.
| ||||||
9 | (765 ILCS 735/0.01) (from Ch. 80, par. 61)
| ||||||
10 | Sec. 0.01. Short title. This Act may be cited as the
| ||||||
11 | Residential Rental Property Utility Service Act.
| ||||||
12 | (Source: P.A. 86-1324.)
| ||||||
13 | (765 ILCS 735/1.5 new) | ||||||
14 | Sec. 1.5. Payment for master metered public utility | ||||||
15 | services. | ||||||
16 | (a) No landlord may demand payment for master metered | ||||||
17 | public utility services pursuant to a lease provision | ||||||
18 | providing for tenant payment of a proportionate share of | ||||||
19 | public utility service without the landlord first providing | ||||||
20 | the tenant with a copy in writing either as part of the lease | ||||||
21 | or another written agreement of the formula used by the | ||||||
22 | landlord for allocating the public utility payments among the |
| |||||||
| |||||||
1 | tenants. The total of payments under the formula for the | ||||||
2 | building as a whole for a billing period may not exceed the sum | ||||||
3 | demanded by the public utility. The formula shall include all | ||||||
4 | those that use that public utility service and may reflect | ||||||
5 | variations in apartment size or usage. The landlord shall also | ||||||
6 | make available to the tenant upon request a copy of the public | ||||||
7 | utility bill for any billing period for which payment is | ||||||
8 | demanded. Nothing herein shall preclude a landlord from | ||||||
9 | leasing property to a tenant, including the cost of utilities, | ||||||
10 | for a rental which does not segregate or allocate the cost of | ||||||
11 | the utilities. | ||||||
12 | (b) No condominium or common interest community | ||||||
13 | association may demand payment for master metered public | ||||||
14 | utility services from a unit owner of a proportionate share | ||||||
15 | for public utility service without the condominium or common | ||||||
16 | interest community association first providing the unit owner | ||||||
17 | with a copy in writing of the formula used by the association | ||||||
18 | for allocating the public utility payments among the unit | ||||||
19 | owners. The total of payments under the formula for the | ||||||
20 | association as a whole for the annual budgeted billing period | ||||||
21 | may not exceed the sum demanded by the public utility, | ||||||
22 | however, the board of directors of the association may direct | ||||||
23 | that any payments received by the association in excess of | ||||||
24 | actual utility bills be applied to other budgeted items having | ||||||
25 | a deficit, or be applied to the association's reserve fund, or | ||||||
26 | be credited to the account of the unit owners for the following |
| |||||||
| |||||||
1 | year's budget. The formula shall include all those that use | ||||||
2 | that public utility service and may reflect, but is not | ||||||
3 | limited to, percent interest, unit size, or usage. The | ||||||
4 | condominium or common interest community association shall | ||||||
5 | also make available to the unit owner upon request a copy of | ||||||
6 | the public utility bill for any billing period for which | ||||||
7 | payment is demanded. A condominium association shall have the | ||||||
8 | right to establish and maintain a system of master metering of | ||||||
9 | public utility services pursuant to Sections 18 and 18.5 of | ||||||
10 | the Condominium Property Act. A common interest community | ||||||
11 | association shall have the right to establish and maintain a | ||||||
12 | system of master metering of public utility services pursuant | ||||||
13 | to Section 1-45 of the Common Interest Community Association | ||||||
14 | Act.
|