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| Public Act 096-0977 |
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Condominium Property Act is amended by | ||||
changing Section 18 as follows:
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(765 ILCS 605/18) (from Ch. 30, par. 318)
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Sec. 18. Contents of bylaws. The bylaws shall provide for | ||||
at least
the following:
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(a) (1) The election from among the unit owners of a board | ||||
of managers,
the number of persons constituting such board, | ||||
and that the terms of at
least one-third of the members of | ||||
the board shall expire annually and that
all members of the | ||||
board shall be elected at large.
If there are multiple | ||||
owners of a single unit, only one of the multiple
owners | ||||
shall be eligible to serve as a member of the board at any | ||||
one time.
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(2) the powers and duties of the board;
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(3) the compensation, if any, of the members of the | ||||
board;
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(4) the method of removal from office of members of the | ||||
board;
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(5) that the board may engage the services of a manager | ||||
or managing agent;
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(6) that each unit owner shall receive, at least 30 | ||
days prior to the
adoption thereof by the board of | ||
managers, a copy of the proposed annual
budget together | ||
with an indication of which portions are intended for
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reserves, capital expenditures or repairs or payment of | ||
real estate taxes;
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(7) that the board of managers shall annually supply to
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all unit owners an itemized accounting of the common | ||
expenses
for the preceding year actually incurred or paid, | ||
together
with an indication of which portions were for | ||
reserves, capital
expenditures or repairs or payment of | ||
real estate taxes and
with a tabulation of the amounts | ||
collected pursuant to the
budget or assessment, and showing | ||
the net excess or
deficit of income over expenditures plus | ||
reserves;
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(8) (i) that each unit owner shall receive notice, in | ||
the same manner
as is provided in this Act for membership | ||
meetings, of any meeting of the
board of managers | ||
concerning the adoption of the proposed annual budget and
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regular assessments pursuant thereto or to adopt a separate | ||
(special)
assessment, (ii) that except as provided in | ||
subsection (iv) below, if an
adopted
budget or any separate | ||
assessment adopted by the board would result in the
sum of | ||
all regular and separate assessments payable in the current | ||
fiscal year
exceeding 115% of the sum of all regular and | ||
separate
assessments payable during the
preceding fiscal | ||
year, the
board of managers, upon written petition by unit | ||
owners with 20 percent of
the votes of the association | ||
delivered to the board within 14
days of the board action,
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shall call a meeting of the unit owners within 30 days of | ||
the date of
delivery of the petition to consider the budget | ||
or separate
assessment; unless a
majority of
the total | ||
votes of the unit owners are cast at the meeting to reject | ||
the
budget or separate assessment,
it is ratified, (iii) | ||
that any common expense not set forth in the budget or
any | ||
increase in assessments over the amount adopted in the | ||
budget shall be
separately assessed against all unit | ||
owners, (iv) that separate assessments for
expenditures | ||
relating to emergencies or mandated by law may be adopted | ||
by the
board of managers without being subject to unit | ||
owner approval or the
provisions of item (ii) above or item | ||
(v) below. As used
herein, "emergency" means an immediate | ||
danger to the structural integrity of
the
common elements | ||
or to the life, health, safety or property of the unit | ||
owners,
(v) that assessments
for additions and alterations | ||
to the common elements or to association-owned
property not | ||
included in the adopted annual budget, shall be separately
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assessed and are subject to approval of two-thirds of the | ||
total votes of all
unit owners, (vi) that the board of | ||
managers may adopt separate assessments
payable over more | ||
than one fiscal year. With respect to multi-year | ||
assessments
not governed by items (iv) and (v), the entire | ||
amount of the multi-year
assessment shall be deemed | ||
considered and authorized in the first fiscal year
in which | ||
the assessment is approved;
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(9) that meetings of the board of managers shall be | ||
open to any unit
owner, except for the portion of any | ||
meeting held (i) to discuss litigation
when an action | ||
against or on behalf of the particular association has been
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filed and is pending in a court or administrative tribunal,
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or when the board of managers finds that such an action is | ||
probable
or imminent, (ii) to consider information | ||
regarding appointment, employment
or dismissal of an | ||
employee, or (iii) to discuss violations of rules and
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regulations of the association or a unit owner's unpaid | ||
share of common
expenses; that any vote on these matters | ||
shall be taken at a meeting or
portion thereof open to any | ||
unit owner; that any unit owner may record the
proceedings | ||
at meetings or portions thereof required to be open by this
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Act by tape, film or other means; that the board may | ||
prescribe reasonable
rules and regulations to govern the | ||
right to make such recordings, that
notice of such meetings | ||
shall be mailed or delivered at least 48 hours
prior | ||
thereto, unless a written waiver of such notice is signed | ||
by the
person or persons entitled to such notice pursuant | ||
to the declaration,
bylaws, other condominium instrument, | ||
or provision of law other than this
subsection before the | ||
meeting is convened, and that copies of notices of
meetings | ||
of the board of managers shall be posted in entranceways,
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elevators, or other conspicuous places in the condominium | ||
at least 48 hours
prior to the meeting of the board of | ||
managers except where there is no
common entranceway for 7 | ||
or more units, the board of managers may designate
one or | ||
more locations in the proximity of these units where the | ||
notices of
meetings shall be posted;
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(10) that the board shall meet at least 4 times | ||
annually;
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(11) that no member of the board or officer shall be | ||
elected for a term
of more than 2 years, but that officers | ||
and board members may succeed
themselves;
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(12) the designation of an officer to mail and receive | ||
all notices and
execute amendments to condominium | ||
instruments as provided for in this Act
and in the | ||
condominium instruments;
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(13) the method of filling vacancies on the board
which | ||
shall include authority for the remaining members of the | ||
board to
fill the vacancy by two-thirds vote until the next | ||
annual meeting of unit
owners or for a period terminating | ||
no later than 30 days following the
filing of a petition | ||
signed by unit owners holding 20% of the votes of the
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association requesting a meeting of the unit owners to fill | ||
the vacancy for
the balance of the term, and that a meeting | ||
of the unit owners shall be
called for purposes of filling | ||
a vacancy on the board no later than 30 days
following the | ||
filing of a petition signed by unit owners holding 20% of | ||
the
votes of the association requesting such a meeting, and | ||
the method of filling
vacancies among the officers that | ||
shall include the authority for the members
of the board to | ||
fill the vacancy for the unexpired portion of the term;
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(14) what percentage of the board of managers, if other | ||
than a majority,
shall constitute a quorum;
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(15) provisions concerning notice of board meetings to | ||
members of the
board;
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(16) the board of managers may not enter into a | ||
contract with a
current board member
or with a corporation | ||
or partnership in which a board
member or a member of the | ||
board member's immediate family has 25% or
more interest, | ||
unless notice of intent to enter the
contract is given to | ||
unit owners within 20 days after a decision is made
to | ||
enter into the contract and the unit owners are
afforded an | ||
opportunity by filing a petition, signed by 20% of the unit
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owners, for an election to approve or disapprove the | ||
contract;
such petition shall be filed within 20 days after | ||
such notice and such
election shall be held within 30 days | ||
after filing the petition; for purposes
of this subsection, | ||
a board member's immediate family means the board member's
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spouse, parents, and children;
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(17) that the board of managers may disseminate
to unit | ||
owners biographical and background information about | ||
candidates for
election to the board if (i) reasonable | ||
efforts to identify all candidates are
made and all | ||
candidates are given an opportunity to include | ||
biographical and
background information in the information | ||
to be disseminated; and (ii) the
board does not express a | ||
preference in favor of any candidate;
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(18) any proxy distributed for board elections
by the | ||
board of managers gives unit owners the
opportunity to | ||
designate any person as the proxy holder, and gives the | ||
unit
owner the opportunity to express a preference for any | ||
of the known
candidates for the board or to write in a | ||
name;
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(19) that special meetings of the board of managers can | ||
be called by
the president or 25% of the members of the | ||
board; and
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(20) that the board of managers may establish
and | ||
maintain a system of master metering of public utility | ||
services and
collect payments in connection therewith, | ||
subject to the requirements of the
Tenant Utility Payment | ||
Disclosure Act.
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(b) (1) What percentage of the unit owners, if other than | ||
20%, shall
constitute a quorum provided that, for | ||
condominiums with 20 or more units,
the percentage of unit | ||
owners constituting a quorum shall be 20% unless the
unit | ||
owners holding a majority of the percentage interest in the
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association provide for a higher percentage, provided that | ||
in voting on amendments to the association's bylaws, a unit | ||
owner who is in arrears on the unit owner's regular or | ||
separate assessments for 60 days or more, shall not be | ||
counted for purposes of determining if a quorum is present, | ||
but that unit owner retains the right to vote on amendments | ||
to the association's bylaws;
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(2) that the association shall have one class of | ||
membership;
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(3) that the members shall hold an annual meeting, one | ||
of the purposes
of which shall be to elect members of the | ||
board of managers;
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(4) the method of calling meetings of the unit owners;
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(5) that special meetings of the members can be called | ||
by the president,
board of managers, or by 20% of unit | ||
owners;
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(6) that written notice of any membership meeting shall | ||
be mailed
or delivered giving members no less than 10 and | ||
no more than 30 days
notice of the time, place and purpose | ||
of such meeting;
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(7) that voting shall be on a percentage basis, and | ||
that the percentage
vote to which each unit is entitled is | ||
the percentage interest of the
undivided ownership of the | ||
common elements appurtenant thereto, provided
that the | ||
bylaws may provide for approval by unit owners in | ||
connection with
matters where the requisite approval on a | ||
percentage basis is not specified
in this Act, on the basis | ||
of one vote per unit;
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(8) that, where there is more than one owner of a unit, | ||
if only one
of the multiple owners is present at a meeting | ||
of the association, he is
entitled to cast all the votes | ||
allocated to that unit, if more than one of
the multiple | ||
owners are present, the votes allocated to that unit may be
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cast only in accordance with the agreement of a majority in | ||
interest of the
multiple owners, unless the declaration | ||
expressly provides otherwise, that
there is majority | ||
agreement if any one of the multiple owners cast the
votes | ||
allocated to that unit without protest being made promptly | ||
to the
person presiding over the meeting by any of the | ||
other owners of the unit;
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(9)(A) that unless the Articles of Incorporation or the | ||
bylaws
otherwise
provide, and except as provided in | ||
subparagraph (B) of this paragraph (9) in
connection with | ||
board elections,
a unit owner may vote by proxy executed in | ||
writing by the unit
owner or by his duly authorized | ||
attorney in fact; that the proxy must bear the date of
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execution
and, unless the condominium instruments or the | ||
written proxy itself provide
otherwise, is
invalid after 11 | ||
months from the date of its execution;
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(B) that if a rule adopted at least 120 days before a | ||
board election
or the
declaration or bylaws provide for | ||
balloting as set forth in this subsection,
unit
owners may | ||
not vote by proxy in board elections, but may vote only (i) | ||
by
submitting an association-issued ballot in person at the | ||
election meeting or
(ii) by
submitting an | ||
association-issued ballot to the association or its | ||
designated
agent
by mail or other means of delivery | ||
specified in the declaration, bylaws, or
rule; that
the | ||
ballots shall be mailed or otherwise distributed to unit | ||
owners not less
than 10
and not more than 30 days before | ||
the election meeting, and the board shall give
unit owners | ||
not less than 21 days' prior written notice of the deadline | ||
for
inclusion of a candidate's name on the ballots; that | ||
the deadline shall be no
more
than 7 days before the | ||
ballots are mailed or otherwise distributed to unit
owners; | ||
that
every such ballot must include the names of all | ||
candidates who have given the
board or its authorized agent | ||
timely written notice of their candidacy and must
give the | ||
person casting the ballot the opportunity to cast votes for | ||
candidates
whose names do not appear on the ballot; that a | ||
ballot received by the
association
or
its designated agent | ||
after the close of voting shall not be counted; that a
unit
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owner
who submits a ballot by mail or other means of | ||
delivery specified in the
declaration, bylaws, or rule may | ||
request and cast a ballot in person at the
election
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meeting, and thereby void any ballot previously submitted | ||
by that unit owner;
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(C) that if a written petition by unit owners with at | ||
least 20% of the
votes of
the association is delivered to | ||
the board within 14 days after the board's
approval
of a | ||
rule adopted pursuant to subparagraph (B) of this paragraph | ||
(9), the board
shall call a meeting of the unit owners | ||
within 30 days after the date of
delivery of
the petition; | ||
that unless a majority of the total votes of the unit | ||
owners are
cast
at the
meeting to reject the rule, the rule | ||
is ratified;
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(10) that the association may, upon adoption of the | ||
appropriate rules by
the board of managers, conduct | ||
elections by secret ballot whereby the voting
ballot is | ||
marked only with the percentage interest for the unit and | ||
the vote
itself, provided that the board further adopt | ||
rules to verify the status of the
unit owner issuing a | ||
proxy or casting a ballot; and further, that a candidate
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for election to the board of managers or such
candidate's | ||
representative shall have the right to be present at the
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counting of ballots at such election;
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(11) that in the event of a resale of a condominium | ||
unit the purchaser
of a unit from a seller other than the | ||
developer pursuant to an installment
contract for purchase | ||
shall during such times as he or she resides in the
unit be | ||
counted toward a quorum for purposes of election of members | ||
of the
board of managers at any meeting of the unit owners | ||
called for purposes of
electing members of the board, shall | ||
have the right to vote for the
election of members of the | ||
board of managers and to be elected to and serve
on the | ||
board of managers unless the seller expressly retains in | ||
writing any
or all of such rights. In no event may the | ||
seller and purchaser both be
counted toward a quorum, be | ||
permitted to vote for a particular office or be
elected and | ||
serve on the board. Satisfactory evidence of the | ||
installment
contact shall be made available to the | ||
association or its agents. For
purposes of this subsection, | ||
"installment contact" shall have the same
meaning as set | ||
forth in Section 1 (e) of "An Act relating to installment
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contracts to sell dwelling structures", approved August | ||
11, 1967, as amended;
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(12) the method by which matters subject to the | ||
approval of unit owners
set forth in this Act, or in the | ||
condominium instruments, will be
submitted to the unit | ||
owners at special membership meetings called for such
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purposes; and
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(13) that matters subject to the affirmative vote of | ||
not less than 2/3
of the votes of unit owners at a meeting | ||
duly called for that purpose,
shall include, but not be | ||
limited to:
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(i) merger or consolidation of the association;
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(ii) sale, lease, exchange, or other disposition | ||
(excluding the mortgage
or pledge) of all, or | ||
substantially all of the property and assets of the
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association; and
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(iii) the purchase or sale of land or of units on | ||
behalf of all unit owners.
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(c) Election of a president from among the board of | ||
managers, who shall
preside over the meetings of the board of | ||
managers and of the unit owners.
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(d) Election of a secretary from among the board of | ||
managers, who shall
keep the minutes of all meetings
of the | ||
board of managers and of the unit owners and who shall, in | ||
general,
perform all the duties incident to the office of | ||
secretary.
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(e) Election of a treasurer from among the board of | ||
managers, who shall
keep the financial records and
books of | ||
account.
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(f) Maintenance, repair and replacement of the common | ||
elements and
payments therefor, including the method of | ||
approving payment vouchers.
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(g) An association with 30 or more units shall obtain and | ||
maintain
fidelity insurance covering persons who control or | ||
disburse funds of the
association for the maximum amount of | ||
coverage available to protect funds
in the custody or control | ||
of the association plus the association reserve
fund. All | ||
management companies which are responsible for the funds held | ||
or
administered by the association shall maintain and furnish | ||
to the
association a fidelity bond for the maximum amount of | ||
coverage available to
protect funds in the custody of the | ||
management company at any time. The
association shall bear the | ||
cost of the fidelity insurance and fidelity
bond, unless | ||
otherwise provided by contract between the association and a
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management company. The association shall be the direct obligee | ||
of any
such fidelity bond. A management company holding reserve | ||
funds of an
association shall at all times maintain a separate | ||
account for each
association, provided, however, that for | ||
investment purposes, the Board of
Managers of an association | ||
may authorize a management company to maintain
the | ||
association's reserve funds in a single interest bearing | ||
account with
similar funds of other associations. The | ||
management company shall at all
times maintain records | ||
identifying all moneys of each association in such
investment | ||
account. The management company may hold all operating funds of
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associations which it manages in a single operating account but | ||
shall at
all times maintain records identifying all moneys of | ||
each association in
such operating account. Such operating and | ||
reserve funds held by the
management company for the | ||
association shall not be subject to attachment
by any creditor | ||
of the management company.
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For the purpose of this subsection a management company | ||
shall be
defined as a person, partnership, corporation, or | ||
other legal entity
entitled to transact business on behalf of | ||
others, acting on behalf of or
as an agent for a unit owner, | ||
unit owners or association of unit owners for
the purpose of | ||
carrying out the duties, responsibilities, and other
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obligations necessary for the day to day operation and | ||
management of any
property subject to this Act. For purposes of | ||
this subsection, the term
"fiduciary insurance coverage" shall | ||
be defined as both a fidelity bond and
directors and officers | ||
liability coverage, the fidelity bond in the full
amount of | ||
association funds and association reserves that will be in the
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custody of the association, and the directors and officers | ||
liability
coverage at a level as shall be determined to be | ||
reasonable by the board of
managers, if not otherwise | ||
established by the declaration or by laws.
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Until one year after the effective date of this amendatory | ||
Act of 1985,
if a condominium association has reserves plus | ||
assessments in excess of
$250,000 and cannot reasonably obtain | ||
100% fidelity bond coverage for such
amount, then it must | ||
obtain a fidelity bond coverage of $250,000.
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(h) Method of estimating the amount of the annual budget, | ||
and the manner
of assessing and collecting from the unit owners | ||
their respective shares of
such estimated expenses, and of any | ||
other expenses lawfully agreed upon.
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(i) That upon 10 days notice to the manager or board of | ||
managers and
payment of a reasonable fee, any unit owner shall | ||
be furnished a statement
of his account setting forth the | ||
amount of any unpaid assessments or other
charges due and owing | ||
from such owner.
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(j) Designation and removal of personnel necessary for the | ||
maintenance,
repair and replacement of the common elements.
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(k) Such restrictions on and requirements respecting the | ||
use and
maintenance of the units and the use of the common | ||
elements, not set forth
in the declaration, as are designed to | ||
prevent unreasonable interference
with the use of their | ||
respective units and of the common elements by the
several unit | ||
owners.
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(l) Method of adopting and of amending administrative rules | ||
and
regulations governing the operation and use of the common | ||
elements.
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(m) The percentage of votes required to modify or amend the | ||
bylaws, but
each one of the particulars set forth in this | ||
section shall always be
embodied in the bylaws.
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(n) (i) The provisions of this Act, the declaration, | ||
bylaws, other
condominium instruments, and rules and | ||
regulations that relate to the use
of the individual unit or | ||
the common elements shall be applicable to
any person leasing a | ||
unit and shall be deemed to be incorporated in any
lease | ||
executed or renewed on or after the effective date of this | ||
amendatory
Act of 1984. (ii) With regard to any lease entered | ||
into subsequent to the
effective date of this amendatory Act of | ||
1989, the unit owner leasing the
unit shall deliver a copy of | ||
the signed lease to the board or if the
lease is oral, a | ||
memorandum of the lease, not later than the date of
occupancy | ||
or 10 days after the lease is signed, whichever occurs first. | ||
In
addition to any other remedies, by filing an action jointly | ||
against the
tenant and the unit owner, an association may seek | ||
to enjoin a tenant from
occupying a unit or seek to evict a | ||
tenant under the provisions of Article
IX of the Code of Civil | ||
Procedure for failure of the lessor-owner to
comply with the | ||
leasing requirements prescribed by
this Section or by the | ||
declaration, bylaws, and
rules and regulations. The board of | ||
managers may proceed directly against a
tenant, at law or in | ||
equity, or under the provisions of Article IX of the
Code of | ||
Civil Procedure, for any other breach by tenant of any
| ||
covenants, rules, regulations or bylaws.
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(o) The association shall have no authority to forbear the | ||
payment
of assessments by any unit owner.
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(p) That when 30% or fewer of the units, by number,
possess | ||
over 50% in the aggregate of the votes in the association,
any | ||
percentage vote of members specified herein or in the | ||
condominium
instruments shall require the specified percentage | ||
by number of units
rather than by percentage of interest in the | ||
common elements allocated
to units that would otherwise be | ||
applicable and garage units or storage units, or both, shall | ||
have, in total, no more votes than their aggregate percentage | ||
of ownership in the common elements; this shall mean that if | ||
garage units or storage units, or both, are to be given a vote, | ||
or portion of a vote, that the association must add the total | ||
number of votes cast of garage units, storage units, or both, | ||
and divide the total by the number of garage units, storage | ||
units, or both, and multiply by the aggregate percentage of | ||
ownership of garage units and storage units to determine the | ||
vote, or portion of a vote, that garage units or storage units, | ||
or both, have. For purposes of this subsection (p), when making | ||
a determination of whether 30% or fewer of the units, by | ||
number, possess over 50% in the aggregate of the votes in the | ||
association, a unit shall not include a garage unit or a | ||
storage unit.
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(q) That a unit owner may not assign, delegate, transfer, | ||
surrender, or
avoid the duties, responsibilities, and | ||
liabilities of a unit owner under this
Act, the condominium | ||
instruments, or the rules and regulations of the
Association; | ||
and that such an attempted assignment, delegation, transfer,
| ||
surrender, or avoidance shall be deemed void.
| ||
The provisions of this Section are applicable to all | ||
condominium
instruments recorded under this Act. Any portion of | ||
a condominium
instrument which contains provisions contrary to | ||
these provisions shall be
void as against public policy and | ||
ineffective. Any such instrument which
fails to contain the | ||
provisions required by this Section shall be deemed to
| ||
incorporate such provisions by operation of law.
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(Source: P.A. 95-624, eff. 6-1-08; 96-55, eff. 1-1-10.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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