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| Public Act 098-1135 | ||||
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AN ACT concerning condominium property.
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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 1. Short title. This Act may be cited as the | ||||
Condominium and Common Interest Community Ombudsperson Act. | ||||
Section 5. Applicability. This Act applies to all | ||||
condominium associations governed by the Condominium Property | ||||
Act and all common interest community associations governed by | ||||
the Common Interest Community Association Act. | ||||
Section 10. Findings. The General Assembly finds as | ||||
follows:
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(1) Managing condominium property or common interest | ||||
community property is a complex responsibility. Unit | ||||
owners and persons charged with managing condominium | ||||
property or common interest community property may have | ||||
little or no prior experience in managing real property, | ||||
operating a not-for-profit association or corporation, | ||||
complying with the laws governing condominium property or | ||||
common interest community property, and interpreting and | ||||
enforcing restrictions and rules imposed by applicable | ||||
instruments or covenants. Unit owners may not fully | ||||
understand their rights and obligations under the law or | ||||
applicable instruments or covenants. Mistakes and | ||
misunderstandings are inevitable and may lead to serious, | ||
costly, and divisive problems. This Act seeks to educate | ||
unit owners, condominium associations, common interest | ||
community associations, boards of managers, and boards of | ||
directors about the Condominium Property Act and the Common | ||
Interest Community Association Act. Effective education | ||
can prevent or reduce the severity of problems within a | ||
condominium or common interest community. | ||
(2) Anecdotal accounts of abuses within condominiums | ||
and common interest communities create continuing public | ||
demand for reform of condominium and common interest | ||
community property law. This results in frequent changes to | ||
the law, making it difficult to understand and apply, and | ||
imposes significant transitional costs on these | ||
communities statewide. By collecting empirical data on the | ||
nature and incidence of problems within these communities, | ||
this Act will provide a sound basis for prioritizing reform | ||
efforts, thereby increasing the stability of condominium | ||
and common interest community property law. | ||
Section 15. Definitions. As used in this Act:
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"Association" means a condominium association or common | ||
interest community association as defined in this Act.
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"Board of managers" or "board of directors" means:
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(1) a common interest community association's board of | ||
managers or board of directors, whichever is applicable; or
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(2) a condominium association's board of managers or | ||
board or directors, whichever is applicable.
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"Common interest community" means a property governed by | ||
the Common Interest Community Association Act.
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"Common interest community association" has the meaning | ||
ascribed to it in Section 1-5 of the Common Interest Community | ||
Association Act.
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"Condominium" means a property governed by the Condominium | ||
Property Act.
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"Condominium association" means an association in which | ||
membership is a condition of ownership or shareholder interest | ||
of a unit in a condominium, cooperative, townhouse, villa, or | ||
other residential unit which is part of a residential | ||
development plan and that is authorized to impose an | ||
assessment, rents, or other costs that may become a lien on the | ||
unit or lot, and includes a unit owners' association as defined | ||
in subsection (o) of Section 2 of the Condominium Property Act | ||
and a master association as defined in subsection (u) of | ||
Section 2 of the Condominium Property Act.
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"Declaration" has the meaning ascribed to it in:
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(1) Section 1-5 of the Common Interest Community | ||
Association Act; or
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(2) Section 2 of the Condominium Property Act.
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"Department" means the Department of Financial and | ||
Professional Regulation.
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"Director" means the Director of the Division of | ||
Professional Regulation.
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"Division" means the Division of Professional Regulation | ||
within the Department of Financial and Professional | ||
Regulation.
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"Office" means the Office of the Condominium and Common | ||
Interest Community Ombudsperson established under Section 20 | ||
of this Act.
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"Ombudsperson" means the Condominium and Common Interest | ||
Community Ombudsperson employed under Section 20 of this Act.
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"Person" includes a natural person, firm, association, | ||
organization, partnership, business trust, corporation, | ||
limited liability company, or public entity.
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"Secretary" means the Secretary of Financial and | ||
Professional Regulation.
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"Unit" means a part of the condominium property or common | ||
interest community property designed and intended for any type | ||
of independent use.
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"Unit owner" has the meaning ascribed to it in: | ||
(1) subsection (g) of Section 2 of the Condominium | ||
Property Act; or | ||
(2) Section 1-5 of the Common Interest Community | ||
Association Act. | ||
Section 20. Office of the Condominium and Common Interest | ||
Community Ombudsperson.
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(a) There is created in the Division of Professional | ||
Regulation within the Department of Financial and Professional | ||
Regulation, under the supervision and control of the Secretary, | ||
the Office of the Condominium and Common Interest Community | ||
Ombudsperson.
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(b) The Department shall employ an Ombudsperson and other | ||
persons as necessary to discharge the requirements of this Act. | ||
The Ombudsperson shall have the powers delegated to him or her | ||
by the Department, in addition to the powers set forth in this | ||
Act.
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(c) Information and advice provided by the Ombudsperson has | ||
no binding legal effect and is not subject to the rulemaking | ||
provisions of the Illinois Administrative Procedure Act. | ||
Section 25. Training and education.
On or before July 1, | ||
2018, the Ombudsperson shall offer training, educational | ||
materials, and courses to unit owners, associations, boards of | ||
managers, and boards of directors in subjects relevant to: (i) | ||
the operation and management of condominiums and common | ||
interest communities; and (ii) the Condominium Property Act and | ||
the Common Interest Community Association Act.
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Section 30. Website.
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(a) The Office shall maintain on the Department's website | ||
the following information:
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(1) the text of this Act, the Condominium Property Act, | ||
the Community Interest Community Association Act, and any | ||
other statute, administrative rule, or regulation that the | ||
Ombudsperson determines is relevant to the operation and | ||
management of a condominium association or common interest | ||
community association;
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(2) information concerning nonjudicial resolution of | ||
disputes that may arise within a condominium or common | ||
interest community;
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(3) a description of the services provided by the | ||
Ombudsperson and information on how to contact the | ||
Ombudsperson for assistance; and
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(4) any other information that the Ombudsperson | ||
determines is useful to unit owners, associations, boards | ||
of managers, and boards of directors.
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(b) The Office shall make the information described in | ||
subsection (a) of this Section available in printed form. | ||
Section 35. Written policy for resolving complaints.
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(a) Each association, except for those outlined in Section | ||
(b) of this Section, shall adopt a written policy for resolving | ||
complaints made by unit owners. The association shall make the | ||
policy available to all unit owners upon request. The policy | ||
must include:
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(1) a sample form on which a unit owner may make a | ||
complaint to the association;
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(2) a description of the process by which complaints | ||
shall be delivered to the association;
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(3) the association's timeline and manner of making | ||
final determinations in response to a unit owner's | ||
complaint; and | ||
(4) a requirement that the final determination made by | ||
the association in response to a unit owner's complaint be: | ||
(i) made in writing;
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(ii) made within a reasonable time after the unit | ||
owner's original complaint; and
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(iii) marked clearly and conspicuously as "final".
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(b) Common interest community associations exempt from the | ||
Common Interest Community Association Act are not required to | ||
have a written policy for resolving complaints. | ||
(c) No later than 180 days after the effective date of this | ||
Act, associations existing on the effective date of this Act, | ||
except for those identified in subsection (b) of this Section, | ||
must establish and adopt the policy required under this | ||
Section.
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(d) Associations first created after the effective date of | ||
this Act, except for those identified in subsection (b) of this | ||
Section, must establish and adopt the policy required under | ||
this Section at the time of initial registration as required by | ||
Section 65 of this Act.
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(e) A unit owner may not bring a request for assistance | ||
under Section 40 of this Act for an association's lack of or | ||
inadequacy of a written policy to resolve complaints, but may | ||
notify the Department in writing of the association's lack of | ||
or inadequacy of a written policy. An association that fails to | ||
comply with this Section is subject to subsection (g) of | ||
Section 65 of this Act.
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Section 40. Requests for assistance.
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(a) Beginning on July 1, 2019, unit owners meeting the | ||
requirements of this Section may make a written request, as | ||
outlined in subsection (f) of this Section, to the Ombudsperson | ||
for assistance in resolving a dispute between a unit owner and | ||
an association that involves a violation of the Condominium | ||
Property Act or the Common Interest Community Property Act.
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(b) The Ombudsperson shall not accept requests for | ||
resolutions of disputes with community association managers, | ||
supervising community association managers, or community | ||
association management firms, as defined in the Community | ||
Association Manager Licensing and Disciplinary Act.
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(c) The Ombudsperson shall not accept requests for | ||
resolutions of disputes for which there is a pending complaint | ||
filed in any court or administrative tribunal in any | ||
jurisdiction or for which arbitration or alternative dispute | ||
resolution is scheduled to occur or has previously occurred.
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(d) The assistance described in subsection (a) of this | ||
Section is available only to unit owners. In order for a unit | ||
owner to receive the assistance from the Ombudsperson described | ||
in subsection (a) of this Section, the unit owner must:
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(1) owe no outstanding assessments, fees, or funds to | ||
the association, unless the assessments, fees, or funds are | ||
central to the dispute;
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(2) allege a dispute that was initiated or initially | ||
occurred within the past 2 calendar years of the date of | ||
the request;
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(3) have made a written complaint pursuant to the unit | ||
owner's association's complaint policy, as outlined in | ||
Section 35, which alleges violations of the Condominium | ||
Property Act or the Common Interest Community Association | ||
Act;
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(4) have received a final and adverse decision from the | ||
association and attach a copy of the association's final | ||
adverse decision marked "final" to the request to the | ||
Ombudsperson; and
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(5) have filed the request within 30 days after the | ||
receipt of the association's final adverse decision.
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(e) A unit owner who has not received a response, marked | ||
"final", to his or her complaint from the association within a | ||
reasonable time may request assistance from the Ombudsperson | ||
pursuant to subsection (a) of this Section if the unit owner | ||
meets the requirements of items (1), (2), and (3) of subsection | ||
(d) of this Section. A unit owner may not request assistance | ||
from the Ombudsperson until at least 90 days after the initial | ||
written complaint was submitted to the association. The | ||
Ombudsperson may decline a unit owner's request for assistance | ||
on the basis that a reasonable time has not yet passed.
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(f) The request for assistance shall be in writing, on | ||
forms provided by the Office, and include the following:
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(1) the name, address, and contact information of the | ||
unit owner;
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(2) the name, address, and contact information of the | ||
association;
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(3) the applicable association governing documents | ||
unless the absence of governing documents is central to the | ||
dispute;
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(4) the date of the final adverse decision by the | ||
association;
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(5) a copy of the association's written complaint | ||
policy required under Section 35 of this Act;
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(6) a copy of the unit owner's complaint to the | ||
association with a specific reference to the alleged | ||
violations of the Condominium Property Act or the Common | ||
Interest Community Association Act;
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(7) documentation verifying the unit owner's ownership | ||
of a unit, such as a copy of a recorded deed or other | ||
document conferring title; and
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(8) a copy of the association's adverse decision marked | ||
"final", if applicable.
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(g) On receipt of a unit owner's request for assistance | ||
that the Department determines meets the requirements of this | ||
Section, the Ombudsperson shall, within the limits of the | ||
available resources, confer with the interested parties and | ||
assist in efforts to resolve the dispute by mutual agreement of | ||
the parties.
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(h) The Ombudsperson shall assist only opposing parties who | ||
mutually agree to participate in dispute resolution.
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(i) A unit owner is limited to one request for assistance | ||
per dispute. The meaning of dispute is to be broadly | ||
interpreted by the Department.
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(j) The Department has the authority to determine whether | ||
or not a final decision is adverse under paragraph (4) of | ||
subsection (d) of this Section.
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(k) The Department shall establish rules describing the | ||
time limit, method, and manner for dispute resolution.
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(l) A request under the Freedom of Information Act for | ||
information does not constitute a request for assistance under | ||
this Section.
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Section 45. Confidentiality. All information collected by | ||
the Department in the course of addressing a request for | ||
assistance pursuant to Section 40 shall be maintained for the | ||
confidential use of the Department and shall not be disclosed. | ||
The Department shall not disclose the information to anyone | ||
other than law enforcement officials or regulatory agencies | ||
that have an appropriate regulatory interest as determined by | ||
the Secretary. Information and documents disclosed to a | ||
federal, State, county, or local law enforcement agency shall | ||
not be disclosed by that agency for any purpose to any other | ||
agency or person. | ||
Section 50. Reports.
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(a) The Department shall submit an annual written report on | ||
the activities of the Office to the General Assembly, no later | ||
than October 1 of each year, with the initial report being due | ||
October 1, 2020. The report shall include all of the following:
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(1) annual workload and performance data, including | ||
the number of requests for assistance received, the manner | ||
in which requests were or were not resolved and the staff | ||
time required to resolve the requests. For each category of | ||
data, the report shall provide subtotals based on the type | ||
of question or dispute involved in the request; and
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(2) analysis of the most common and serious types of | ||
disputes within condominiums and common interest | ||
communities, along with any recommendations for statutory | ||
reform to reduce the frequency or severity of those | ||
disputes.
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Section 55. Registration.
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(a) Except as otherwise provided in subsections (d) and (f) | ||
of this Section, every association shall register with the | ||
Department in a form and manner specified by the Department. A | ||
registration shall be valid for 2 years. The initial | ||
registration for an association existing on the effective date | ||
of this Act is due one year after the effective date of this | ||
Act, or at such time as the Department has adopted rules and | ||
forms for registration, whichever is later.
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(b) Newly created associations required to register with | ||
the Department must register no later than 90 days after the | ||
association has assumed control of a property.
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(c) The Department may issue a certification of | ||
registration under this Act to any association that applies to | ||
the Department on forms provided by the Department and provides | ||
the following:
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(1) the business name of the association seeking | ||
registration;
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(2) the business address or addresses and contact | ||
information of the association seeking registration;
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(3) the name, address, and contact information for the | ||
association's authorized agent or management company and | ||
management company representative;
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(4) a certification that the applicant has a written | ||
policy for resolving complaints as required by Section 35 | ||
of this Act;
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(5) the initial date of recording of the declaration;
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(6) the recording number or book and page for the | ||
document that constitutes the declaration; and
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(7) a certification that the association will comply | ||
with all other requirements of this Act and rules | ||
established for the implementation of this Act.
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(d) This Section does not apply to a unit, or the owner | ||
thereof, if the unit is a timeshare property subject to the | ||
Real Estate Timeshare Act of 1999.
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(e) If any of the information submitted under subsection | ||
(c) of this Section changes, the association shall provide | ||
updated information to the Department no later than 60 days | ||
after the change.
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(f) A common interest community association is exempt from | ||
registration if it is exempt from the Common Interest Community | ||
Association Act.
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(g) If an association fails to initially register as | ||
provided in subsection (a) of this Section or fails to timely | ||
renew its registration, the Department may impose a late charge | ||
or late fee against the association. If an association fails to | ||
properly register within 2 years after the effective date of | ||
this Act, or fails to renew its registration on 3 or more | ||
occasions, the association is ineligible to impose or enforce a | ||
lien for common expenses or to pursue any action or employ any | ||
enforcement mechanism otherwise available to it in enforcement | ||
of a lien for common expenses until it is validly registered | ||
pursuant to this Section. A lien for common expenses previously | ||
filed during a period in which the association was registered | ||
pursuant to this Section shall not be extinguished by a lapse | ||
in the association's registration, nor shall the common expense | ||
debt reflected by the lien or court action be deemed invalid, | ||
but any pending enforcement proceedings related to the lien | ||
shall be suspended and any applicable time limits tolled until | ||
the association is again validly registered pursuant to this | ||
Section.
Nothing contained herein shall be deemed to invalidate | ||
any claim for common expenses or other enforcement mechanism, | ||
even if the claim arose while the association was not | ||
registered. | ||
Section 60. Rules. The Department may adopt rules for the | ||
administration and enforcement of this Act. Any rule adopted | ||
under this Act is subject to the rulemaking provisions of the | ||
Illinois Administrative Procedure Act. | ||
Section 65. State Lawsuit Immunity Act. Nothing in this Act | ||
shall be construed to constitute a waiver of the immunity of | ||
the State, Department, Division, Office, or Ombudsperson, or | ||
any officer, employee, or agent thereof under the State Lawsuit | ||
Immunity Act. | ||
Section 70. Repeal. This Act is repealed on July 1, 2021. | ||
Section 75. The Condominium Property Act is amended by | ||
adding Section 35 as follows: | ||
(765 ILCS 605/35 new) | ||
Sec. 35. Compliance with the Condominium and Common | ||
Interest Community Ombudsperson Act. Every unit owners' | ||
association must comply with the Condominium and Common | ||
Interest Community Ombudsperson Act and is subject to all | ||
provisions of the Condominium and Common Interest Community | ||
Ombudsperson Act. This Section is repealed July 1, 2021. | ||
Section 80. The Common Interest Community Association Act | ||
is amended by adding Section 1-90 as follows: | ||
(765 ILCS 160/1-90 new) | ||
Sec. 1-90. Compliance with the Condominium and Common | ||
Interest Community Ombudsperson Act. Every common interest | ||
community association, except for those exempt from this Act | ||
under Section 1-75, must comply with the Condominium and | ||
Community Interest Community Ombudsperson Act and is subject to | ||
all provisions of the Condominium and Community Interest | ||
Community Ombudsperson Act. This Section is repealed July 1, | ||
2021.
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Section 999. Effective date. This Act takes effect July 1, | ||
2016.
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