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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 Condominium Property Act is amended by | |||||||||||||||||||
| 5 | changing Section 18 as follows:
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| 6 | (765 ILCS 605/18) (from Ch. 30, par. 318)
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| 7 | Sec. 18. Contents of bylaws. The bylaws shall provide for | |||||||||||||||||||
| 8 | at least
the following:
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| 9 | (a)(1) The election from among the unit owners of a board | |||||||||||||||||||
| 10 | of managers,
the number of persons constituting such board, and | |||||||||||||||||||
| 11 | that the terms of at
least one-third of the members of the | |||||||||||||||||||
| 12 | board shall expire annually and that
all members of the board | |||||||||||||||||||
| 13 | shall be elected at large.
If there are multiple owners of a | |||||||||||||||||||
| 14 | single unit, only one of the multiple
owners shall be eligible | |||||||||||||||||||
| 15 | to serve as a member of the board at any one time.
| |||||||||||||||||||
| 16 | (2) the powers and duties of the board;
| |||||||||||||||||||
| 17 | (3) the compensation, if any, of the members of the board;
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| 18 | (4) the method of removal from office of members of the | |||||||||||||||||||
| 19 | board;
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| 20 | (5) that the board may engage the services of a manager or | |||||||||||||||||||
| 21 | managing agent;
| |||||||||||||||||||
| 22 | (6) that each unit owner shall receive, at least 30 days | |||||||||||||||||||
| 23 | prior to the
adoption thereof by the board of managers, a copy | |||||||||||||||||||
| |||||||
| |||||||
| 1 | of the proposed annual
budget together with an indication of | ||||||
| 2 | which portions are intended for
reserves, capital expenditures | ||||||
| 3 | or repairs or payment of real estate taxes;
| ||||||
| 4 | (7) that the board of managers shall annually supply to
all | ||||||
| 5 | unit owners an itemized accounting of the common expenses
for | ||||||
| 6 | the preceding year actually incurred or paid, together
with an | ||||||
| 7 | indication of which portions were for reserves, capital
| ||||||
| 8 | expenditures or repairs or payment of real estate taxes and
| ||||||
| 9 | with a tabulation of the amounts collected pursuant to the
| ||||||
| 10 | budget or assessment, and showing the net excess or
deficit of | ||||||
| 11 | income over expenditures plus reserves;
| ||||||
| 12 | (8)(i) that each unit owner shall receive notice, in the | ||||||
| 13 | same manner
as is provided in this Act for membership meetings, | ||||||
| 14 | of any meeting of the
board of managers concerning the adoption | ||||||
| 15 | of the proposed annual budget and
regular assessments pursuant | ||||||
| 16 | thereto or to adopt a separate (special)
assessment, (ii) that | ||||||
| 17 | except as provided in subsection (iv) below, if an
adopted
| ||||||
| 18 | budget or any separate assessment adopted by the board would | ||||||
| 19 | result in the
sum of all regular and separate assessments | ||||||
| 20 | payable in the current fiscal year
exceeding 115% of the sum of | ||||||
| 21 | all regular and separate
assessments payable during the
| ||||||
| 22 | preceding fiscal year, the
board of managers, upon written | ||||||
| 23 | petition by unit owners with 20 percent of
the votes of the | ||||||
| 24 | association delivered to the board within 14
days of the board | ||||||
| 25 | action,
shall call a meeting of the unit owners within 30 days | ||||||
| 26 | of the date of
delivery of the petition to consider the budget | ||||||
| |||||||
| |||||||
| 1 | or separate
assessment; unless a
majority of
the total votes of | ||||||
| 2 | the unit owners are cast at the meeting to reject the
budget or | ||||||
| 3 | separate assessment,
it is ratified, (iii) that any common | ||||||
| 4 | expense not set forth in the budget or
any increase in | ||||||
| 5 | assessments over the amount adopted in the budget shall be
| ||||||
| 6 | separately assessed against all unit owners, (iv) that separate | ||||||
| 7 | assessments for
expenditures relating to emergencies or | ||||||
| 8 | mandated by law may be adopted by the
board of managers without | ||||||
| 9 | being subject to unit owner approval or the
provisions of item | ||||||
| 10 | (ii) above or item (v) below. As used
herein, "emergency" means | ||||||
| 11 | an immediate danger to the structural integrity of
the
common | ||||||
| 12 | elements or to the life, health, safety or property of the unit | ||||||
| 13 | owners,
(v) that assessments
for additions and alterations to | ||||||
| 14 | the common elements or to association-owned
property not | ||||||
| 15 | included in the adopted annual budget, shall be separately
| ||||||
| 16 | assessed and are subject to approval of two-thirds of the total | ||||||
| 17 | votes of all
unit owners, (vi) that the board of managers may | ||||||
| 18 | adopt separate assessments
payable over more than one fiscal | ||||||
| 19 | year. With respect to multi-year assessments
not governed by | ||||||
| 20 | items (iv) and (v), the entire amount of the multi-year
| ||||||
| 21 | assessment shall be deemed considered and authorized in the | ||||||
| 22 | first fiscal year
in which the assessment is approved;
| ||||||
| 23 | (9)(A) that every meeting meetings of the board of managers | ||||||
| 24 | shall be open to any unit
owner, except for the portion of any | ||||||
| 25 | meeting held (i) to discuss or consider information relating | ||||||
| 26 | to: (i) litigation
when an action against or on behalf of the | ||||||
| |||||||
| |||||||
| 1 | particular association has been
filed and is pending in a court | ||||||
| 2 | or administrative tribunal,
or when the board of managers finds | ||||||
| 3 | that such an action is probable
or imminent, (ii) to consider | ||||||
| 4 | information regarding appointment, employment
or dismissal of | ||||||
| 5 | an employee, or (iii) to discuss violations of rules and
| ||||||
| 6 | regulations of the association, or (iv) a unit owner's unpaid | ||||||
| 7 | share of common
expenses; that any vote on these matters | ||||||
| 8 | discussed or considered in closed session shall take place be | ||||||
| 9 | taken at a meeting of the board of managers or
portion thereof | ||||||
| 10 | open to any unit owner; | ||||||
| 11 | (B) that board members may participate in and act at any | ||||||
| 12 | meeting of the board of managers in person, by telephonic | ||||||
| 13 | means, or by use of any acceptable technological means whereby | ||||||
| 14 | all persons participating in the meeting can communicate with | ||||||
| 15 | each other; that participation constitutes attendance and | ||||||
| 16 | presence in person at the meeting; | ||||||
| 17 | (C) that any unit owner may record the
proceedings at | ||||||
| 18 | meetings of the board of managers or portions thereof required | ||||||
| 19 | to be open by this
Act by tape, film or other means, and ; that | ||||||
| 20 | the board may prescribe reasonable
rules and regulations to | ||||||
| 21 | govern the right to make such recordings; , | ||||||
| 22 | (D) that
notice of every meeting of the board of managers | ||||||
| 23 | such meetings shall be given to every board member mailed or | ||||||
| 24 | delivered at least 48 hours
prior thereto, unless the board | ||||||
| 25 | member waives notice of the meeting pursuant to subsection (a) | ||||||
| 26 | of Section 18.8; a written waiver of such notice is signed by | ||||||
| |||||||
| |||||||
| 1 | the
person or persons entitled to such notice pursuant to the | ||||||
| 2 | declaration,
bylaws, other condominium instrument, or | ||||||
| 3 | provision of law other than this
subsection before the meeting | ||||||
| 4 | is convened, and | ||||||
| 5 | (E) that notice copies of notices of every meeting
meetings | ||||||
| 6 | of the board of managers shall be posted in entranceways,
| ||||||
| 7 | elevators, or other conspicuous places in the condominium at | ||||||
| 8 | least 48 hours
prior to the meeting of the board of managers | ||||||
| 9 | except where there is no
common entranceway for 7 or more | ||||||
| 10 | units, the board of managers may designate
one or more | ||||||
| 11 | locations in the proximity of these units where the notices of
| ||||||
| 12 | meetings shall be posted; that notice of every meeting of the | ||||||
| 13 | board of managers shall also be given at least 48 hours prior | ||||||
| 14 | to the meeting, or such longer notice as this Act may | ||||||
| 15 | separately require, to: (i) each unit owner who has provided | ||||||
| 16 | the association with written authorization to conduct business | ||||||
| 17 | by acceptable technological means, and (ii) to the extent that | ||||||
| 18 | the condominium instruments of an association require, to each | ||||||
| 19 | other unit owner, as required by subsection (f) of Section | ||||||
| 20 | 18.8, by mail or delivery, and that no other notice of a | ||||||
| 21 | meeting of the board of managers need be given to any unit | ||||||
| 22 | owner;
| ||||||
| 23 | (10) that the board shall meet at least 4 times annually;
| ||||||
| 24 | (11) that no member of the board or officer shall be | ||||||
| 25 | elected for a term
of more than 2 years, but that officers and | ||||||
| 26 | board members may succeed
themselves;
| ||||||
| |||||||
| |||||||
| 1 | (12) the designation of an officer to mail and receive all | ||||||
| 2 | notices and
execute amendments to condominium instruments as | ||||||
| 3 | provided for in this Act
and in the condominium instruments;
| ||||||
| 4 | (13) the method of filling vacancies on the board
which | ||||||
| 5 | shall include authority for the remaining members of the board | ||||||
| 6 | to
fill the vacancy by two-thirds vote until the next annual | ||||||
| 7 | meeting of unit
owners or for a period terminating no later | ||||||
| 8 | than 30 days following the
filing of a petition signed by unit | ||||||
| 9 | owners holding 20% of the votes of the
association requesting a | ||||||
| 10 | meeting of the unit owners to fill the vacancy for
the balance | ||||||
| 11 | of the term, and that a meeting of the unit owners shall be
| ||||||
| 12 | called for purposes of filling a vacancy on the board no later | ||||||
| 13 | than 30 days
following the filing of a petition signed by unit | ||||||
| 14 | owners holding 20% of the
votes of the association requesting | ||||||
| 15 | such a meeting, and the method of filling
vacancies among the | ||||||
| 16 | officers that shall include the authority for the members
of | ||||||
| 17 | the board to fill the vacancy for the unexpired portion of the | ||||||
| 18 | term;
| ||||||
| 19 | (14) what percentage of the board of managers, if other | ||||||
| 20 | than a majority,
shall constitute a quorum;
| ||||||
| 21 | (15) provisions concerning notice of board meetings to | ||||||
| 22 | members of the
board;
| ||||||
| 23 | (16) the board of managers may not enter into a contract | ||||||
| 24 | with a
current board member
or with a corporation or | ||||||
| 25 | partnership in which a board
member or a member of the board | ||||||
| 26 | member's immediate family has 25% or
more interest, unless | ||||||
| |||||||
| |||||||
| 1 | notice of intent to enter the
contract is given to unit owners | ||||||
| 2 | within 20 days after a decision is made
to enter into the | ||||||
| 3 | contract and the unit owners are
afforded an opportunity by | ||||||
| 4 | filing a petition, signed by 20% of the unit
owners, for an | ||||||
| 5 | election to approve or disapprove the contract;
such petition | ||||||
| 6 | shall be filed within 20 days after such notice and such
| ||||||
| 7 | election shall be held within 30 days after filing the | ||||||
| 8 | petition; for purposes
of this subsection, a board member's | ||||||
| 9 | immediate family means the board member's
spouse, parents, and | ||||||
| 10 | children;
| ||||||
| 11 | (17) that the board of managers may disseminate
to unit | ||||||
| 12 | owners biographical and background information about | ||||||
| 13 | candidates for
election to the board if (i) reasonable efforts | ||||||
| 14 | to identify all candidates are
made and all candidates are | ||||||
| 15 | given an opportunity to include biographical and
background | ||||||
| 16 | information in the information to be disseminated; and (ii) the
| ||||||
| 17 | board does not express a preference in favor of any candidate;
| ||||||
| 18 | (18) any proxy distributed for board elections
by the board | ||||||
| 19 | of managers gives unit owners the
opportunity to designate any | ||||||
| 20 | person as the proxy holder, and gives the unit
owner the | ||||||
| 21 | opportunity to express a preference for any of the known
| ||||||
| 22 | candidates for the board or to write in a name;
| ||||||
| 23 | (19) that special meetings of the board of managers can be | ||||||
| 24 | called by
the president or 25% of the members of the board; and
| ||||||
| 25 | (20) that the board of managers may establish
and maintain | ||||||
| 26 | a system of master metering of public utility services and
| ||||||
| |||||||
| |||||||
| 1 | collect payments in connection therewith, subject to the | ||||||
| 2 | requirements of the
Tenant Utility Payment Disclosure Act.
| ||||||
| 3 | (b)(1) What percentage of the unit owners, if other than | ||||||
| 4 | 20%, shall
constitute a quorum provided that, for condominiums | ||||||
| 5 | with 20 or more units,
the percentage of unit owners | ||||||
| 6 | constituting a quorum shall be 20% unless the
unit owners | ||||||
| 7 | holding a majority of the percentage interest in the
| ||||||
| 8 | association provide for a higher percentage, provided that in | ||||||
| 9 | voting on amendments to the association's bylaws, a unit owner | ||||||
| 10 | who is in arrears on the unit owner's regular or separate | ||||||
| 11 | assessments for 60 days or more, shall not be counted for | ||||||
| 12 | purposes of determining if a quorum is present, but that unit | ||||||
| 13 | owner retains the right to vote on amendments to the | ||||||
| 14 | association's bylaws;
| ||||||
| 15 | (2) that the association shall have one class of | ||||||
| 16 | membership;
| ||||||
| 17 | (3) that the members shall hold an annual meeting, one of | ||||||
| 18 | the purposes
of which shall be to elect members of the board of | ||||||
| 19 | managers;
| ||||||
| 20 | (4) the method of calling meetings of the unit owners;
| ||||||
| 21 | (5) that special meetings of the members can be called by | ||||||
| 22 | the president,
board of managers, or by 20% of unit owners;
| ||||||
| 23 | (6) that written notice of any membership meeting shall be | ||||||
| 24 | mailed
or delivered giving members no less than 10 and no more | ||||||
| 25 | than 30 days
notice of the time, place and purpose of such | ||||||
| 26 | meeting except that notice may be sent, to the extent the | ||||||
| |||||||
| |||||||
| 1 | condominium instruments or rules adopted thereunder expressly | ||||||
| 2 | so provide, by electronic transmission consented to by the unit | ||||||
| 3 | owner to whom the notice is given, provided the director and | ||||||
| 4 | officer or his agent certifies in writing to the delivery by | ||||||
| 5 | electronic transmission;
| ||||||
| 6 | (7) that voting shall be on a percentage basis, and that | ||||||
| 7 | the percentage
vote to which each unit is entitled is the | ||||||
| 8 | percentage interest of the
undivided ownership of the common | ||||||
| 9 | elements appurtenant thereto, provided
that the bylaws may | ||||||
| 10 | provide for approval by unit owners in connection with
matters | ||||||
| 11 | where the requisite approval on a percentage basis is not | ||||||
| 12 | specified
in this Act, on the basis of one vote per unit;
| ||||||
| 13 | (8) that, where there is more than one owner of a unit, if | ||||||
| 14 | only one
of the multiple owners is present at a meeting of the | ||||||
| 15 | association, he is
entitled to cast all the votes allocated to | ||||||
| 16 | that unit, if more than one of
the multiple owners are present, | ||||||
| 17 | the votes allocated to that unit may be
cast only in accordance | ||||||
| 18 | with the agreement of a majority in interest of the
multiple | ||||||
| 19 | owners, unless the declaration expressly provides otherwise, | ||||||
| 20 | that
there is majority agreement if any one of the multiple | ||||||
| 21 | owners cast the
votes allocated to that unit without protest | ||||||
| 22 | being made promptly to the
person presiding over the meeting by | ||||||
| 23 | any of the other owners of the unit;
| ||||||
| 24 | (9)(A) except as provided in subparagraph (B) of this | ||||||
| 25 | paragraph (9) in
connection with board elections, that
a unit | ||||||
| 26 | owner may vote by proxy executed in writing by the unit
owner | ||||||
| |||||||
| |||||||
| 1 | or by his duly authorized attorney in fact; that the proxy must | ||||||
| 2 | bear the date of
execution
and, unless the condominium | ||||||
| 3 | instruments or the written proxy itself provide
otherwise, is
| ||||||
| 4 | invalid after 11 months from the date of its execution; to the | ||||||
| 5 | extent the condominium instruments or rules adopted thereunder | ||||||
| 6 | expressly so provide, a vote or proxy may be submitted by | ||||||
| 7 | electronic transmission, provided that any such electronic | ||||||
| 8 | transmission shall either set forth or be submitted with | ||||||
| 9 | information from which it can be determined that the electronic | ||||||
| 10 | transmission was authorized by the unit owner or the unit | ||||||
| 11 | owner's proxy;
| ||||||
| 12 | (B) that if a rule adopted at least 120 days before a board | ||||||
| 13 | election
or the
declaration or bylaws provide for balloting as | ||||||
| 14 | set forth in this subsection,
unit
owners may not vote by proxy | ||||||
| 15 | in board elections, but may vote only (i) by
submitting an | ||||||
| 16 | association-issued ballot in person at the election meeting or
| ||||||
| 17 | (ii) by
submitting an association-issued ballot to the | ||||||
| 18 | association or its designated
agent
by mail or other means of | ||||||
| 19 | delivery specified in the declaration, bylaws, or
rule; that
| ||||||
| 20 | the ballots shall be mailed or otherwise distributed to unit | ||||||
| 21 | owners not less
than 10
and not more than 30 days before the | ||||||
| 22 | election meeting, and the board shall give
unit owners not less | ||||||
| 23 | than 21 days' prior written notice of the deadline for
| ||||||
| 24 | inclusion of a candidate's name on the ballots; that the | ||||||
| 25 | deadline shall be no
more
than 7 days before the ballots are | ||||||
| 26 | mailed or otherwise distributed to unit
owners; that
every such | ||||||
| |||||||
| |||||||
| 1 | ballot must include the names of all candidates who have given | ||||||
| 2 | the
board or its authorized agent timely written notice of | ||||||
| 3 | their candidacy and must
give the person casting the ballot the | ||||||
| 4 | opportunity to cast votes for candidates
whose names do not | ||||||
| 5 | appear on the ballot; that a ballot received by the
association
| ||||||
| 6 | or
its designated agent after the close of voting shall not be | ||||||
| 7 | counted; that a
unit
owner
who submits a ballot by mail or | ||||||
| 8 | other means of delivery specified in the
declaration, bylaws, | ||||||
| 9 | or rule may request and cast a ballot in person at the
election
| ||||||
| 10 | meeting, and thereby void any ballot previously submitted by | ||||||
| 11 | that unit owner; | ||||||
| 12 | (B-5) that if a rule adopted at least 120 days before a | ||||||
| 13 | board election or the declaration or bylaws provide for | ||||||
| 14 | balloting as set forth in this subparagraph, unit owners may | ||||||
| 15 | not vote by proxy in board elections, but may vote only (i) by | ||||||
| 16 | submitting an association-issued ballot in person at the | ||||||
| 17 | election meeting; or (ii) by any acceptable technological means | ||||||
| 18 | as defined in Section 2 of this Act; instructions regarding the | ||||||
| 19 | use of electronic means for voting shall be distributed to all | ||||||
| 20 | unit owners not less than 10 and not more than 30 days before | ||||||
| 21 | the election meeting, and the board shall give unit owners not | ||||||
| 22 | less than 21 days' prior written notice of the deadline for | ||||||
| 23 | inclusion of a candidate's name on the ballots; the deadline | ||||||
| 24 | shall be no more than 7 days before the instructions for voting | ||||||
| 25 | using electronic or acceptable technological means is | ||||||
| 26 | distributed to unit owners; every instruction notice must | ||||||
| |||||||
| |||||||
| 1 | include the names of all candidates who have given the board or | ||||||
| 2 | its authorized agent timely written notice of their candidacy | ||||||
| 3 | and must give the person voting through electronic or | ||||||
| 4 | acceptable technological means the opportunity to cast votes | ||||||
| 5 | for candidates whose names do not appear on the ballot; a unit | ||||||
| 6 | owner who submits a vote using electronic or acceptable | ||||||
| 7 | technological means may request and cast a ballot in person at | ||||||
| 8 | the election meeting, thereby voiding any vote previously | ||||||
| 9 | submitted by that unit owner;
| ||||||
| 10 | (C) that if a written petition by unit owners with at least | ||||||
| 11 | 20% of the
votes of
the association is delivered to the board | ||||||
| 12 | within 14 days after the board's
approval
of a rule adopted | ||||||
| 13 | pursuant to subparagraph (B) or subparagraph (B-5) of this | ||||||
| 14 | paragraph (9), the board
shall call a meeting of the unit | ||||||
| 15 | owners within 30 days after the date of
delivery of
the | ||||||
| 16 | petition; that unless a majority of the total votes of the unit | ||||||
| 17 | owners are
cast
at the
meeting to reject the rule, the rule is | ||||||
| 18 | ratified;
| ||||||
| 19 | (D) that votes cast by ballot under subparagraph (B) or | ||||||
| 20 | electronic or acceptable technological means under | ||||||
| 21 | subparagraph (B-5) of this paragraph (9) are valid for the | ||||||
| 22 | purpose of establishing a quorum;
| ||||||
| 23 | (10) that the association may, upon adoption of the | ||||||
| 24 | appropriate rules by
the board of managers, conduct elections | ||||||
| 25 | by secret ballot whereby the voting
ballot is marked only with | ||||||
| 26 | the percentage interest for the unit and the vote
itself, | ||||||
| |||||||
| |||||||
| 1 | provided that the board further adopt rules to verify the | ||||||
| 2 | status of the
unit owner issuing a proxy or casting a ballot; | ||||||
| 3 | and further, that a candidate
for election to the board of | ||||||
| 4 | managers or such
candidate's representative shall have the | ||||||
| 5 | right to be present at the
counting of ballots at such | ||||||
| 6 | election;
| ||||||
| 7 | (11) that in the event of a resale of a condominium unit | ||||||
| 8 | the purchaser
of a unit from a seller other than the developer | ||||||
| 9 | pursuant to an installment
contract for purchase shall during | ||||||
| 10 | such times as he or she resides in the
unit be counted toward a | ||||||
| 11 | quorum for purposes of election of members of the
board of | ||||||
| 12 | managers at any meeting of the unit owners called for purposes | ||||||
| 13 | of
electing members of the board, shall have the right to vote | ||||||
| 14 | for the
election of members of the board of managers and to be | ||||||
| 15 | elected to and serve
on the board of managers unless the seller | ||||||
| 16 | expressly retains in writing any
or all of such rights. In no | ||||||
| 17 | event may the seller and purchaser both be
counted toward a | ||||||
| 18 | quorum, be permitted to vote for a particular office or be
| ||||||
| 19 | elected and serve on the board. Satisfactory evidence of the | ||||||
| 20 | installment
contact shall be made available to the association | ||||||
| 21 | or its agents. For
purposes of this subsection, "installment | ||||||
| 22 | contact" shall have the same
meaning as set forth in Section 1 | ||||||
| 23 | (e) of "An Act relating to installment
contracts to sell | ||||||
| 24 | dwelling structures", approved August 11, 1967, as amended;
| ||||||
| 25 | (12) the method by which matters subject to the approval of | ||||||
| 26 | unit owners
set forth in this Act, or in the condominium | ||||||
| |||||||
| |||||||
| 1 | instruments, will be
submitted to the unit owners at special | ||||||
| 2 | membership meetings called for such
purposes; and
| ||||||
| 3 | (13) that matters subject to the affirmative vote of not | ||||||
| 4 | less than 2/3
of the votes of unit owners at a meeting duly | ||||||
| 5 | called for that purpose,
shall include, but not be limited to:
| ||||||
| 6 | (i) merger or consolidation of the association;
| ||||||
| 7 | (ii) sale, lease, exchange, or other disposition | ||||||
| 8 | (excluding the mortgage
or pledge) of all, or substantially | ||||||
| 9 | all of the property and assets of the
association; and
| ||||||
| 10 | (iii) the purchase or sale of land or of units on | ||||||
| 11 | behalf of all unit owners.
| ||||||
| 12 | (c) Election of a president from among the board of | ||||||
| 13 | managers, who shall
preside over the meetings of the board of | ||||||
| 14 | managers and of the unit owners.
| ||||||
| 15 | (d) Election of a secretary from among the board of | ||||||
| 16 | managers, who shall
keep the minutes of all meetings
of the | ||||||
| 17 | board of managers and of the unit owners and who shall, in | ||||||
| 18 | general,
perform all the duties incident to the office of | ||||||
| 19 | secretary.
| ||||||
| 20 | (e) Election of a treasurer from among the board of | ||||||
| 21 | managers, who shall
keep the financial records and
books of | ||||||
| 22 | account.
| ||||||
| 23 | (f) Maintenance, repair and replacement of the common | ||||||
| 24 | elements and
payments therefor, including the method of | ||||||
| 25 | approving payment vouchers.
| ||||||
| 26 | (g) An association with 30 or more units shall obtain and | ||||||
| |||||||
| |||||||
| 1 | maintain
fidelity insurance covering persons who control or | ||||||
| 2 | disburse funds of the
association for the maximum amount of | ||||||
| 3 | coverage available to protect funds
in the custody or control | ||||||
| 4 | of the association plus the association reserve
fund. All | ||||||
| 5 | management companies which are responsible for the funds held | ||||||
| 6 | or
administered by the association shall maintain and furnish | ||||||
| 7 | to the
association a fidelity bond for the maximum amount of | ||||||
| 8 | coverage available to
protect funds in the custody of the | ||||||
| 9 | management company at any time. The
association shall bear the | ||||||
| 10 | cost of the fidelity insurance and fidelity
bond, unless | ||||||
| 11 | otherwise provided by contract between the association and a
| ||||||
| 12 | management company. The association shall be the direct obligee | ||||||
| 13 | of any
such fidelity bond. A management company holding reserve | ||||||
| 14 | funds of an
association shall at all times maintain a separate | ||||||
| 15 | account for each
association, provided, however, that for | ||||||
| 16 | investment purposes, the Board of
Managers of an association | ||||||
| 17 | may authorize a management company to maintain
the | ||||||
| 18 | association's reserve funds in a single interest bearing | ||||||
| 19 | account with
similar funds of other associations. The | ||||||
| 20 | management company shall at all
times maintain records | ||||||
| 21 | identifying all moneys of each association in such
investment | ||||||
| 22 | account. The management company may hold all operating funds of
| ||||||
| 23 | associations which it manages in a single operating account but | ||||||
| 24 | shall at
all times maintain records identifying all moneys of | ||||||
| 25 | each association in
such operating account. Such operating and | ||||||
| 26 | reserve funds held by the
management company for the | ||||||
| |||||||
| |||||||
| 1 | association shall not be subject to attachment
by any creditor | ||||||
| 2 | of the management company.
| ||||||
| 3 | For the purpose of this subsection a management company | ||||||
| 4 | shall be
defined as a person, partnership, corporation, or | ||||||
| 5 | other legal entity
entitled to transact business on behalf of | ||||||
| 6 | others, acting on behalf of or
as an agent for a unit owner, | ||||||
| 7 | unit owners or association of unit owners for
the purpose of | ||||||
| 8 | carrying out the duties, responsibilities, and other
| ||||||
| 9 | obligations necessary for the day to day operation and | ||||||
| 10 | management of any
property subject to this Act. For purposes of | ||||||
| 11 | this subsection, the term
"fiduciary insurance coverage" shall | ||||||
| 12 | be defined as both a fidelity bond and
directors and officers | ||||||
| 13 | liability coverage, the fidelity bond in the full
amount of | ||||||
| 14 | association funds and association reserves that will be in the
| ||||||
| 15 | custody of the association, and the directors and officers | ||||||
| 16 | liability
coverage at a level as shall be determined to be | ||||||
| 17 | reasonable by the board of
managers, if not otherwise | ||||||
| 18 | established by the declaration or by laws.
| ||||||
| 19 | Until one year after the effective date of this amendatory | ||||||
| 20 | Act of 1985,
if a condominium association has reserves plus | ||||||
| 21 | assessments in excess of
$250,000 and cannot reasonably obtain | ||||||
| 22 | 100% fidelity bond coverage for such
amount, then it must | ||||||
| 23 | obtain a fidelity bond coverage of $250,000.
| ||||||
| 24 | (h) Method of estimating the amount of the annual budget, | ||||||
| 25 | and the manner
of assessing and collecting from the unit owners | ||||||
| 26 | their respective shares of
such estimated expenses, and of any | ||||||
| |||||||
| |||||||
| 1 | other expenses lawfully agreed upon.
| ||||||
| 2 | (i) That upon 10 days notice to the manager or board of | ||||||
| 3 | managers and
payment of a reasonable fee, any unit owner shall | ||||||
| 4 | be furnished a statement
of his account setting forth the | ||||||
| 5 | amount of any unpaid assessments or other
charges due and owing | ||||||
| 6 | from such owner.
| ||||||
| 7 | (j) Designation and removal of personnel necessary for the | ||||||
| 8 | maintenance,
repair and replacement of the common elements.
| ||||||
| 9 | (k) Such restrictions on and requirements respecting the | ||||||
| 10 | use and
maintenance of the units and the use of the common | ||||||
| 11 | elements, not set forth
in the declaration, as are designed to | ||||||
| 12 | prevent unreasonable interference
with the use of their | ||||||
| 13 | respective units and of the common elements by the
several unit | ||||||
| 14 | owners.
| ||||||
| 15 | (l) Method of adopting and of amending administrative rules | ||||||
| 16 | and
regulations governing the operation and use of the common | ||||||
| 17 | elements.
| ||||||
| 18 | (m) The percentage of votes required to modify or amend the | ||||||
| 19 | bylaws, but
each one of the particulars set forth in this | ||||||
| 20 | section shall always be
embodied in the bylaws.
| ||||||
| 21 | (n)(i) The provisions of this Act, the declaration, bylaws, | ||||||
| 22 | other
condominium instruments, and rules and regulations that | ||||||
| 23 | relate to the use
of the individual unit or the common elements | ||||||
| 24 | shall be applicable to
any person leasing a unit and shall be | ||||||
| 25 | deemed to be incorporated in any
lease executed or renewed on | ||||||
| 26 | or after the effective date of this amendatory
Act of 1984. | ||||||
| |||||||
| |||||||
| 1 | (ii) With regard to any lease entered into subsequent to the
| ||||||
| 2 | effective date of this amendatory Act of 1989, the unit owner | ||||||
| 3 | leasing the
unit shall deliver a copy of the signed lease to | ||||||
| 4 | the board or if the
lease is oral, a memorandum of the lease, | ||||||
| 5 | not later than the date of
occupancy or 10 days after the lease | ||||||
| 6 | is signed, whichever occurs first. In
addition to any other | ||||||
| 7 | remedies, by filing an action jointly against the
tenant and | ||||||
| 8 | the unit owner, an association may seek to enjoin a tenant from
| ||||||
| 9 | occupying a unit or seek to evict a tenant under the provisions | ||||||
| 10 | of Article
IX of the Code of Civil Procedure for failure of the | ||||||
| 11 | lessor-owner to
comply with the leasing requirements | ||||||
| 12 | prescribed by
this Section or by the declaration, bylaws, and
| ||||||
| 13 | rules and regulations. The board of managers may proceed | ||||||
| 14 | directly against a
tenant, at law or in equity, or under the | ||||||
| 15 | provisions of Article IX of the
Code of Civil Procedure, for | ||||||
| 16 | any other breach by tenant of any
covenants, rules, regulations | ||||||
| 17 | or bylaws.
| ||||||
| 18 | (o) The association shall have no authority to forbear the | ||||||
| 19 | payment
of assessments by any unit owner.
| ||||||
| 20 | (p) That when 30% or fewer of the units, by number,
possess | ||||||
| 21 | over 50% in the aggregate of the votes in the association,
any | ||||||
| 22 | percentage vote of members specified herein or in the | ||||||
| 23 | condominium
instruments shall require the specified percentage | ||||||
| 24 | by number of units
rather than by percentage of interest in the | ||||||
| 25 | common elements allocated
to units that would otherwise be | ||||||
| 26 | applicable and garage units or storage units, or both, shall | ||||||
| |||||||
| |||||||
| 1 | have, in total, no more votes than their aggregate percentage | ||||||
| 2 | of ownership in the common elements; this shall mean that if | ||||||
| 3 | garage units or storage units, or both, are to be given a vote, | ||||||
| 4 | or portion of a vote, that the association must add the total | ||||||
| 5 | number of votes cast of garage units, storage units, or both, | ||||||
| 6 | and divide the total by the number of garage units, storage | ||||||
| 7 | units, or both, and multiply by the aggregate percentage of | ||||||
| 8 | ownership of garage units and storage units to determine the | ||||||
| 9 | vote, or portion of a vote, that garage units or storage units, | ||||||
| 10 | or both, have. For purposes of this subsection (p), when making | ||||||
| 11 | a determination of whether 30% or fewer of the units, by | ||||||
| 12 | number, possess over 50% in the aggregate of the votes in the | ||||||
| 13 | association, a unit shall not include a garage unit or a | ||||||
| 14 | storage unit.
| ||||||
| 15 | (q) That a unit owner may not assign, delegate, transfer, | ||||||
| 16 | surrender, or
avoid the duties, responsibilities, and | ||||||
| 17 | liabilities of a unit owner under this
Act, the condominium | ||||||
| 18 | instruments, or the rules and regulations of the
Association; | ||||||
| 19 | and that such an attempted assignment, delegation, transfer,
| ||||||
| 20 | surrender, or avoidance shall be deemed void.
| ||||||
| 21 | The provisions of this Section are applicable to all | ||||||
| 22 | condominium
instruments recorded under this Act. Any portion of | ||||||
| 23 | a condominium
instrument which contains provisions contrary to | ||||||
| 24 | these provisions shall be
void as against public policy and | ||||||
| 25 | ineffective. Any such instrument which
fails to contain the | ||||||
| 26 | provisions required by this Section shall be deemed to
| ||||||
| |||||||
| |||||||
| 1 | incorporate such provisions by operation of law.
| ||||||
| 2 | (Source: P.A. 98-1042, eff. 1-1-15.)
| ||||||