As used in this Act, unless the context otherwise requires:
(a) “Declaration” means the instrument by which the property
is submitted to the provisions of this Act, as hereinafter provided,
and such declaration as from time to time amended.
(b) “Parcel” means the lot or lots tract or tracts of land,
described in the declaration, submitted to the provisions of this
Act.
(c) “Property” means all the land, property and space
comprising the parcel, all improvements and structures erected,
constructed or contained therein or thereon, including the building
and all easements, rights and appurtenances belonging thereto, and
all fixtures and equipment intended for the mutual use, benefit or
enjoyment of the unit owners, submitted to the provisions of this
Act.
(d) “Unit” means a part of the property designed and intended
for any type of independent use.
(e) “Common Elements” means all portions of the property
except the units, including limited common elements unless otherwise
specified.
(f) “Person” means a natural individual, corporation,
partnership, trustee or other legal entity capable of holding title
to real property.
(g) “Unit Owner” means the person or persons whose estates or
interests, individually or collectively, aggregate fee simple
absolute ownership of a unit, or, in the case of a leasehold
condominium, the lessee or lessees of a unit whose leasehold
ownership of the unit expires simultaneously with the lease
described in item (x) of this Section.
(h) “Majority” or “majority of the unit owners” means the
owners of more than 50% in the aggregate in interest of the
undivided ownership of the common elements. Any specified percentage
of the unit owners means such percentage in the aggregate in
interest of such undivided ownership. “Majority” or “majority of the
members of the board of managers” means more than 50% of the total
number of persons constituting such board pursuant to the bylaws.
Any specified percentage of the members of the board of managers
means that percentage of the total number of persons constituting
such board pursuant to the bylaws.
(i) “Plat” means a plat or plats of survey of the parcel and
of all units in the property submitted to the provisions of this
Act, which may consist of a three-dimensional horizontal and
vertical delineation of all such units.
(j) “Record” means to record in the office of the recorder
or, whenever required, to file in the office of the Registrar of
Titles of the county wherein the property is located.
(k) “Conversion Condominium” means a property which contains
structures, excepting those newly constructed and intended for
condominium ownership, which are, or have previously been wholly or
partially occupied before recording of condominium instruments by
persons other than those who have contracted for the purchase of
condominiums.
(l) “Condominium Instruments” means all documents and
authorized amendments thereto recorded pursuant to the provisions of
the Act, including the declaration, bylaws and plat.
(m) “Common Expenses” means the proposed or actual expenses
affecting the property, including reserves, if any, lawfully
assessed by the Board of Managers of the Unit Owner’s Association.
(n) “Reserves” means those sums paid by unit owners which are
separately maintained by the board of managers for purposes
specified by the board of managers or the condominium instruments.
(o) “Unit Owners’ Association” or “Association” means the
association of all the unit owners, acting pursuant to bylaws
through its duly elected board of managers.
(p) “Purchaser” means any person or persons other than the
Developer who purchase a unit in a bona fide transaction for value.
(q) “Developer” means any person who submits property legally
or equitably owned in fee simple by the developer, or leased to the
developer under a lease described in item (x) of this Section, to
the provisions of this Act, or any person who offers units legally
or equitably owned in fee simple by the developer, or leased to the
developer under a lease described in item (x) of this Section, for
sale in the ordinary course of such person’s business, including any
successor or successors to such developers’ entire interest in the
property other than the purchaser of an individual unit.
(r) “Add-on Condominium” means a property to which additional
property may be added in accordance with condominium instruments and
this Act.
(s) “Limited Common Elements” means a portion of the common
elements so designated in the declaration as being reserved for the
use of certain unit or units to the exclusion of other units,
including but not limited to balconies, terraces, patios and parking
spaces or facilities.
(t) “Building” means all structures, attached or unattached,
containing one or more units.
(u) “Master Association” means an organization described in
Section 18.5 whether or not it is also an association described in
Section 18.3.
(v) “Developer Control” means such control at a time prior to
the election of the Board of Managers provided for in Section
18.2(b) of this Act.
(w) “Meeting of Board of Managers or Board of Master
Association” means any gathering of a quorum of the members of the
Board of Managers or Board of the Master Association held for the
purpose of conducting board business.
(x) “Leasehold Condominium” means a property submitted to the
provisions of this Act which is subject to a lease, the expiration
or termination of which would terminate the condominium and the
lessor of which is (i) exempt from taxation under Section 501(c)(3)
of the Internal Revenue Code of 1986, as amended, (ii) a limited
liability company whose sole member is exempt from taxation under
Section 501 (c)(3) of the Internal Revenue Code of 1986, as amended,
or (iii) a Public Housing Authority created pursuant to the Housing
Authorities Act that is located in a municipality having a
population in excess of 1,000,000 inhabitants.
Unless otherwise expressly provided in another Section, the
provisions of this Act are applicable to all condominiums in this
State. Any provisions of a condominium instrument that contains
provisions inconsistent with the provisions of this Act are void as
against public policy and ineffective.
Whenever the owner or owners in fee simple, or the sole lessee or
all lessees of a lease described in item (x) of Section 2, of a
parcel intend to submit such property to the provisions of this Act,
they shall do so by recording a declaration, duly executed and
acknowledged, expressly stating such intent and setting forth the
particulars enumerated in Section 4. If the condominium is a
leasehold condominium, then every lessor of the lease creating a
leasehold interest as described in item (x) of Section 2 shall also
execute the declaration and such lease shall be recorded prior to
the recording of the declaration. The execution of a declaration
required under this Section by the lessor under a lease as described
in item (x) of Section 2 does not make the lessor a developer for
purposes of this Act.
The declaration shall set forth the following particulars:
(a) The legal description of the parcel.
(b) The legal description of each unit, which may consist of
the identifying number or symbol of such unit as shown on the plat.
(c) The name of the condominium, which name shall include the
word “Condominium” or be followed by the words “a Condominium.”
(d) The name of the city and county or counties in which the
condominium is located.
(e) The percentage of ownership interest in the common
elements allocated to each unit. Such percentages shall be computed
by taking as a basis the value of each unit in relation to the value
of the property as a whole, and having once been determined and set
forth as herein provided, such percentages shall remain constant
unless otherwise provided in this Act or thereafter changed by
agreement of all unit owners.
(f) If applicable, all matters required by this Act in
connection with an add-on condominium.
(g) A description of both the common and limited common
elements, if any indicating the manner of their assignment to a unit
or units.
(h) If applicable, all matters required by this Act in
connection with a conversion condominium.
(h-5) If the condominium is a leasehold condominium, then:
(1) The date of recording and recording document number for
the lease creating a leasehold interest as described in item (x) of
Section 2;
(2) The date on which the lease is scheduled to expire;
(3) The legal description of the property subject to the
lease;
(4) Any right of the unit owners to redeem the reversion and
the manner whereby those rights may be exercised, or a statement
that the unit owners do not have such rights;
(5) Any right of the unit owners to remove any improvements
within a reasonable time after the expiration or termination of the
lease, or a statement that the unit owners do not have such rights;
(6) Any rights of the unit owners to renew the lease and the
conditions of any renewal, or a statement that the unit owners do
not have such rights; and
(7) A requirement that any sale of the property pursuant to
Section 15 of this Act, or any removal of the property pursuant to
Section 16 of this Act, must be approved by the lessor under the
lease.
(i) Such other lawful
provisions not inconsistent with the provisions of this Act as the
owner or owners may deem desirable in order to promote and preserve
the cooperative aspect of ownership of the property and to
facilitate the proper administration thereof.
Sec. 4.1. CONSTRUCTION, INTERPRETATION, AND
VALIDITY OF CONDOMINIUM INSTRUMENTS
(a) Except to the extent
otherwise provided by the declaration or other condominium
instruments:
(1) The terms defined in
Section 2 of this Act shall be deemed to have the meaning specified
therein unless the context otherwise requires.
(2) To the extent that perimeter and partition walls, floors
or ceilings are designated as the boundaries of the units or of any
specified units, all decorating, wall and floor coverings, paneling,
molding, tiles, wallpaper, paint, finished flooring and any other
materials constituting any part of the finished surfaces thereof,
shall be deemed a part of such units, while all other portions of
such walls, floors or ceilings and all portions of perimeter doors
and all portions of windows in perimeter walls shall be deemed part
of the common elements.
(3) If any chutes, flues, ducts, conduits, wires, bearing
walls, bearing columns, or any other apparatus lies partially within
and partially outside of the designated boundaries of a unit, any
portions thereof serving only that unit shall be deemed a part of
that unit, while any portions thereof serving more than one unit or
any portion of the common elements shall be deemed a part of the
common elements.
(4) Subject to the provisions of paragraph (3) of subsection
(a), all space and other fixtures and improvements within the
boundaries of a unit shall be deemed a part of that unit.
(5) Any shutters, awnings, window boxes, doorsteps, porches,
balconies, patios, perimeter doors, windows in perimeter walls, and
any other apparatus designed to serve a single unit shall be deemed
a limited common element appertaining to that unit exclusively.
(6) All provisions of the declaration bylaws and other
condominium instruments are severable.
(b) Except to the extent otherwise provided by the
declaration or by other condominium instruments recorded prior to
the effective date of this amendatory Act of 1984, in the event of a
conflict between the provisions of the declaration and the bylaws or
other condominium instruments, the declaration prevails except to
the extent the declaration is inconsistent with this Act.
(c) A provision in the initial declaration limiting
ownership, rental or occupancy of a condominium unit to a person 55
years of age or older shall be valid and deemed not to be in
violation of Article 3 of the Illinois Human Rights Act provided
that the person or the immediate family of a person owning, renting
or lawfully occupying such unit prior to the recording of the
initial declaration shall not be deemed to be in violation of such
age restriction so long as they continue to own or reside in such
unit.
Simultaneously with the recording of the declaration there shall be
recorded a plat as defined in Section 2, which plat shall be made by
a Registered Illinois Land Surveyor and shall set forth (1) all
angular and linear data along the exterior boundaries of the parcel;
(2) the linear measurements and location, with reference to said
exterior boundaries, of any buildings improvements and structures
located on the parcel; and (3) the elevations at, above, or below
official datum of the finished or unfinished interior surfaces of
the floors and ceilings and the linear measurements of the finished
or unfinished interior surfaces of the perimeter walls, and lateral
extensions thereof or other monumental perimeter boundaries, where
there are no wall surfaces, that part of every unit which is in any
building on the parcel, and the locations of such wall surfaces or
unit boundaries with respect to the exterior boundaries of the
parcel projected vertically upward; (4) the elevations at, above, or
below official datum and the linear measurements of the perimeter
boundaries, of that part of the property which constitute a unit or
a part thereof outside any building on the parcel and the location
of the boundaries with respect to the exterior vertical boundaries
of the parcel, projected vertically upward. Every such unit shall be
identified on the plat by a distinguishing number or other symbol;
(5) if the Registered Illinois Land Surveyor does not certify that
such plat accurately depicts the matters set forth in subsection (3)
and (4) above, such a certification for any particular unit or units
as built shall be recorded prior to the first conveyance of such
particular unit or units as part of an amended plat, thereby
complying with the requirements of subsections (3) and (4) of this
Section; (6) when adding additional property to an add-on
condominium, the developer, or in the event of any other alteration
in the boundaries or location of a unit, any building on the parcel
or the parcel authorized in this Act, the president of the board of
managers or other officer authorized and designated by the
condominium instruments shall record an amended plat of survey
conforming to the requirements of this Section, or shall provide a
certificate of a plat previously recorded that is in accordance with
the certification requirements of this subsection. Such amended plat
or certificate shall be certified by a Registered Illinois Land
Surveyor as to accuracy in depicting changes in boundary or location
in the portions of the property set forth in subsections (1), (2),
(3) and (4) above, and that such changes have been completed.
Upon compliance with the provisions of Sections 3, 4, and 5 and upon
recording of the declaration and plat the property shall become
subject to the provisions of this Act, and all units shall thereupon
be capable of ownership in fee simple or any lesser estate, and may
thereafter be conveyed, leased, mortgaged or otherwise dealt with in
the same manner as other real property, but subject, however, to the
limitations imposed by this Act.
Each unit owner shall be entitled to the percentage of ownership in
the common elements appertaining to such unit as computed and set
forth in the declaration pursuant to subsection (e) of Section 4
hereof, and ownership of such unit and of the owner’s corresponding
percentage of ownership in the common elements shall not be
separated, except as provided in this Act, nor, except by the
recording of an amended declaration and amended plat approved in
writing by all unit owners, shall any unit, by deed, plat, judgment
of a court or otherwise, be subdivided or in any other manner
separated into tracts or parcels different from the whole unit as
shown on the plat, except as provided in this Act.
The condominium instruments may contain provisions in accordance
with this Act providing for the reallocation and adjustment of the
percentage of ownership in the common elements appertaining to a
unit or units in circumstances relating to the following
transactions: an add-on condominium; condemnation; damage or
destruction of all or a portion of the property; and the subdivision
or combination of units. Interests in the common elements shall be
re-allocated, and the transaction shall be deemed effective at the
time of the recording of an amended plat depicting same pursuant to
Section 5 of this Act. Simultaneously with the recording of the
amended plat, the developer in the case of an add-on condominium, or
the President of the board of managers or other officer in other
instances authorized in this Act shall execute and record an
amendment to the declaration setting forth all pertinent aspects of
the transaction including the reallocation or adjustment of the
common interest. The amendment shall contain legal descriptions
sufficient to indicate the location of any property involved in the
transaction.
Every deed, lease, mortgage or other instrument may legally describe
a unit by its identifying number or symbol as shown on the plat and
as set forth in the declaration, and every such description shall be
deemed good and sufficient for all purposes, and shall be deemed to
convey, transfer, encumber or otherwise affect the owner’s
corresponding percentage of ownership in the common elements even
though the same is not expressly mentioned or described therein.
As long as the property is subject to the provisions of this Act the
common elements shall, except as provided in Section 14 hereof,
remain undivided, and no unit owner shall bring any action for
partition or division of the common elements. Any covenant or
agreement to the contrary shall be void.
Sec. 9.
SHARING OF EXPENSES — LIEN FOR NONPAYMENT.
(a) All common expenses incurred or accrued prior to the first
conveyance of a unit shall be paid by the developer, and during this
period no common expense assessment shall be payable to the
association. It shall be the duty of each unit owner including the
developer to pay his proportionate share of the common expenses
commencing with the first conveyance. The proportionate share shall
be in the same ratio as his percentage of ownership in the common
elements set forth in the declaration.
(b) The condominium instruments may provide that common
expenses for insurance premiums be assessed on a basis reflecting
increased charges for coverage on certain units.
(c) Budget and reserves.
(1) The board of managers shall prepare and distribute to all
unit owners a detailed proposed annual budget, setting forth with
particularity all anticipated common expenses by category as well as
all anticipated assessments and other income. The initial budget and
common expense assessment based thereon shall be adopted prior to
the conveyance of any unit. The budget shall also set forth each
unit owner’s proposed common expense assessment.
(2) All budgets adopted by a board of managers on or after
July 1, 1990 shall provide for reasonable reserves for capital
expenditures and deferred maintenance for repair or replacement of
the common elements. To determine the amount of reserves appropriate
for an association, the board of managers shall take into
consideration the following: (i) the repair and replacement cost,
and the estimated useful life, of the property which the association
is obligated to maintain, including but not limited to structural
and mechanical components, surfaces of the buildings and common
elements, and energy systems and equipment; (ii) the current and
anticipated return on investment of association funds; (iii) any
independent professional reserve study which the association may
obtain; (iv) the financial impact on unit owners, and the market
value of the condominium units, of any assessment increase needed to
fund reserves; and (v) the ability of the association to obtain
financing or refinancing.
(3) Notwithstanding the provisions of this subsection (c), an
association without a reserve requirement in its condominium
instruments may elect to waive in whole or in part the reserve
requirements of this Section by a vote of 2/3 of the total votes of
the association. Any association having elected under this paragraph
(3) to waive the provisions of subsection (c) may by a vote of 2/3
of the total votes of the association elect to again be governed by
the requirements of subsection (c).
(4) In the event that an association elects to waive all or
part of the reserve requirements of this Section, that fact must be
disclosed after the meeting at which the waiver occurs by the
association in the financial statements of the association and,
highlighted in bold print, in the response to any request of a
prospective purchaser for the information prescribed under Section
22.1; and no member of the board of managers or the managing agent
of the association shall be liable, and no cause of action may be
brought for damages against these parties, for the lack or
inadequacy of reserve funds in the association budget.
(d) (Blank.)
(e) The condominium instruments may provide for the
assessment, in connection with expenditures for the limited common
elements, of only those units to which the limited common elements
are assigned.
(f) Payment of any assessment shall be in amounts and at
times determined by the board of managers.
(g) Lien.
(1) If any unit owner shall fail or refuse to make any
payment of the common expenses or the amount of any unpaid fine when
due, the amount thereof together with any interest, late charges,
reasonable attorney fees incurred enforcing the covenants of the
condominium instruments, rules and regulations of the board of
managers, or any applicable statute or ordinance, and costs of
collections shall constitute a lien on the interest of the unit
owner in the property prior to all other liens and encumbrances,
recorded or unrecorded, except only (a) taxes, special assessments
and special taxes theretofore or thereafter levied by any political
subdivision or municipal corporation of this State and other State
or federal taxes which by law are a lien on the interest of the unit
owner prior to preexisting recorded encumbrances thereon and (b)
encumbrances on the interest of the unit owner recorded prior to the
date of such failure or refusal which by law would be a lien thereon
prior to subsequently recorded encumbrances. Any action brought to
extinguish the lien of the association shall include the association
as a party.
(2) With respect to encumbrances executed prior to August 30,
1984 or encumbrances executed subsequent to August 30, 1984 which
are neither bona fide first mortgages nor trust deeds and which
encumbrances contain a statement of a mailing address in the State
of Illinois where notice may be mailed to the encumbrancer
thereunder, if and whenever and as often as the manager or board of
managers shall send, by United States certified or registered mail,
return receipt requested, to any such encumbrancer at the mailing
address set forth in the recorded encumbrance a statement of the
amounts and due dates of the unpaid common expenses with respect to
the encumbered unit, then, unless otherwise provided in the
declaration or bylaws, the prior recorded encumbrance shall be
subject to the lien of all unpaid common expenses with respect to
the unit which become due and payable within a period of 90 days
after the date of mailing of each such notice.
(3) The purchaser of a condominium unit at a judicial
foreclosure sale, or a mortgagee who receives title to a unit by
deed in lieu of foreclosure or judgment by common law strict
foreclosure or otherwise takes possession pursuant to court order
under the Illinois Mortgage Foreclosure Law, shall have the duty to
pay the unit’s proportionate share of the common expenses for the
unit assessed from and after the first day of the month after the
date of the judicial foreclosure sale, delivery of the deed in lieu
of foreclosure, entry of a judgment in common law strict
foreclosure, or taking of possession pursuant to such court order.
Such payment confirms the extinguishment of any lien created
pursuant to paragraph (1) or (2) of this subsection (g) by virtue of
the failure or refusal of a prior unit owner to make payment of
common expenses, where the judicial foreclosure sale has been
confirmed by order of the court, a deed in lieu thereof has been
accepted by the lender, or a consent judgment has been entered by
the court.
(4) The purchaser of a condominium unit at a judicial
foreclosure sale, other than a mortgagee, who takes possession of a
condominium unit pursuant to a court order or a purchaser who
acquires title from a mortgagee shall have the duty to pay the
proportionate share, if any, of the common expenses for the unit
which would have become due in the absence of any assessment
acceleration during the 6 months immediately preceding institution
of an action to enforce the collection of assessments, and which
remain unpaid by the owner during whose possession the assessments
accrued. If the outstanding assessments are paid at any time during
any action to enforce the collection of assessments, the purchaser
shall have no obligation to pay any assessments which accrued before
he or she acquired title.
(5) The notice of sale of a condominium unit under subsection
(c) of Section 15-1507 of the Code of Civil Procedure shall state
that the purchaser of the unit other than a mortgagee shall pay the
assessments and the legal fees required by subdivisions (g)(1) and
(g)(4) of Section 9 of this Act. The statement of assessment account
issued by the association to a unit owner under subsection (i) of
Section 18 of this Act, and the disclosure statement issued to a
prospective purchaser under Section 22.1 of this Act, shall state
the amount of the assessments and the legal fees, if any, required
by subdivisions (g)(1) and (g)(4) of Section 9 of this Act.
(h) A lien for common expenses shall be in favor of the
members of the board of managers and their successors in office and
shall be for the benefit of all other unit owners. Notice of the
lien may be recorded by the board of managers, or if the developer
is the manager or has a majority of seats on the board of managers
and the manager or board of managers fails to do so, any unit owner
may record notice of the lien. Upon the recording of such notice the
lien may be foreclosed by an action brought in the name of the board
of managers in the same manner as a mortgage of real property.
(i) Unless otherwise provided in the declaration, the members
of the board of managers and their successors in office, acting on
behalf of the other unit owners, shall have the power to bid on the
interest so foreclosed at the foreclosure sale, and to acquire and
hold, lease, mortgage and convey it.
(j) Any encumbrancer may from time to time request in writing
a written statement from the manager or board of managers setting
forth the unpaid common expenses with respect to the unit covered by
his encumbrance. Unless the request is complied with within 20 days,
all unpaid common expenses which become due prior to the date of the
making of such request shall be subordinate to the lien of the
encumbrance. Any encumbrancer holding a lien on a unit may pay any
unpaid common expenses payable with respect to the unit and upon
payment the encumbrancer shall have a lien on the unit for the
amounts paid at the same rank as the lien of his encumbrance.
(k) Nothing in Public Act 83-1271 is intended to change the
lien priorities of any encumbrance created prior to August 30, 1984.
Sec. 9.1. OTHER LIENS; ATTACHMENT AND
SATISFACTION.
(a) Subsequent to the recording of the declaration, no liens of
any nature shall be created or arise against any portion of the
property except against an individual unit or units. No labor
performed or materials furnished with the consent or at the request
of a particular unit owner shall be the basis for the filing of a
mechanics’ lien claim against any other unit. If the performance of
the labor or furnishing of the materials is expressly authorized by
the board of managers, each unit owner shall be deemed to have
expressly authorized it and consented thereto, and shall be liable
for the payment of his unit’s proportionate share of any due and
payable indebtedness as set forth in this Section.
Each mortgage and other lien, including mechanics liens, securing a
debt incurred in the development of the land submitted to the
provisions of this Act for the sale of units shall be subject to the
provisions of this Act, subsequent to the conveyance of a unit to
the purchaser.
In the event any lien exists against 2 or more units and the
indebtedness secured by such lien is due and payable, the unit owner
of any such unit so affected may remove such unit and the undivided
interest in the common elements appertaining thereto from such lien
by payment of the proportional amount of such indebtedness
attributable to such unit. In the event such lien exists against the
units or against the property, the amount of such proportional
payment shall be computed on the basis of the percentages set forth
in the declaration. Upon payment as herein provided, it is the duty
of the encumbrancer to execute and deliver to the unit owner a
release of such unit and the undivided interest in the common
elements appertaining thereto from such lien, except that such
proportional payment and release shall not prevent the encumbrancer
from proceeding to enforce his rights against any unit or interest
with respect to which such lien has not been so paid or released.
The owner of a unit shall not be liable for any claims, damages, or
judgments, including but not limited to State or local government
fees or fines, entered as a result of any action or inaction of the
board of managers of the association other than for mechanics’ liens
as set forth in this Section. Unit owners other than the developer,
members of the board of managers other than the developer or
developer representatives, and the association of unit owners shall
not be liable for any claims, damages, or judgments, including but
not limited to State or local government fees or fines, entered as
result of any action or inaction of the developer other than for
mechanics’ liens as set forth in this Section. Each unit owner’s
liability for any judgment entered against the board of managers or
the association, if any, shall be limited to his proportionate share
of the indebtedness as set forth in this Section, whether collection
is sought through assessment or otherwise. A unit owner shall be
liable for any claim, damage or judgment entered as a result of the
use or operation of his unit, or caused by his own conduct. Before
conveying a unit, a developer shall record and furnish purchaser
releases of all liens affecting that unit and its common element
interest which the purchaser does not expressly agree to take
subject to or assume, and the developer shall provide a surety bond
or substitute collateral for or insurance against liens for which a
release is not provided. After conveyance of such unit, no mechanics
lien shall be created against such unit or its common element
interest by reason of any subsequent contract by the developer to
improve or make additions to the property.
Each mortgagee or other lienholder of the unit of a common interest
community or of a unit subject to the Condominium Property Act shall
provide an address to the unit owners’ association at the time the
lien or mortgage is recorded at which address such unit owners’
association shall send notice to such mortgagee or lienholder of any
eminent domain proceeding to which the association thereafter
becomes a party. If the mortgagee or lienholder has not provided an
address for notice purposes to the association, then such notice
shall be sent to all mortgagees or lienholders which are named
insureds on the master policy of insurance which exists or may exist
on the common interest community or unit subject to the Condominium
Property Act.
(b) Board of Managers’ standing and capacity. The board of
managers shall have standing and capacity to act in a representative
capacity in relation to matters involving the common elements or
more than one unit, on behalf of the unit owners, as their interests
may appear.
(a) In the event of any default
by any unit owner, his tenant, invitee or guest in the performance
of his obligations under this Act or under the declaration, bylaws,
or the rules and regulations of the board of managers, the board of
managers or its agents shall have such rights and remedies as
provided in the Act or condominium instruments including the right
to maintain an action for possession against such defaulting unit
owner or his tenant for the benefit of all the other unit owners in
the manner prescribed by Article IX of the Code of Civil Procedure.
(b) Any attorneys’ fees incurred by the Association arising
out of a default by any unit owner, his tenant, invitee or guest in
the performance of any of the provisions of the condominium
instruments, rules and regulations or any applicable statute or
ordinance shall be added to, and deemed a part of, his respective
share of the common expense.
(c) Other than attorney’s fees, no fees pertaining to the
collection of a unit owner’s financial obligation to the
Association, including fees charged by a manager or managing agent,
shall be added to and deemed a part of an owner’s respective share
of the common expenses unless: (i) the managing agent fees relate to
the costs to collect common expenses for the Association; (ii) the
fees are set forth in a contract between the managing agent and the
Association; and (iii) the authority to add the management fees to
an owner’s respective share of the common expenses is specifically
stated in the declaration or bylaws of the Association.
The unit owners’ association shall be named as defendant on behalf
of all unit owners in any eminent domain proceeding to take or
damage property which is a common element and which includes no
portions of any units or limited common elements. The association
shall act therein on behalf of all unit owners. Nothing contained
herein shall bar a unit owner or mortgagee or lienholder from
intervening in the eminent domain proceeding on his own behalf.
After receipt of summons in an action to take or damage a common
element, the unit owners’ association shall provide to the plaintiff
a list of the unit owners, mortgagees and lienholders, and the
plaintiff shall provide notice by certified mail to the unit owners,
mortgagees and lienholders.
The notice shall include the following:
(a) case name and number and jurisdiction in which the case
is filed;
(b) date of filing;
(c) brief description of the nature of the case;
(d) description of the property being damaged or taken;
(e) statement that the unit owner may petition the court to
intervene; and
(f) statement that the mortgagee or lienholder may petition
the court to intervene.
An immaterial error in providing notice shall not invalidate the
legal effect of the proceeding.
(a) Real property taxes, special assessments, and any other
special taxes or charges of the State of Illinois or of any
political subdivision thereof, or other lawful taxing or assessing
body, which are authorized by law to be assessed against and levied
upon real property shall be assessed against and levied upon each
unit and the owner’s corresponding percentage of ownership in the
common elements as a tract, and not upon the property as a whole.
For purposes of property taxes, real property owned and used for
residential purposes by a condominium association, including a
master association, but subject to the exclusive right by easement,
covenant, deed or other interest of the owners of one or more
condominium properties and used exclusively by the unit owners for
recreational or other residential purposes shall be assessed at
$1.00 per year. The balance of the value of the property shall be
assessed to the condominium unit owners. In counties containing
1,000,000 or more inhabitants, any person desiring to establish or
to reestablish an assessment of $1.00 under this Section shall make
application therefor and be subject to the provisions of Section
10-35 of the Property Tax Code.
(b) Each condominium unit shall be only subject to the tax
rate for those taxing districts in which such unit is actually,
physically located. The county clerk shall not apply a rate which is
an average of two or more different districts to any condominium
unit.
(c) Upon authorization by a two-thirds vote of the members of
the board of managers or by the affirmative vote of not less than a
majority of the unit owners at a meeting duly called for such
purpose, or upon such greater vote as may be required by the
declaration or bylaws, the board of managers acting on behalf of all
unit owners shall have the power to seek relief from or in
connection with the assessment or levy of any such taxes, special
assessments or charges, and to charge and collect all expenses
incurred in connection therewith as common expenses.
In the event any person shall acquire or be entitled to the issuance
of a tax deed conveying the interest of any unit owner, the interest
so acquired shall be subject to all the provisions of this Act and
to the terms, provisions, covenants, conditions and limitations
contained in the declaration, the plat, the bylaws or any deed
affecting such interest then in force.
(a) Required coverage. No
policy of insurance shall be issued or delivered to a condominium
association, and no policy of insurance issued to a condominium
association shall be renewed, unless the insurance coverage under
the policy includes the following:
(1) Property insurance. Property insurance (i) on the common
elements and the units, including the limited common elements and
except as otherwise determined by the board of managers, the bare
walls, floors, and ceilings of the unit, (ii) providing coverage for
special form causes of loss, and (iii) in a total amount of not less
than the full insurable replacement cost of the insured property,
less deductibles, but including coverage for the increased costs of
construction due to building code requirements, at the time the
insurance is purchased and at each renewal date.
(2) General liability insurance. Commercial general liability
insurance against claims and liabilities arising in connection with
the ownership, existence, use, or management of the property in a
minimum amount of $1,000,000, or a greater amount deemed sufficient
in the judgment of the board, insuring the board, the association,
the management agent, and their respective employees and agents and
all persons acting as agents. The developer must be included as an
additional insured in its capacity as a unit owner, manager, board
member, or officer. The unit owners must be included as additional
insured parties but only for claims and liabilities arising in
connection with the ownership, existence, use, or management of the
common elements. The insurance must cover claims of one or more
insured parties against other insured parties.
(3) Fidelity bond; directors and officers coverage. (A) An
association with 6 or more dwelling units must obtain and maintain a
fidelity bond covering persons, including the managing agent and its
employees 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.
(B) All management companies that are responsible for the funds held
or administered by the association must be covered by a fidelity
bond for the maximum amount of coverage available to protect those
funds. The association has standing to make a loss claim against the
bond of the managing agent as a party covered under the bond. (C)
For purposes of paragraphs (A) and (B), the fidelity bond must be in
the full amount of association funds and reserves in the custody of
the association or the management company. (D) The board of
directors must obtain directors and officers liability coverage at a
level deemed reasonable by the board, if not otherwise established
by the declaration or bylaws. Directors and officers liability
coverage must extend to all contracts and other actions taken by the
board in their official capacity as directors and officers, but this
coverage shall exclude actions for which the directors are not
entitled to indemnification under the General Not For Profit
Corporation Act of 1986 or the declaration and bylaws of the
association.
(b) Contiguous units; improvements and betterments. The
insurance maintained under subdivision (a)(1) must include the
units, the limited common elements except as otherwise determined by
the board of managers, and the common elements. The insurance need
not cover improvements and betterments to the units installed by
unit owners, but if improvements and betterments are covered, any
increased cost may be assessed by the association against the units
affected. Common elements include fixtures located within the
unfinished interior surfaces of the perimeter walls, floors, and
ceilings of the individual units initially installed by the
developer. Common elements exclude floor, wall, and ceiling
coverings. “Improvements and betterments” means all decorating,
fixtures, and furnishings installed or added to and located within
the boundaries of the unit, including electrical fixtures,
appliances, air conditioning and heating equipment, water heaters,
or built-in cabinets installed by unit owners.
(c) Deductibles. The board of directors of the association
may, in the case of a claim for damage to a unit or the common
elements, (i) pay the deductible amount as a common expense, (ii)
after notice and an opportunity for a hearing, assess the deductible
amount against the owners who caused the damage or from whose units
the damage or cause of loss originated, or (iii) require the unit
owners of the units affected to pay the deductible amount.
(d) Other coverages. The declaration may require the
association to carry any other insurance, including workers
compensation, employment practices, environmental hazards, and
equipment breakdown, the board of directors considers appropriate to
protect the association, the unit owners, or officers, directors, or
agents of the association.
(e) Insured parties; waiver of subrogation. Insurance
policies carried pursuant to subsections (a) and (b) must include
each of the following provisions: (1) Each unit owner and secured
party is an insured person under the policy with respect to
liability arising out of the unit owner’s interest in the common
elements or membership in the association. (2) The insurer waives
its right to subrogation under the policy against any unit owner of
the condominium or members of the unit owner’s household and against
the association and members of the board of directors. (3) The unit
owner waives his or her right to subrogation under the association
policy against the association and the board of directors.
(f) Primary insurance. If at the time of a loss under the
policy there is other insurance in the name of a unit owner covering
the same property covered by the policy, the association’s policy is
primary insurance.
(g) Adjustment of losses; distribution of proceeds. Any loss
covered by the property policy under subdivision (a)(1) must be
adjusted by and with the association. The insurance proceeds for
that loss must be payable to the association, or to an insurance
trustee designated by the association for that purpose. The
insurance trustee or the association must hold any insurance
proceeds in trust for unit owners and secured parties as their
interests may appear. The proceeds must be disbursed first for the
repair or restoration of the damaged common elements, the bare
walls, ceilings, and floors of the units, and then to any
improvements and betterments the association may insure. Unit owners
are not entitled to receive any portion of the proceeds unless there
is a surplus of proceeds after the common elements and units have
been completely repaired or restored or the association has been
terminated as trustee.
(h) Mandatory unit owner coverage. The board of directors
may, under the declaration and bylaws or by rule, require
condominium unit owners to obtain insurance covering their personal
liability and compensatory (but not consequential) damages to
another unit caused by the negligence of the owner or his or her
guests, residents, or invitees, or regardless of any negligence
originating from the unit. The personal liability of a unit owner or
association member must include the deductible of the owner whose
unit was damaged, any damage not covered by insurance required by
this subsection, as well as the decorating, painting, wall and floor
coverings, trim, appliances, equipment, and other furnishings. If
the unit owner does not purchase or produce evidence of insurance
requested by the board, the directors may purchase the insurance
coverage and charge the premium cost back to the unit owner. In no
event is the board liable to any person either with regard to its
decision not to purchase the insurance, or with regard to the timing
of its purchase of the insurance or the amounts or types of
coverages obtained.
(i) Certificates of insurance. Contractors and vendors
(except public utilities) doing business with a condominium
association under contracts exceeding $10,000 per year must provide
certificates of insurance naming the association, its board of
directors, and its managing agent as additional insured parties.
(j) Non-residential condominiums. The provisions of this
Section may be varied or waived in the case of a condominium
community in which all units are restricted to nonresidential use.
(k) Settlement of claims. Any insurer defending a liability
claim against a condominium association must notify the association
of the terms of the settlement no less than 10 days before settling
the claim. The association may not veto the settlement unless
otherwise provided by contract or statute.
(a) This Section shall be known
and may be cited as the Condominium and Common Interest Community
Risk Pooling Trust Act.
(b) The boards of managers or boards of directors, as the
case may be, of two or more condominium associations or common
interest community associations, are authorized to establish, with
the unit owners and the condominium or common interest community
associations as the beneficiaries thereof, a trust fund for the
purpose of providing protection of the participating condominium and
common interest community associations against the risk of financial
loss due to damage to, destruction of or loss of property, or the
imposition of legal liability as required or authorized under this
Act or the declaration of the condominium or common interest
community association.
(c) The trust fund shall be established and amended only by a
written instrument which shall be filed with and approved by the
Director of Insurance prior to its becoming effective.
(d) No association shall be a beneficiary of the trust fund
unless it shall be incorporated under the laws of this State.
(e) The trust fund is authorized to indemnify the condominium
and common interest community association beneficiaries thereof
against the risk of loss due to damage, destruction or loss to
property or imposition of legal liability as required or authorized
under this Act or the declaration of the condominium or common
interest community association. Risks assumed by the trust fund may
be pooled and shared with other trust funds established under this
Section.
(f) (Blank).
(g) (Blank).
(h) No trustee of the trust fund shall be paid a salary or
receive other compensation, except that the written trust instrument
may provide for reimbursement for actual expenses incurred on behalf
of the trust fund.
(i) (Blank).
(j) (Blank).
(k) (Blank).
(l) Each trust fund shall file annually with the Director of
Insurance a full independently audited financial statement.
(m) (Blank).
(n) (Blank).
(o) (Blank).
(p) (Blank).
(q) (Blank).
(r) The Director of Insurance shall have with respect to
trust funds established under this Section the powers of examination
conferred upon him relative to insurance companies by Section 132 of
the Illinois Insurance Code.
(s) (Blank).
(t) (Blank).
(u) Trust funds established under and which fully comply with
this Section shall not be considered member insurance companies or
to be in the business of insurance nor shall the provision of
Article XXXIV of the Illinois Insurance Code apply to any such trust
fund established under this Section.
(v) (Blank).
(w) The Director of Insurance shall adopt reasonable rules
pertaining to the standards of coverage and administration of trust
funds authorized under this Section.
Sec. 13.
APPLICATION OF INSURANCE PROCEEDS TO RECONSTRUCTION.
In case of fire or any other disaster the insurance proceeds, if
sufficient to reconstruct the building, shall be applied to such
reconstruction. Reconstruction of the building as used in this and
succeeding Section 14 of this Act, means restoring the building to
substantially the same condition in which it existed prior to the
fire or other disaster, with each unit and the common elements
having the same vertical and horizontal boundaries as before.
Sec. 14.
DISPOSITION OF PROPERTY WHERE INSURANCE PROCEEDS ARE INSUFFICIENT
FOR RECONSTRUCTION.
(a) In case of fire or other disaster, if the insurance
proceeds are insufficient to reconstruct the building and the unit
owners and all other parties in interest do not voluntarily make
provision for reconstruction of the building within 180 days from
the date of damage or destruction, the board of managers may record
a notice setting forth such facts and upon the recording of such
notice:
(1) The property shall be deemed to be owned in common by the
unit owners;
(2) The undivided interest in the property owned in common
which shall appertain to each unit owner shall be the percentage of
undivided interest previously owned by such owner in the common
elements;
(3) Any liens affecting any of the units shall be deemed to
be transferred in accordance with the existing priorities to the
undivided interest of the unit owner in the property as provided
herein; and
(4) The property shall be subject to an action for partition
at the suit of any unit owner, in which event the net proceeds of
sale, together with the net proceeds of the insurance on the
property, if any, shall be considered as one fund and shall be
divided among all the unit owners in a percentage equal to the
percentage of undivided interest owned by each owner in the
property, after first paying out of the respective shares of the
unit owners, to the extent sufficient for the purpose, all liens on
the undivided interest in the property owned by each unit owner.
(b) In the case of fire or other disaster in which fewer than
1/2 of the units are rendered uninhabitable: the condominium
instruments may provide for the reconstruction of the building or
other portion of the property, if the insurance proceeds are
insufficient to reconstruct, upon the affirmative vote of not fewer
than 3/4 of the owners voting at a meeting called for that purpose.
The meeting shall be held within 30 days following the final
adjustment of insurance claims, if any. Otherwise, such meeting
shall be held within 90 days of the occurrence. At such meeting the
board of managers, or its representative, shall present to the
members present an estimate of the cost of repair or reconstruction,
and the estimated amount of necessary assessments against each unit
owner.
(c) In the case of fire or other disaster, the condominium
instruments may provide for the withdrawal of any portion of the
property if the insurance proceeds are insufficient to reconstruct
the portion of the property affected. Upon the withdrawal of any
unit or portion thereof, the percentage of interest in the common
elements appurtenant to such unit or portion thereof shall be
reallocated among the remaining units on the basis of the percentage
of interest of each remaining unit. If only a portion of a unit is
withdrawn, the percentage of interest appurtenant to that unit shall
be reduced accordingly, upon the basis of diminution in market value
of the unit, as determined by the board of managers. The payment of
just compensation, or the allocation of any insurance, or other
proceeds to any withdrawing or remaining unit owner shall be on an
equitable basis, which need not be a unit’s percentage interest. Any
insurance or other proceeds available in connection with the
withdrawal of any portion of the common elements, not necessarily
including the limited common elements, shall be allocated on the
basis of each unit owner’s percentage interest therein. The
declaration may provide that proceeds available from the withdrawal
of any limited common element will be distributed in accordance with
the interests of those entitled to their use. The condominium
instruments shall provide for the cessation of responsibility for
the payment of assessments for any unit or portion thereof withdrawn
from the condominium.
Sec. 14.1. DISPOSITION OR REMOVAL OF ANY
PORTION OF THE PROPERTY.
(a) The condominium instruments
may provide for the withdrawal of any portion of the property in
connection with eminent domain proceedings in compliance with the
provisions of this Act. Upon the withdrawal of any unit or portion
thereof, the percentage of interest in the common elements
appurtenant to such unit or portion thereof shall be reallocated
among the remaining units on the basis of the percentage of interest
of each remaining unit. If only a portion of a unit is withdrawn,
the percentage of interest appurtenant to that unit shall be reduced
accordingly, upon the basis of diminution in market value of the
unit, as determined by the board of managers. The allocation of any
condemnation award or other proceeds to any withdrawing or remaining
unit owner shall be on an equitable basis, which need not be a
unit’s percentage interest. Any condemnation award or other proceeds
available in connection with the withdrawal of any portion of the
common elements, not necessarily including the limited common
elements, shall be allocated on the basis of each unit owner’s
percentage interest therein. The declaration may provide that
proceeds available from the withdrawal of any limited common element
will be distributed in accordance with the interests of those
entitled to their use. The condominium instruments shall provide for
the cessation of responsibility for the payment of assessments for
any unit or portion thereof withdrawn from the condominium. In the
event that the unit owners’ association is named as defendant in an
eminent domain proceeding on behalf of all unit owners, then the
payment of the proceeds of the eminent domain proceeding
attributable to the taking or damaging of the common element shall
be according this Section unless the condominium instrument or
declaration of a common interest community expressly provides for
different procedures. This Section shall also apply to eminent
domain proceedings in which the unit owners’ association of a common
interest community is named as a defendant on behalf of all unit
owners.
(b) Notwithstanding anything to the contrary contained in
this Section, in a leasehold condominium, any allocation of any
condemnation award or other proceeds available in connection with
the withdrawal of any portion of the property shall include an
equitable allocation to the lessor. The allocation shall take into
account any provisions of the lease described in item (x) of Section
2 of this Act concerning such allocations.
Unless the condominium instrument expressly provides for a greater
percentage or different procedures a two-thirds majority of the unit
owners at a meeting of unit owners duly called for such purpose may
elect to dedicate a portion of the common elements to a public body
for use as, or in connection with, a street or utility. Where such a
dedication is made, nothing in this Act or any other law shall be
construed to require that the real property taxes of every unit of
the condominium must be paid prior to recordation of the dedication.
Sec. 14.3. GRANTING OF EASEMENT FOR LAYING
OF CABLE TELEVISION CABLE.
Unless the condominium instrument expressly provides for a greater
percentage or different procedures a majority of more than 50% of
the unit owners at a meeting of unit owners duly called for such
purpose may authorize the granting of an easement for the laying of
cable television cable. The grant of such easement shall be
according to the terms and conditions of the local ordinance
providing for cable television in the municipality.
Sec. 14.4. GRANTING OF EASEMENT TO A
GOVERNMENTAL BODY FOR PROTECTION AGAINST WATER DAMAGE OR EROSION.
Unless the condominium instrument expressly provides for a greater
percentage or different procedures, a majority of more than 50% of
the unit owners at a meeting of unit owners duly called for such
purpose may authorize the granting of an easement to a governmental
body for construction, maintenance or repair of a project for
protection against water damage or erosion.
(a) Unless a greater percentage
is provided for in the declaration or bylaws, and notwithstanding
the provisions of Sections 13 and 14 hereof, a majority of the unit
owners where the property contains 2 units, or not less than 66 2/3%
where the property contains three units, and not less than 75% where
the property contains 4 or more units may, by affirmative vote at a
meeting of unit owners duly called for such purpose, elect to sell
the property. Such action shall be binding upon all unit owners, and
it shall thereupon become the duty of every unit owner to execute
and deliver such instruments and to perform all acts as in manner
and form may be necessary to effect such sale, provided, however,
that any unit owner who did not vote in favor of such action and who
has filed written objection thereto with the manager or board of
managers within 20 days after the date of the meeting at which such
sale was approved shall be entitled to receive from the proceeds of
such sale an amount equivalent to the value of his interest, as
determined by a fair appraisal, less the amount of any unpaid
assessments or charges due and owing from such unit owner.
(b) If there is a disagreement as to the value of the
interest of a unit owner who did not vote in favor of the sale of
the property, that unit owner shall have a right to designate an
expert in appraisal or property valuation to represent him, in which
case, the prospective purchaser of the property shall designate an
expert in appraisal or property valuation to represent him, and both
of these experts shall mutually designate a third expert in
appraisal or property valuation. The 3 experts shall constitute a
panel to determine by vote of at least 2 of the members of the
panel, the value of that unit owner’s interest in the property.
All of the unit owners may remove the property from the provisions
of this Act by an instrument to that effect, duly recorded, provided
that the holders of all liens affecting any of the units consent
thereto or agree, in either case by instruments duly recorded, that
their liens be transferred to the undivided interest of the unit
owner. Upon such removal the property shall be deemed to be owned in
common by all the owners. The undivided interest in the property
owned in common which shall appertain to each owner shall be the
percentage of undivided interest previously owned by such owner in
the common elements.
(a) The administration of every property shall be governed by
bylaws, which may either be embodied in the declaration or in a
separate instrument, a true copy of which shall be appended to and
recorded with the declaration. No modification or amendment of the
declaration or bylaws shall be valid unless the same is set forth in
an amendment thereof and such amendment is duly recorded. An
amendment of the declaration or bylaws shall be deemed effective
upon recordation unless the amendment sets forth a different
effective date.
(b) Unless otherwise provided by this Act, amendments to
condominium instruments authorized to be recorded shall be executed
and recorded by the president of the association or such other
officer authorized by the board of managers.
The bylaws shall provide for at least the following:
(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.
(2) the powers and duties of the board;
(3) the compensation, if any, of the members of the board;
(4) the method of removal from office of members of the
board;
(5) that the board may engage the services of a manager or
managing agent;
(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 reserves, capital expenditures or repairs
or payment of real estate taxes;
(7) that the board of managers shall annually supply to 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;
(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 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, 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 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;
(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 filed and is pending in a court or
administrative tribunal, 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 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 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, 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;
(10) that the board shall meet at least 4 times annually;
(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;
(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;
(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 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;
(14) what percentage of the board of managers, if other than
a majority, shall constitute a quorum;
(15) provisions concerning notice of board meetings to
members of the board;
(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 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 spouse, parents, and children;
(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;
(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;
(19) that special meetings of the board of managers can be
called by the president or 25% of the members of the board; and
(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.
(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 association provide for a higher
percentage;
(2) that the association shall have one class of membership;
(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;
(4) the method of calling meetings of the unit owners;
(5) that special meetings of the members can be called by the
president, board of managers, or by 20% of unit owners;
(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;
(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;
(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 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;
(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 execution and, unless the condominium instruments or the written
proxy itself provide otherwise, is invalid after 11 months from the
date of its execution;
(B) 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 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 meeting, and thereby void any ballot previously
submitted by that unit owner;
(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.
(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
for election to the board of managers or such candidate’s
representative shall have the right to be present at the counting of
ballots at such election;
(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 contract shall be made available to the
association or its agents. For purposes of this subsection,
“installment contract” shall have the same meaning as set forth in
Section 1(e) of “An Act relating to installment contracts to sell
dwelling structures,” approved August 11, 1967, as amended;
(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 purposes; and
(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:
(A) merger or consolidation of the association;
(B) sale, lease, exchange, or other disposition (excluding
the mortgage or pledge) of all, or substantially all of the property
and assets of the association; and
(C) the purchase or sale of land or of units on behalf of all
unit owners.
(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.
(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.
(e) Election of a treasurer from among the board of managers,
who shall keep the financial records and books of account.
(f) Maintenance, repair and replacement of the common
elements and payments therefor, including the method of approving
payment vouchers.
(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 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 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.
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 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
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.
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.
(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.
(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.
(j) Designation and removal of personnel necessary for the
maintenance, repair and replacement of the common elements.
(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.
(l) Method of adopting and of amending administrative rules
and regulations governing the operation and use of the common
elements.
(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.
(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 thi
