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 this amendatory Act of 1984.
(ii) With regard to any lease entered into subsequent to the
effective date of this amendatory Act of 1989, the unit owner
leasing the unit shall deliver a copy of the signed lease to the
board or if the lease is oral, a memorandum of the lease, not later
than the date of occupancy or 10 days after the lease is signed,
whichever occurs first. In addition to any other remedies, by filing
an action jointly against the tenant and the unit owner, an
association may seek to enjoin a tenant from occupying a unit or
seek to evict a tenant under the provisions of Article IX of the
Code of Civil Procedure for failure of the lessor-owner to comply
with the leasing requirements prescribed by this Section or by the
declaration, bylaws, and rules and regulations. The board of
managers may proceed directly against a tenant, at law or in equity,
or under the provisions of Article IX of the Code of Civil
Procedure, for any other breach by tenant of any covenants, rules,
regulations or bylaws.
(o) The association shall have no authority to forbear the
payment of assessments by any unit owner.
(p) That when 30% or fewer of the units, by number, possess
over 50% in the aggregate of the votes in the association, any
percentage vote of members specified herein or in the condominium
instruments shall require the specified percentage by number of
units rather than by percentage of interest in the common elements
allocated to units that would otherwise be applicable. For purposes
of this subsection (p), when making a determination of whether 30%
or fewer of the units, by number, possess over 50% In the aggregate
of the votes In the association, a unit shall not Include a garage
unit or a storage unit.
(q) That a unit owner may not assign, delegate, transfer,
surrender, or avoid the duties, responsibilities and liabilities of
a unit owner under this Act, the condominium instruments, or the
rules and regulations of the Association; and that such an attempted
assignment, delegation, transfer, surrender, or avoidance shall be
deemed void.
The provisions of this Section are
applicable to all condominium instruments recorded under this Act.
Any portion of a condominium instrument which contains provisions
contrary to these provisions shall be void as against public policy
and ineffective. Any such instrument which fails to contain the
provisions required by this Section shall be deemed to incorporate
such provisions by operation of law.
Sec. 18.1. INCORPORATION AS NOT-FOR-PROFIT
CORPORATION.
(a) The owner or owners of the
property, or the board of managers, may cause to be incorporated a
not-for-profit corporation under the General Not For Profit
Corporation Act of the State of Illinois for the purpose of
facilitating the administration and operation of the property.
(b) The Secretary of State shall include on the application
of the Articles of Incorporation under the General Not For Profit
Corporation Act and the annual report form and such other forms as
he deems necessary a question asking whether the corporation is a
condominium association under the provisions of this Act.
(c) The Secretary of State shall maintain a computer record
of all not for profit corporations which are condominium
associations in this State and their current officers and members of
the Board of Managers or Board of Directors, as shown on the latest
annual report or the articles of incorporation, whichever is more
current.
(d) The board of directors of such corporation shall
constitute the board of managers provided for in this Act, and all
of the rights, titles, powers, privileges and obligations vested in
or imposed upon the board of managers in this Act and in the
declaration may be held or performed by such corporation or by the
duly elected members of the board of directors thereof and their
successors in office.
(e) Nothing in this Section shall be construed to affect the
ownership of the property.
Sec. 18.2. ADMINISTRATION OF PROPERTY PRIOR
TO ELECTION OF INITIAL BOARD OF MANAGERS.
(a) Until election of the
initial board of managers that is comprised of a majority of unit
owners other than the developer (first unit owner board of
managers), the same rights, titles, powers, privileges, trusts,
duties and obligations vested in or imposed upon the board of
managers by this Act and in the declaration and bylaws shall be held
and performed by the developer.
(b)
(i) The election of the first unit owner board of managers
shall be held not later than 60 days after the conveyance by the
developer of 75% of the units, or 3 years after the recording of the
declaration, whichever is earlier. The developer shall give at least
21 days notice of such meeting to elect the first unit owner board
of managers and shall provide to any unit owner within 3 working
days of the request, the names, addresses, and weighted vote of each
unit owner entitled to vote at such meeting. Any unit owner shall be
provided with the same information within 10 days of receipt of the
request, with respect to each subsequent meeting to elect members of
the Board of Managers.
(ii) In the event the developer does not call a meeting for
the purpose of election of the board of managers within the time
provided in this subsection (b), unit owners holding 20% of the
interest in the association may call a meeting by filing a petition
for such meeting with the developer, after which said unit owners
shall have authority to send notice of said meeting to the unit
owners and to hold such meeting.
(c) If the first unit board of managers is not elected at the
time so established, the developer shall continue in office for a
period of 30 days whereupon written notice of his resignation shall
be sent to all of the unit owners entitled to vote at such election.
(d) Within 60 days following the election of the first unit
owner board of managers, the developer shall deliver to the board of
managers:
(1) All original documents as recorded or filed pertaining to
the property, its administration, and the association, such as the
declaration, by-laws, articles of incorporation, other condominium
instruments, annual reports, minutes and rules and regulations,
contracts, leases, or other agreements entered into by the
Association. If any original documents are unavailable, a copy may
be provided if certified by affidavit of the developer, or an
officer or agent of the developer, as being a complete copy of the
actual document recorded as filed;
(2) A detailed accounting by the developer, setting forth the
source and nature of receipts and expenditures in connection with
the management, maintenance and operation of the property and copies
of all insurance policies and a list of any loans or advances to the
association which are outstanding;
(3) Association funds, which shall have been at all times
segregated from any other moneys of the developer;
(4) A schedule of all real or personal property, equipment
and fixtures belonging to the association, including documents
transferring the property, warranties, if any, for all real and
personal property and equipment, deeds, title insurance policies,
and all tax bills.
(5) A list of all litigation, administrative action and
arbitrations involving the association, any notices of governmental
bodies involving actions taken or which may be taken concerning the
association, engineering and architectural drawings and
specifications as approved by any governmental authority, all other
documents filed with any other governmental authority, all
governmental certificates, correspondence involving enforcement of
any association requirements, copies of any documents relating to
disputes involving unit owners, originals of all documents relating
to everything listed in this subparagraph.
(e) Upon election of the first
unit owner board of managers, any contract, lease, or other
agreement made prior to the date of election of the first unit owner
board by or on behalf of unit owners, individually or collectively,
the unit owners’ association, the board of managers, or the
developer or its affiliates which extends for a period of more than
2 years from the date of the election shall be subject to
cancellation by a majority of the votes of the unit owners other
than the developer cast at a special meeting of members called for
that purpose during the 180 day period beginning on the date of the
election of the first unit owner board. At least 60 days prior to
the expiration of the 180 day cancellation period, the board of
managers shall send notice to every unit owner, notifying them of
this provision, what contracts, leases and other agreements are
affected, and the procedure for calling a meeting of the unit owners
for the purpose of voting on termination of such contracts, leases
or other agreements. During the 180 day cancellation period the
other party to the contract, lease, or other agreement shall also
have the right of cancellation. The cancellation shall be effective
30 days after mailing notice by certified mail, return receipt
requested, to the last known address of the other parties to the
contract, lease, or other agreement.
(f) The statute of limitations for any actions in law or
equity which the condominium association may bring shall not begin
to run until the unit owners have elected a majority of the members
of the board of managers.
(g) If the developer fails to fully comply with subsection
(d) within the 60 days provided and fails to fully comply within 10
days of written demand mailed by registered or certified mail to his
or her last known address, the board may bring an action to compel
compliance with subsection (d). If the court finds that any of the
required deliveries were not made within the required period, the
board shall be entitled to recover its reasonable attorneys’ fees
and costs incurred from and after the date of expiration of the 10
day demand.
The unit owners’ association is responsible for the overall
administration of the property through its duly elected board of
managers. Each unit owner shall be a member of the association. The
association, whether or not it is incorporated shall have those
powers and responsibilities specified in the General Not For Profit
Corporation Act of 1986 that are not inconsistent with this Act or
the condominium instruments, including but not limited to the power
to acquire and hold title to land. Such land is not part of the
common elements unless and until it has been added by an amendment
of the condominium instruments, properly executed and placed of
record as required by this Act. The association shall have and
exercise all powers necessary or convenient to effect any or all of
the purposes for which the association is organized, and to do every
other act not inconsistent with law which may be appropriate to
promote and attain the purposes set forth in this Act or in the
condominium instruments.
Sec. 18.4. POWERS AND DUTIES OF BOARD OF
MANAGERS.
The board of managers shall exercise for the association all powers,
duties and authority vested in the association by law or the
condominium instruments except for such powers, duties and authority
reserved by law to the members of the association. The powers and
duties of the board of managers shall include, but shall not be
limited to, the following:
(a) To provide for the
operation, care, upkeep, maintenance, replacement and improvement of
the common elements. Nothing in this subsection (a) shall be deemed
to invalidate any provision in a condominium instrument placing
limits on expenditures for the common elements, provided, that such
limits shall not be applicable to expenditures for repair,
replacement, or restoration of existing portions of the common
elements. The term “repair, replacement or restoration” means
expenditures to deteriorated or damaged portions of the property
related to the existing decorating, facilities, or structural or
mechanical components, interior or exterior surfaces, or energy
systems and equipment with the functional equivalent of the original
portions of such areas. Replacement of the common elements may
result in an improvement over the original quality of such elements
or facilities; provided that, unless the improvement is mandated by
law or is an emergency as defined in item (iv) of subparagraph (8)
of paragraph (a) of Section 18, if the improvement results in a
proposed expenditure exceeding 5% of the annual budget, the board of
managers, upon written petition by unit owners with 20% of the votes
of the association delivered to the board within 14 days of the
board action to approve the expenditure, shall call a meeting of the
unit owners within 30 days of the date of delivery of the petition
to consider the expenditure. Unless a majority of the total votes of
the unit owners are cast at the meeting to reject the expenditure,
it is ratified.
(b) To prepare, adopt and distribute the annual budget for
the property.
(c) To levy and expend assessments.
(d) To collect assessments from unit owners.
(e) To provide for the employment and dismissal of the
personnel necessary or advisable for the maintenance and operation
of the common elements.
(f) To obtain adequate and appropriate kinds of insurance.
(g) To own, convey, encumber, lease and otherwise deal with
units conveyed to or purchased by it.
(h) To adopt and amend rules and regulations covering the
details of the operation and use of the property, after a meeting of
the unit owners called for the specific purpose of discussing the
proposed rules and regulations. Notice of the meeting shall contain
the full text of the proposed rules and regulations, and the meeting
shall conform to the requirements of Section 18(b) of this Act,
except that no quorum is required at the meeting of the unit owners
unless the declaration, bylaws or other condominium instrument
expressly provides to the contrary. However, no rule or regulation
may impair any rights guaranteed by the First Amendment to the
Constitution of the United States or Section 4 of Article I of the
Illinois Constitution including, but not limited to, the free
exercise of religion, nor may any rules or regulations conflict with
the provisions of this Act or the condominium instruments. No rule
or regulation shall prohibit any reasonable accommodation for
religious practices, including the attachment of religiously
mandated objects to the front-door area of a condominium unit.
(i) To keep detailed, accurate records of the receipts and
expenditures affecting the use and operation of the property.
(j) To have access to each unit from time to time as may be
necessary for the maintenance, repair or replacement of any common
elements or for making emergency repairs necessary to prevent damage
to the common elements or to other units.
(k) To pay 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 and levied upon the
real property of the condominium.
(l) To impose charges for late payment of a unit owner’s
proportionate share of the common expenses, or any other expenses
lawfully agreed upon, and after notice and an opportunity to be
heard, to levy reasonable fines for violation of the declaration,
by-laws, and rules and regulations of the association.
(m) Unless the condominium instruments expressly provide to
the contrary, by a majority vote of the entire board of managers, to
assign the right of the association to future income from common
expenses or other sources, and to mortgage or pledge substantially
all of the remaining assets of the association.
(n) To record the dedication of a portion of the common
elements to a public body for use as, or in connection with, a
street or utility where authorized by the unit owners under the
provisions of Section 14.2.
(o) To record the granting of an easement for the laying of
cable television cable where authorized by the unit owners under the
provisions of Section 14.3; to obtain, if available and determined
by the board to be in the best interests of the association, cable
television service for all of the units of the condominium on a bulk
identical service and equal cost per unit basis; and to assess and
recover the expense as a common expense and, if so determined by the
board, to assess each and every unit on the same equal cost per unit
basis.
(p) To seek relief on behalf of all unit owners when
authorized pursuant to subsection (c) of Section 10 from or in
connection with the assessment or levying of real property taxes,
special assessments, and any other special taxes or charges of the
State of Illinois or of any political subdivision thereof or of any
lawful taxing or assessing body.
(q) To reasonably accommodate the needs of a handicapped unit
owner as required by the federal Civil Rights Act of 1968, the Human
Rights Act and any applicable local ordinances in the exercise of
its powers with respect to the use of common elements or approval of
modifications in an individual unit.
(r) To accept service of a notice of claim for purposes of
the Mechanics Lien Act on behalf of each respective member of the
Unit Owners’ Association with respect to improvements performed
pursuant to any contract entered into by the Board of Managers or
any contract entered into prior to the recording of the condominium
declaration pursuant to this Act, for a property containing more
than 8 units, and to distribute the notice to the unit owners within
7 days of the acceptance of the service by the Board of Managers.
The service shall be effective as if each individual unit owner had
been served individually with notice.
In the performance of their duties,
the officers and members of the board, whether appointed by the
developer or elected by the unit owners, shall exercise the care
required of a fiduciary of the unit owners.
The collection of assessments from unit owners by an association,
board of managers or their duly authorized agents shall not be
considered acts constituting a collection agency for purposes of the
Collection Agency Act.
The provisions of this Section are applicable to all condominium
instruments recorded under this Act. Any portion of a condominium
instrument which contains provisions contrary to these provisions
shall be void as against public policy and ineffective. Any such
instrument that fails to contain the provisions required by this
Section shall be deemed to incorporate such provisions by operation
of law.
(a) If the declaration, other
condominium instrument or other duly recorded covenants provide that
any of the powers of the unit owners associations are to be
exercised by or may be delegated to a nonprofit corporation or
unincorporated association that exercises those or other powers on
behalf of one or more condominiums, or for the benefit of the unit
owners of one or more condominiums such corporation or association
shall be a master association.
(b) There shall be included in the declaration, other
condominium instruments or other duly recorded covenants
establishing the powers and duties of the master association the
provisions set forth in subsections (c) through (h):
In interpreting subsections (c) through (h), the courts should
interpret these provisions so that they are interpreted consistently
with the similar parallel provisions found in other parts of this
Act.
(c) Meetings and finances.
(1) Each unit owner of a condominium subject to the authority
of the board of the master association shall receive, at least 30
days prior to the adoption thereof by the board of the master
association, a copy of the proposed annual budget.
(2) The board of the master association shall annually supply
to all unit owners of condominiums subject to the authority of the
board of the master association, an itemized accounting of the
common expenses for the preceding year actually incurred or paid,
together 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.
(3) Each unit owner of a condominium subject to the authority
of the board of the master association shall receive written notice
mailed or delivered no less than 10 and no more than 30 days prior
to any meeting of the board of the master association concerning the
adoption of the proposed annual budget or any increase in the
budget, or establishment of an assessment.
(4) Meetings of the board of the master association shall be
open to any unit owner in a condominium subject to the authority of
the board of the master association, except for the portion of any
meeting held:
(i) to discuss litigation when an action against or on behalf
of the particular master association has been filed and is pending
in a court or administrative tribunal, or when the board of the
master association 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
master association or unpaid common expenses owed to the master
association.
Any vote on these matters shall be taken at a meeting or portion
thereof open to any unit owner of a condominium subject to the
authority of the master association.
Any unit owner may record the proceedings at meetings required to be
open by this Act by tape, film or other means; the board may
prescribe reasonable rules and regulations to govern the right to
make such recordings. Notice of meetings shall be mailed or
delivered at least 48 hours prior thereto, unless a written waiver
of such notice is signed by the persons entitled to notice before
the meeting is convened. Copies of notices of meetings of the board
of the master association 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 the master
association. Where there is no common entranceway for 7 or more
units, the board of the master association may designate one or more
locations in the proximity of these units where the notices of
meetings shall be posted.
(5) If the declaration provides for election by unit owners
of members of the board of directors in the event of a resale of a
unit in the master association, 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 directors at any meeting of the unit owners called
for purposes of electing members of the board, and shall have the
right to vote for the election of members of the board of directors
and to be elected to and serve on the board of directors unless the
seller expressly retains in writing any or all of those 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 subsection (e) of Section 1 of the
Dwelling Unit Installment Contract Act.
(6) The board of the master association shall have the
authority to establish and maintain a system of master metering of
public utility services and to collect payments in connection
therewith, subject to the requirements of the Tenant Utility Payment
Disclosure Act.
(7) The board of the master association or a common interest
community association shall have the power, after notice and an
opportunity to be heard, to levy and collect reasonable fines from
members for violations of the declaration, bylaws, and rules and
regulations of the master association or the common interest
community association. Nothing contained in this subdivision (7)
shall give rise to a statutory lien for unpaid fines.
(8) 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.
(d) Records.
(1) The board of the master association shall maintain the
following records of the association and make them available for
examination and copying at convenient hours of weekdays by any unit
owners in a condominium subject to the authority of the board or
their mortgagees and their duly authorized agents or attorneys:
(i) Copies of the recorded declaration, other condominium
instruments, other duly recorded covenants and bylaws and any
amendments, articles of incorporation of the master association,
annual reports and any rules and regulations adopted by the master
association or its Board shall be available. Prior to the
organization of the master association, the developer shall maintain
and make available the records set forth in this subdivision (d)(1)
for examination and copying.
(ii) Detailed accurate records in chronological order of the
receipts and expenditures affecting the common areas, specifying and
itemizing the maintenance and repair expenses of the common areas
and any other expenses incurred, and copies of all contracts,
leases, or other agreements entered into by the master association
shall be maintained.
(iii) The minutes of all meetings of the master association
and the board of the master association shall be maintained for not
less than 7 years.
(iv) Ballots and proxies related thereto, if any, for any
election held for the board of the master association and for any
other matters voted on by the unit owners shall be maintained for
not less than one year.
(v) Such other records of the master association as are
available for inspection by members of a not-for-profit corporation
pursuant to Section 107.75 of the General Not For Profit Corporation
Act of 1986 shall be maintained.
(vi) With respect to units owned by a land trust, if a
trustee designates, in writing, a person to cast votes on behalf of
the unit owner, the designation shall remain in effect until a
subsequent document is filed with the association.
(2) Where a request for records under this subsection is made
in writing to the board of managers or its agent, failure to provide
the requested record or to respond within 30 days shall be deemed a
denial by the board of directors.
(3) A reasonable fee may be charged by the master association
or its board for the cost of copying.
(4) If the board of directors fails to provide records
properly requested under subdivision (d)(1) within the time period
provided in subdivision (d)(2), the unit owner may seek appropriate
relief, including an award of attorney’s fees and costs.
(e) The board of directors shall have standing and capacity
to act in a representative capacity in relation to matters involving
the common areas of the master association or more than one unit, on
behalf of the unit owners as their interests may appear.
(f) Administration of property prior to election of the
initial board of directors.
(1) Until the election, by the unit owners or the boards of
managers of the underlying condominium associations, of the initial
board of directors of a master association whose declaration is
recorded on or after August 10, 1990, the same rights, titles,
powers, privileges, trusts, duties and obligations that are vested
in or imposed upon the board of directors by this Act or in the
declaration or other duly recorded covenant shall be held and
performed by the developer.
(2) The election of the initial board of directors of a
master association whose declaration is recorded on or after August
10, 1990, by the unit owners or the boards of managers of the
underlying condominium associations, shall be held not later than 60
days after the conveyance by the developer of 75% of the units, or 3
years after the recording of the declaration, whichever is earlier.
The developer shall give at least 21 days notice of the meeting to
elect the initial board of directors and shall upon request provide
to any unit owner within 3 working days of the request, the names,
addresses, and weighted vote of each unit owner entitled to vote at
the meeting. Any unit owner shall upon receipt of the request be
provided with the same information, within 10 days of the request,
with respect to each subsequent meeting to elect members of the
board of directors.
(3) If the initial board of directors of a master association
whose declaration is recorded on or after August 10, 1990 is not
elected by the unit owners or the members of the underlying
condominium association board of managers at the time established in
subdivision (f)(2), the developer shall continue in office for a
period of 30 days, whereupon written notice of his resignation shall
be sent to all of the unit owners or members of the underlying
condominium board of managers entitled to vote at an election for
members of the board of directors.
(4) Within 60 days following the election of a majority of
the board of directors, other than the developer, by unit owners,
the developer shall deliver to the board of directors:
(i) All original documents as recorded or filed pertaining to
the property, its administration, and the association, such as the
declaration, articles of incorporation, other instruments, annual
reports, minutes, rules and regulations, and contracts, leases, or
other agreements entered into by the association. If any original
documents are unavailable, a copy may be provided if certified by
affidavit of the developer, or an officer or agent of the developer,
as being a complete copy of the actual document recorded or filed.
(ii) A detailed accounting by the developer, setting forth
the source and nature of receipts and expenditures in connection
with the management, maintenance and operation of the property,
copies of all insurance policies and a list of any loans or advances
to the association which are outstanding.
(iii) Association funds, which shall have been at all times
segregated from any other moneys of the developer.
(iv) A schedule of all real or personal property, equipment
and fixtures belonging to the association, including documents
transferring the property, warranties, if any, for all real and
personal property and equipment, deeds, title insurance policies,
and all tax bills.
(v) A list of all litigation, administrative action and
arbitrations involving the association, any notices of governmental
bodies involving actions taken or which may be taken concerning the
association, engineering and architectural drawings and
specifications as approved by any governmental authority, all other
documents filed with any other governmental authority, all
governmental certificates, correspondence involving enforcement of
any association requirements, copies of any documents relating to
disputes involving unit owners, and originals of all documents
relating to everything listed in this subparagraph.
(vi) If the developer fails to fully comply with this
paragraph (4) within the 60 days provided and fails to fully comply
within 10 days of written demand mailed by registered or certified
mail to his or her last known address, the board may bring an action
to compel compliance with this paragraph (4). If the court finds
that any of the required deliveries were not made within the
required period, the board shall be entitled to recover its
reasonable attorneys’ fees and costs incurred from and after the
date of expiration of the 10 day demand.
(5) With respect to any master association whose declaration
is recorded on or after August 10, 1990, any contract, lease, or
other agreement made prior to the election of a majority of the
board of directors other than the developer by or on behalf of unit
owners or underlying condominium associations, the association or
the board of directors, which extends for a period of more than 2
years from the recording of the declaration, shall be subject to
cancellation by more than 1/2 of the votes of the unit owners, other
than the developer, cast at a special meeting of members called for
that purpose during a period of 90 days prior to the expiration of
the 2 year period if the board of managers is elected by the unit
owners, otherwise by more than 1/2 of the underlying condominium
board of managers. At least 60 days prior to the expiration of the
2-year period, the board of directors, or, if the board is still
under developer control, then the board of managers or the developer
shall send notice to every unit owner or underlying condominium
board of managers, notifying them of this provision, of what
contracts, leases and other agreements are affected, and of the
procedure for calling a meeting of the unit owners or for action by
the underlying condominium board of managers for the purpose of
acting to terminate such contracts, leases or other agreements.
During the 90 day period the other party to the contract, lease, or
other agreement shall also have the right of cancellation.
(6) The statute of limitations for any actions in law or
equity which the master association may bring shall not begin to run
until the unit owners or underlying condominium board of managers
have elected a majority of the members of the board of directors.
(g) In the event of any resale of a unit in a master
association by a unit owner other than the developer, the owner
shall obtain from the board of directors and shall make available
for inspection to the prospective purchaser, upon demand, the
following:
(1) A copy of the declaration, other instruments and any
rules and regulations.
(2) A statement of any liens, including a statement of the
account of the unit setting forth the amounts of unpaid assessments
and other charges due and owing.
(3) A statement of any capital expenditures anticipated by
the association within the current or succeeding 2 fiscal years.
(4) A statement of the status and amount of any reserve for
replacement fund and any portion of such fund earmarked for any
specified project by the board of directors.
(5) A copy of the statement of financial condition of the
association for the last fiscal year for which such a statement is
available.
(6) A statement of the status of any pending suits or
judgments in which the association is a party.
(7) A statement setting forth what insurance coverage is
provided for all unit owners by the association.
(8) A statement that any improvements or alterations made to
the unit, or any part of the common areas assigned thereto, by the
prior unit owner are in good faith believed to be in compliance with
the declaration of the master association.
The principal officer of the unit
owner’s association or such other officer as is specifically
designated shall furnish the above information when requested to do
so in writing, within 30 days of receiving the request.
A reasonable fee covering the direct out-of-pocket cost of copying
and providing such information may be charged by the association or
its board of directors to the unit seller for providing the
information.
(h) Errors and omissions.
(1) If there is an omission or error in the declaration, or
other instrument of the master association, the master association
may correct the error or omission by an amendment to the
declaration, or other instrument, as may be required to conform it
to this Act, to any other applicable statute, or to the declaration.
The amendment shall be adopted by vote of two-thirds of the members
of the board of directors or by a majority vote of the unit owners
at a meeting called for that purpose, unless the Act or the
declaration of the master association specifically provides for
greater percentages or different procedures.
(2) If, through a scrivener’s error, a unit has not been
designated as owning an appropriate undivided share of the common
areas or does not bear an appropriate share of the common expenses
or, if all of the common expenses or all of the common elements in
the condominium have not been distributed in the declaration, so
that the sum total of the shares of common areas which have been
distributed or the sum total of the shares of the common expenses
fail to equal 100%, or if it appears that more than 100% of the
common elements or common expenses have been distributed, the error
may be corrected by operation of law by filing an amendment to the
declaration, approved by vote of two-thirds of the members of the
board of directors or a majority vote of the unit owners at a
meeting called for that purpose, which proportionately adjusts all
percentage interests so that the total is equal to 100%, unless the
declaration specifically provides for a different procedure or
different percentage vote by the owners of the units and the owners
of mortgages thereon affected by modification being made in the
undivided interest in the common areas, the number of votes in the
unit owners association or the liability for common expenses
appertaining to the unit.
(3) If an omission or error or a scrivener’s error in the
declaration, or other instrument is corrected by vote of two-thirds
of the members of the board of directors pursuant to the authority
established in subdivisions (h)(1) or (h)(2) of this Section, the
board, upon written petition by unit owners with 20% of the votes of
the association or resolutions adopted by the board of managers or
board of directors of the condominium and common interest community
associations which select 20% of the members of the board of
directors of the master association, whichever is applicable,
received within 30 days of the board action, shall call a meeting of
the unit owners or the boards of the condominium and common interest
community associations which select members of the board of
directors of the master association within 30 days of the filing of
the petition or receipt of the condominium and common interest
community association resolution to consider the board action.
Unless a majority of the votes of the unit owners of the association
are cast at the meeting to reject the action, or board of managers
or board of directors of condominium and common interest community
associations which select over 50% of the members of the board of
the master association adopt resolutions prior to the meeting
rejecting the action of the board of directors of the master
association, it is ratified whether or not a quorum is present.
(4) The procedures for amendments set forth in this
subsection (h) cannot be used if such an amendment would materially
or adversely affect property rights of the unit owners unless the
affected unit owners consent in writing. This Section does not
restrict the powers of the association to otherwise amend the
declaration, bylaws, or other condominium instruments, but
authorizes a simple process of amendment requiring a lesser vote for
the purpose of correcting defects, errors, or omissions when the
property rights of the unit owners are not materially or adversely
affected.
(5) If there is an omission or error in the declaration or
other instruments, that may not be corrected by an amendment
procedure set forth in subdivision (h)(1) or (h)(2) of this Section,
then the circuit court in the county in which the master association
is located shall have jurisdiction to hear a petition of one or more
of the unit owners thereon or of the association, to correct the
error or omission, and the action may be a class action. The court
may require that one or more methods of correcting the error or
omission be submitted to the unit owners to determine the most
acceptable correction. All unit owners in the association must be
joined as parties to the action. Service of process on owners may be
by publication, but the plaintiff shall furnish all unit owners not
personally served with process with copies of the petition and final
judgment of the court by certified mail, return receipt requested,
at their last known address.
(6) Nothing contained in this Section shall be construed to
invalidate any provision of a declaration authorizing the developer
to amend an instrument prior to the latest date on which the initial
membership meeting of the unit owners must be held, whether or not
it has actually been held, to bring the instrument into compliance
with the legal requirements of the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, the Federal
Housing Administration, the United States Veterans Administration or
their respective successors and assigns.
(i) The provisions of subsections (c) through (h) are
applicable to all declarations, other condominium instruments, and
other duly recorded covenants establishing the powers and duties of
the master association recorded under this Act. Any portion of a
declaration, other condominium instrument or other duly recorded
covenant establishing the powers and duties of a master association
which contains provisions contrary to the provisions of subsection
(c) through (h) shall be void as against public policy and
ineffective. Any declaration, other condominium instrument, or other
duly recorded covenant establishing the powers and duties of the
master association, which fails to contain the provisions required
by subsections (c) through (h) shall be deemed to incorporate such
provisions by operation of law.
(j) The provisions of subsections (c) through (h) are
applicable to all common interest community associations and their
unit owners for common interest community associations which are
subject to the provisions of Section 9-102(a) (8) of the Code of
Civil Procedure. For purposes of this subsection the terms “common
interest community” and “unit owners” shall have the same meaning as
set forth in Section 9-102(c) of the Code of Civil Procedure.
Sec. 18.6. DISPLAY OF AMERICAN FLAG OR
MILITARY FLAG.
(a) Notwithstanding any provision in the declaration, bylaws,
rules, regulations, or agreements or other instruments of a
condominium association or a master association or a common interest
community association or a board’s construction of any of those
instruments, a board may not prohibit the display of the American
flag or a military flag, or both, on or within the limited common
areas and facilities of a unit owner or on the immediately adjacent
exterior of the building in which the unit of a unit owner is
located. A board may adopt reasonable rules and regulations,
consistent with Sections 4 through 10 of Chapter 1 of Title 4 of the
United States Code, regarding the placement and manner of display of
the American flag and a board may adopt reasonable rules and
regulations regarding the placement and manner of display of a
military flag. A board may not prohibit the installation of a
flagpole for the display of the American flag or a military flag, or
both, on or within the limited common areas and facilities of a unit
owner or on the immediately adjacent exterior of the building in
which the unit of a unit owner is located, but a board may adopt
reasonable rules and regulations regarding the location and size of
flagpoles.
(b) As used in this Section:
“American flag” means the flag of the United States (as defined in
Section 1 of Chapter 1 of Title 4 of the United States Code and the
Executive Orders entered in connection with that Section) made of
fabric, cloth, or paper displayed from a staff or flagpole or in a
window, but “American flag” does not include a depiction or emblem
of the American flag made of lights, paint, roofing, siding, paving
materials, flora, or balloons, or any other similar building,
landscaping, or decorative component.
“Board” includes a board of managers or a board of a master
association or a common interest community association.
“Military flag” means a flag of any branch of the United States
armed forces or the Illinois National Guard made of fabric, cloth,
or paper displayed from a staff or flagpole or in a window, but
“military flag” does not include a depiction or emblem of a military
flag made of lights, paint, roofing, siding, paving materials,
flora, or balloons, or any other similar building, landscaping, or
decorative component.
Sec. 18.7. STANDARDS FOR COMMUNITY
ASSOCIATION MANAGERS.
(a) “Community association” means an association in which
membership is a condition of ownership or shareholder interest of a
unit in a condominium, cooperative, townhouse, villa, or other
residential unit that is part of a residential development plan as a
master association or common interest community and that is
authorized to impose an assessment and other costs that may become a
lien on the unit or lot.
(b) “Community association manager” means an individual who
administers for compensation the coordination of financial,
administrative, maintenance, or other duties called for in the
management contract, including individuals who are direct employees
of a community association. A manager does not include support
staff, such as bookkeepers, administrative assistants, secretaries,
property inspectors, or customer service representatives.
(c) Requirements. To perform services as a community
association manager, an individual must meet these requirements:
(1) shall have attained the age of 21 and be a citizen or
legal permanent resident of the United States;
(2) shall not have been convicted of forgery, embezzlement,
obtaining money under false pretenses, larceny, extortion,
conspiracy to defraud or other similar offense or offenses;
(3) shall have a working knowledge of the fundamentals of
community association management, including the Condominium Property
Act, the Illinois Not-for-Profit Corporation Act, and any other laws
pertaining to community association management; and
(4) shall not have engaged in the following activities:
failure to cooperate with any law enforcement agency in the
investigation of a complaint; or failure to produce any document,
book, or record in the possession or control of the community
association manager after a request for production of that document,
book, or record in the course of an investigation of a complaint.
(d) Access to community association funds. For community
associations of 6 or more units, apartments, townhomes, villas or
other residential units, a community association manager or the firm
with whom the manager is employed shall not solely and exclusively
have access to and disburse funds of a community association unless:
(1) There is a fidelity bond in place.
(2) The fidelity bond is in an amount not less than all
monies of that association in the custody or control of the
community association manager.
(3) The fidelity bond covers the community association
manager and all partners, officers, and employees of the firm with
whom the community association manager is employed during the term
of the bond, as well as the community association officers,
directors, and employees of the community association who control or
disburse funds.
(4) The insurance company issuing the bond may not cancel or
refuse to renew the bond without giving not less than 10 days’ prior
written notice to the community association.
(5) The community association shall secure and pay for the
bond.
(e) A community association manager who provides community
association management services for more than one community
association shall maintain separate, segregated accounts for each
community association. The funds shall not, in any event, be
commingled with funds of the community association manager, the firm
of the community association manager, or any other community
association. The maintenance of these accounts shall be custodial,
and the accounts shall be in the name of the respective community
association.
(f) Exempt persons. Except as otherwise provided, this
Section does not apply to any person acting as a receiver, trustee
in bankruptcy, administrator, executor, or guardian acting under a
court order or under the authority of a will or of a trust
instrument.
(g) Right of Action.
(1) Nothing in this amendatory Act of the 95th General
Assembly shall create a cause of action by a unit owner,
shareholder, or community association member against a community
association manager or the firm of a community association manager.
(2) This amendatory Act of the 95th General Assembly shall
not impair any right of action by a unit owner or shareholder
against a community association board of directors under existing
law.
Sec. 19.
RECORDS OF THE ASSOCIATION — AVAILABILITY FOR EXAMINATION.
(a) The board of managers of every association shall keep and
maintain the following records, or true and complete copies of these
records, at the association’s principal office:
(1) the association’s declaration, bylaws, and plats of
survey, and all amendments of these;
(2) the rules and regulations of the association, if any;
(3) if the association is incorporated as a corporation, the
articles of incorporation of the association and all amendments to
the articles of incorporation;
(4) minutes of all meetings of the association and its board
of managers for the immediately preceding 7 years;
(5) all current policies of insurance of the association;
(6) all contracts, leases, and other agreements then in
effect to which the association is a party or under which the
association or the unit owners have obligations or liabilities;
(7) a current listing of the names, addresses, and weighted
vote of all members entitled to vote;
(8) ballots and proxies related to ballots for all matters
voted on by the members of the association during the immediately
preceding 12 months, including but not limited to the election of
members of the board of managers; and
(9) the books and records of account for the association’s
current and 10 immediately preceding fiscal years, including but not
limited to itemized and detailed records of all receipts and
expenditures.
(b) Any member of an association shall have the right to
inspect, examine, and make copies of the records described in
subdivisions (1), (2), (3), (4), and (5) of subsection (a) of this
Section, in person or by agent, at any reasonable time or times, at
the association’s principal office. In order to exercise this right,
a member must submit a written request to the association’s board of
managers or its authorized agent, stating with particularity the
records sought to be examined. Failure of an association’s board of
managers to make available all records so requested within 30 days
of receipt of the member’s written request shall be deemed a denial.
Any member who prevails in an enforcement action to compel
examination of records described in subdivisions (1), (2), (3), (4),
and (5) of subsection (a) of this Section shall be entitled to
recover reasonable attorney’s fees and costs from the association.
(c) (Blank).
(d) (Blank).
(e) Except as otherwise provided in subsection (g) of this
Section, any member of an association shall have the right to
inspect, examine, and make copies of the records described in
subdivisions (6), (7), (8), and (9) of subsection (a) of this
Section, in person or by agent, at any reasonable time or times but
only for a proper purpose, at the association’s principal office. In
order to exercise this right, a member must submit a written
request, to the association’s board of managers or its authorized
agent, stating with particularity the records sought to be examined
and a proper purpose for the request. Subject to the provisions of
subsection (g) of this Section, failure of an association’s board of
managers to make available all records so requested within 30
business days of receipt of the member’s written request shall be
deemed a denial; provided, however, that the board of managers of an
association that has adopted a secret ballot election process as
provided in Section 18 of this Act shall not be deemed to have
denied a member’s request for records described in subdivision (8)
of subsection (a) of this Section if voting ballots, without
identifying unit numbers, are made available to the requesting
member within 30 days of receipt of the member’s written request.
In an action to compel examination of records described in
subdivisions (6), (7), (8), and (9) of subsection (a) of this
Section, the burden of proof is upon the member to establish that
the member’s request is based on a proper purpose. Any member who
prevails in an enforcement action to compel examination of records
described in subdivisions (6), (7), (8), and (9) of subsection (a)
of this Section shall be entitled to recover reasonable attorney’s
fees and costs from the association only if the court finds that the
board of directors acted in bad faith in denying the member’s
request.
(f) The actual cost to the association of retrieving and
making requested records available for inspection and examination
under this Section shall be charged by the association to the
requesting member. If a member requests copies of records requested
under this Section, the actual costs to the association of
reproducing the records shall also be charged by the association to
the requesting member.
(g) Notwithstanding the provisions of subsection (e) of this
Section, unless otherwise directed by court order, an association
need not make the following records available for inspection,
examination, or copying by its members:
(1) documents relating to appointment, employment,
discipline, or dismissal of association employees;
(2) documents relating to actions pending against or on
behalf of the association or its board of managers in a court or
administrative tribunal;
(3) documents relating to actions threatened against, or
likely to be asserted on behalf of, the association or its board of
managers in a court or administrative tribunal;
(4) documents relating to common expenses or other charges
owed by a member other than the requesting member; and
(5) documents provided to an association in connection with
the lease, sale, or other transfer of a unit by a member other than
the requesting member.
(h) The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion of a
condominium instrument that contains provisions contrary to these
provisions shall be void as against public policy and ineffective.
Any condominium instrument that fails to contain the provisions
required by this Section shall be deemed to incorporate the
provisions by operation of law.
It is expressly provided that the rule of property known as the rule
against perpetuities and the rule of property known as the rule
restricting unreasonable restraints on alienation shall not be
applied to defeat any of the provisions of this Act.
If any provision of this Act or any section, sentence, clause,
phrase or word, or the application thereof in any circumstance, is
held invalid, the validity of the remainder of the Act and of the
application of any such provision, section, sentence, clause, phrase
or word in any other circumstances shall not be affected thereby.
In relation to the initial sale or offering for sale of any
condominium unit, the seller must make full disclosure of, and
provide copies to the prospective buyer of, the following
information relative to the condominium project:
(a) the Declaration;
(b) the Bylaws of the association;
(c) a projected operating budget for the condominium unit to
be sold to the prospective buyer, including full details concerning
the estimated monthly payments for the condominium unit, estimated
monthly charges for maintenance or management of the condominium
property, and monthly charges for the use of recreational
facilities; and
(d) a floor plan of the apartment to be purchased by the
prospective buyer and the street address of the unit, if any, and if
the unit has no unique street address, the street address of the
project.
(e) in addition, any developer of a conversion condominium
shall include the following information:
(1) A specific statement of the amount of any initial or
special condominium fee due from the purchaser on or before
settlement of the purchase contract and the basis of such fee;
(2) Information, if available, on the actual expenditures
made on all repairs, maintenance, operation, or upkeep of the
subject building or buildings within the last 2 years, set forth
tabularly with the proposed budget of the condominium and
cumulatively, broken down on a per unit basis in proportion to the
relative voting strengths allocated to the units by the bylaws. If
such building or buildings have not been occupied for a period of 3
years then the information shall be set forth for the last 2 year
period such building or buildings have been occupied;
(3) A description of any provisions made in the budget for
reserves for capital expenditures and an explanation of the basis
for such reserves, or if no provision is made for such reserves, a
statement to that effect;
(4) For developments of more than 6 units for which the
notice of intent to convert is issued after the effective date of
this amendatory Act of 1979, an engineer’s report furnished by the
developer as to the present condition of all structural components
and major utility installations in the condominium, which statement
shall include the approximate dates of construction, installation,
major repairs and the expected useful life of such items, together
with the estimated cost (in current dollars) of replacing such
items; and
(5) Any release, warranty, certificate of insurance, or
surety required by Section 9.1.
All of the information required by this Section which is available
at the time shall be furnished to the prospective buyer before
execution of the contract for sale. Thereafter, no changes or
amendments may be made in any of the items furnished to the
prospective buyer which would materially affect the rights of the
buyer or the value of the unit without obtaining the approval of at
least 75% of the buyers then owning interest in the condominium. If
all of the information is not available at the time of execution of
the contract for sale, then the contract shall be voidable at option
of the buyer at any time up until 5 days after the last item of
required information is furnished to the prospective buyer, or until
the closing of the sale, whichever is earlier. Failure on the part
of the seller to make full disclosure as required by this Section
shall entitle the buyer to rescind the contract for sale at any time
before the closing of the contract and to receive a refund of all
deposit moneys paid with interest thereon at the rate then in effect
for interest on judgments.
A sale is not an initial sale for the purposes of this Section if
there is not a bona fide transfer of the ownership and possession of
the condominium unit for the purpose of occupancy of such unit as
the result of the sale or if the sale was entered into for the
purpose of avoiding the requirements of this Section. The buyer in
the first bona fide sale of any condominium unit has the rights
granted to buyers under this Section. If the buyer in any sale of a
condominium asserts that such sale is the first bona fide sale of
that unit, the seller has the burden of proving that his interest
was acquired through a bona fide sale.
(a) In the event of any resale of a condominium unit by a
unit owner other than the developer such owner shall obtain from the
Board of Managers and shall make available for inspection to the
prospective purchaser, upon demand, the following:
(1) A copy of the Declaration, by-laws, other condominium
instruments and any rules and regulations.
(2) A statement of any liens, including a statement of the
account of the unit setting forth the amounts of unpaid assessments
and other charges due and owing as authorized and limited by the
provisions of Section 9 of this Act or the condominium instruments.
(3) A statement of any capital expenditures anticipated by
the unit owner’s association within the current or succeeding two
fiscal years.
(4) A statement of the status and amount of any reserve for
replacement fund and any portion of such fund earmarked for any
specified project by the Board of Managers.
(5) A copy of the statement of financial condition of the
unit owner’s association for the last fiscal year for which such
statement is available.
(6) A statement of the status of any pending suits or
judgments in which the unit owner’s association is a party.
(7) A statement setting forth what insurance coverage is
provided for all unit owners by the unit owner’s association.
(8) A statement that any improvements or alterations made to
the unit, or the limited common elements assigned thereto, by the
prior unit owner are in good faith believed to be in compliance with
the condominium instruments.
(9) The identity and mailing address of the principal officer
of the unit owner’s association or of the other officer or agent as
is specifically designated to receive notices.
(b) The principal officer of the unit owner’s association or
such other officer as is specifically designated shall furnish the
above information when requested to do so in writing and within 30
days of the request.
(c) Within 15 days of the recording of a mortgage or trust
deed against a unit ownership given by the owner of that unit to
secure a debt, the owner shall inform the Board of Managers of the
unit owner’s association of the identity of the lender together with
a mailing address at which the lender can receive notices from the
association. If a unit owner fails or refuses to inform the Board as
required under subsection (c) then that unit owner shall be liable
to the association for all costs, expenses and reasonable attorneys
fees and such other damages, if any, incurred by the association as
a result of such failure or refusal.
A reasonable fee covering the direct out-of-pocket cost of providing
such information and copying may be charged by the association or
its Board of Managers to the unit seller for providing such
information.
If any portion of the common elements encroaches upon any unit, or
if any unit encroaches upon any portion of the common elements or
any other unit as a result of the construction, repair,
reconstruction, settlement or shifting of any building, a valid
mutual easement shall exist in favor of the owners of the common
elements and the respective unit owners involved to the extent of
the encroachment. A valid easement shall not exist in favor of any
owner who creates an encroachment by his intentional, willful or
negligent conduct or that of his agent.
Any deposit, payment or advance in the payment of the purchase price
for the initial sale of a unit, received by the developer or his
agent other than a payment made for extra work ordered in writing by
the purchaser of a unit, shall be held in an escrow account until
title is conveyed to the purchaser. The escrow funds shall be
segregated in a separate account designated for this purpose. The
developer shall deposit all the payments in an interest bearing
account at a federally insured bank or savings and loan institution,
which account shall be maintained within applicable federal
insurance limits, and all the interest is to be credited to the
purchaser on the purchase price of the unit. Such interest shall
accrue from the time of the deposit, payment or advance in the
payment of the purchase price of the unit. There shall be no
interest however, if the transfer of title takes place 45 days from
the time the contract to purchase is entered. In the event of a
refund or default, the interest earned on such deposit, payment or
advance shall follow the disposition of the deposit, payment or
advance. Escrow funds shall not be subject to attachment by any
creditor of a purchaser or of the developer or by the holder of a
lien against any portion of the property.
The provisions of this Section shall not apply to any payment
received on account for the purchase of a completed condominium unit
under articles of agreement for deed, installment agreement for
deed, or lease with option to purchase, if the agreement provides
for conveyance of title more than one year after the date of
execution of the agreement.
The developer may reserve the right to add additional property to
that which has been submitted to the provisions of this Act, and in
the event of any addition, to reallocate percentage interests in the
common elements in accordance with the provisions of this Act and
the condominium instruments by: recording an amended plat in
accordance with the provisions of Section 5 of this Act, together
with an amendment to the declaration in accordance with Section 6 of
this Act. Notwithstanding any other provisions of this Act requiring
approval of unit owners, no approval shall be required if the
developer complies with the requirements of this Section.
If the developer wishes to reserve the right to add additional
property, the declaration shall contain:
(a) an explicit reservation of an option to add additional
property to the condominium;
(b) a statement of the method by which the reallocation of
percentage interests, adjustments to voting rights, and rights, and
changes in liability for common expenses shall be determined if
additional units are added;
(c) a legal description of all land which may be added to the
property, herein referred to as “additional land” whether the units
are occupied or not;
(d) a time limit of 10 years from the date of the recording
of the declaration, after which the option to add additional
property shall no longer be in effect and a statement of the
circumstances, if any, under which it may terminate. In all cases in
which the option to add additional property is exercised, the
contracts for construction and delivery of such additional property
shall contain a date for the completion and delivery of the
additional property to be constructed.
(e) a statement as to whether portions of the additional land
may be added to the property at different times, and as to whether
there are any limitations on the order thereof, or any limitations
fixing the boundaries of these portions, or whether any particular
portion of it must be added;
(f) a statement concerning limitations, if any, on the
locations of improvements which may be made on the additional land
added;
(g) a statement of the maximum number of units, if any, which
may be created on the additional land. If portions of the additional
land may be added to the property and the boundaries of those
portions are fixed in accordance with paragraph (e) of this Section,
the declaration shall also state the maximum number of units that
may be created on each such portion to be added to the property. If
portions of the additional land may be added to the property and the
boundaries of those portions are not fixed in accordance with
paragraph (e) of this Section, then the declaration shall also state
the largest number of units which may be created on each acre of any
portion added to the property;
(h) a statement of the extent to which structures,
improvements, buildings and units will be compatible with the
configuration of the property in relation to density, use,
construction and architectural style; and
(i) any plat or site plans or other graphic material which
the developer may wish to set forth in order to supplement or
explain the information provided.
Subject to any restrictions and limitations specified by the
condominium instruments, there shall be an appurtenant easement over
and on the common elements for the purpose of making improvements on
the additional land, and for the purpose of doing what is reasonably
necessary and proper in conjunction therewith.
No provision of this Act shall be binding upon or obligate the
developer to exercise his option to make additions or bind the land
described in the condominium instruments. No provision of the
condominium instruments shall be construed to be binding upon or
obligate the developer to exercise his option to make additions, and
the land legally described therein shall not be bound thereby,
except in the case of any covenant, restriction, limitation, or
other representation or commitment in the condominium instruments,
or in any other agreement made with, or by, the developer, requiring
the developer to add all or any portion of the additional land, or
imposing any obligation with regard to anything that is or is not to
be done thereon or with regard thereto, or imposing any obligations
with regard to anything that is or is not to be done on or with
regard to the property or any portion thereof, this Section shall
not be construed to nullify, limit, or otherwise affect any such
obligation.
Any amendment to the declaration adding additional land may contain
such complementary additions and modifications of the provisions of
the declaration affecting the additional land which are necessary to
reflect the differences in character, if any, of the additional land
and the improvements thereto. In no event, however, shall any such
amendment to a declaration revoke, modify or add to the covenants
established by the declaration for the property already subject to
the declaration.
The use of limited common elements may be transferred between unit
owners at their expense, provided that the transfer may be made only
in accordance with the condominium instruments and the provision of
this Act. Each transfer shall be made by an amendment to the
declaration executed by all unit owners who are parties to the
transfer and consented to by all other unit owners who have any
right to use the limited common elements affected. The amendment
shall contain a certificate showing that a copy of the amendment has
been delivered to the board of managers. The amendment shall contain
a statement from the parties involved in the transfer which sets
forth any changes in the parties’ proportionate shares. If the
parties cannot agree upon a reapportionment of their respective
shares, the board of managers shall decide such reapportionment. No
transfer shall become effective until the amendment has been
recorded. Rights and obligations in respect to any limited common
element shall not be affected, nor shall any transfer of it be
effective, unless a transaction is in compliance with the
requirements of this Section.
Each limited common element may be identified on the plat by the
distinguishing number or other symbol of the unit or units to which
it is assigned, and its location in respect to the unit or units may
also be shown or may be otherwise located in the declaration.
(a) If there is any unit owner
other than the developer, the condominium instruments shall be
amended only as follows:
(i) upon the affirmative vote of 2/3 of those voting or upon
the majority specified by the condominium instruments, provided that
in no event shall the condominium instruments require more than a
three-quarters vote of unit owners; and
(ii) with the approval of any mortgagees required under the
provisions of the condominium instruments.
Except in cases where this Act
provides different methods of amendment or with respect to property
whose declaration is recorded on or after July 1, 1984, no
condominium instrument shall require more than a three-quarters vote
of unit owners to amend the bylaws. Except to the extent authorized
by other provisions of this Act, no amendment to the condominium
instrument shall change the boundaries of any unit or the undivided
interest in the common elements, the number of votes in the unit
owners’ association, or the liability for common expenses
appertaining to a unit.
(b)
(1) If there is an omission or error in the declaration,
bylaws or other condominium instrument, the association may correct
the error or omission by an amendment to the declaration, bylaws, or
other condominium instrument in such respects as may be required to
conform to this Act, and any other applicable statute or to the
declaration by vote of two-thirds of the members of the Board of
Managers or by a majority vote of the unit owners at a meeting
called for this purpose unless the Act or the condominium
instruments specifically provide for greater percentages or
different procedures.
(2) If through a scrivener’s error, a unit has not been
designated as owning an appropriate undivided share of the common
elements or does not bear an appropriate share of the common
expenses or that all the common expenses or all of the common
elements in the condominium have not been distributed in the
declaration, so that the sum total of the shares of common elements
which have been distributed or the sum total of the shares of the
common expenses fail to equal 100%, or if it appears that more than
100% of the common elements or common expenses have been
distributed, the error may be corrected by operation of law by
filing an amendment to the declaration approved by vote of
two-thirds of the members of the Board of Managers or a majority
vote of the unit owners at a meeting called for this purpose which
proportionately adjusts all percentage interests so that the total
is equal to 100% unless the condominium instruments specifically
provide for a different procedure or different percentage vote by
the owners of the units and the owners of mortgages thereon affected
by modification being made in the undivided interest in the common
elements, the number of votes in the unit owners association or the
liability for common expenses appertaining to the unit.
(3) If an omission or error or a scrivener’s error in the
declaration, bylaws or other condominium instrument is corrected by
vote of two-thirds of the members of the Board of Managers pursuant
to the authority established in subsections (b)(1) or (b)(2) of
Section 27 of this Act, the Board upon written petition by unit
owners with 20 percent of the votes of the association filed within
30 days of the Board action shall call a meeting of the unit owners
within 30 days of the filing of the petition to consider the Board
action. Unless a majority of the votes of the unit owners of the
association are cast at the meeting to reject the action, it is
ratified whether or not a quorum is present.
(4) The procedures for amendments set forth in this
subsection (b) cannot be used if such an amendment would materially
or adversely affect property rights of the unit owners unless the
affected unit owners consent in writing. This Section does not
restrict the powers of the association to otherwise amend the
declaration, bylaws, or other condominium instruments, but
authorizes a simple process of amendment requiring a lesser vote for
the purpose of correcting defects, errors, or omissions when the
property rights of the unit owners are not materially or adversely
affected.
(5) If there is an omission or error in the declaration,
bylaws, or other condominium instruments, which may not be corrected
by an amendment procedure set forth in paragraphs (1) and (2) of
subsection (b) of Section 27 in the declaration then the Circuit
Court in the County in which the condominium is located shall have
jurisdiction to hear a petition of one or more of the unit owners
thereon or of the association, to correct the error or omission, and
the action may be a class action. The court may require that one or
more methods of correcting the error or omission be submitted to the
unit owners to determine the most acceptable correction. All unit
owners in the association must be joined as parties to the action.
Service of process on owners may be by publication, but the
plaintiff shall furnish all unit owners not personally served with
process with copies of the petition and final judgment of the court
by certified mail return receipt requested, at their last known
address.
(6) Nothing contained in this Section shall be construed to
invalidate any provision of a condominium instrument authorizing the
developer to amend a condominium instrument prior to the latest date
on which the initial membership meeting of the unit owners must be
held, whether or not it has actually been held, to bring the
instrument into compliance with the legal requirements of the
Federal National Mortgage Association, the Federal Home Loan
Mortgage Corporation, the Federal Housing Administration, the United
States Veterans Administration or their respective successors and
assigns.
A unit owner owning 2 or more units shall have the right, subject to
such reasonable limitations as the condominium instruments may
impose, to remove or otherwise alter any intervening partition, so
long as the action does not weaken, impair or endanger any common
element or unit. The unit owner shall notify the board of managers
of the nature of the removal or alteration at least 10 days prior to
commencing work.
Sec. 30.
CONVERSION CONDOMINIUMS — NOTICE — RECORDING.
(1) No real estate may be submitted to the provisions of the
Act as a conversion condominium unless (i) a notice of intent to
submit the real estate to this Act (notice of intent) has been given
to all persons who were tenants of the building located on the real
estate on the date the notice is given. Such notice shall be given
at least 30 days, and not more than 1 year prior to the recording of
the declaration which submits the real estate to this Act; and (ii)
the developer executes and acknowledges a certificate which shall be
attached to and made a part of the declaration and which provides
that the developer, prior to the execution by him or his agent of
any agreement for the sale of a unit, has given a copy of the notice
of intent to all persons who were tenants of the building located on
the real estate on the date the notice of intent was given.
(2) If the owner fails to provide a tenant with notice of the
intent to convert as defined in this Section, the tenant permanently
vacates the premises as a direct result of non-renewal of his or her
lease by the owner, and the tenant’s unit is converted to a
condominium by the filing of a declaration submitting a property to
this Act without having provided the required notice, then the owner
is liable to the tenant for the following:
(A) the tenant’s actual moving expenses incurred when moving
from the subject property, not to exceed $1,500;
(B) three month’s rent at the subject property; and
(C) reasonable attorney’s fees and court costs.
(b) Any developer of a conversion condominium must, upon
issuing the notice of intent, publish and deliver along with such
notice of intent, a schedule of selling prices for all units subject
to the condominium instruments and offer to sell such unit to the
current tenants, except for units to be vacated for rehabilitation
subsequent to such notice of intent. Such offer shall not expire
earlier than 30 days after receipt of the offer by the current
tenant, unless the tenant notifies the developer in writing of his
election not to purchase the condominium unit.
(c) Any tenant who was a tenant as of the date of the notice
of intent and whose tenancy expires (other than for cause) prior to
the expiration of 120 days from the date on which a copy of the
notice of intent was given to the tenant shall have the right to
extend his tenancy on the same terms and conditions and for the same
rental until the expiration of such 120 day period by the giving of
written notice thereof to the developer within 30 days of the date
upon which a copy of the notice of intent was given to the tenant by
the developer.
(d) Each lessee in a conversion condominium shall be informed
by the developer at the time the notice of intent is given whether
his tenancy will be renewed or terminated upon its expiration. If
the tenancy is to be renewed, the tenant shall be informed of all
charges, rental or otherwise, in connection with the new tenancy and
the length of the term of occupancy proposed in conjunction
therewith.
(e) For a period of 120 days following his receipt of the
notice of intent, any tenant who was a tenant on the date the notice
of intent was given shall be given the right to purchase his unit on
substantially the same terms and conditions as set forth in a duly
executed contract to purchase the unit, which contract shall
conspicuously disclose the existence of, and shall be subject to,
the right of first refusal. The tenant may exercise the right of
first refusal by giving notice thereof to the developer prior to the
expiration of 30 days from the giving of notice by the developer to
the tenant of the execution of the contract to purchase the unit.
The tenant may exercise such right of first refusal within 30 days
from the giving of notice by the developer of the execution of a
contract to purchase the unit, notwithstanding the expiration of the
120 day period following the tenant’s receipt of the notice of
intent, if such contract was executed prior to the expiration of the
120 day period. The recording of the deed conveying the unit to the
purchaser which contains a statement to the effect that the tenant
of the unit either waived or failed to exercise the right of first
refusal or option or had no right of first refusal or option with
respect to the unit shall extinguish any legal or equitable right or
interest to the possession or acquisition of the unit which the
tenant may have or claim with respect to the unit arising out of the
right of first refusal or option provided for in this Section. The
foregoing provision shall not affect any claim which the tenant may
have against the landlord for damages arising out of the right of
first refusal provided for in this Section.
(f) During the 30 day period after the giving of notice of an
executed contract in which the tenant may exercise the right of
first refusal, the developer shall grant to such tenant access to
any portion of the building to inspect any of its features or
systems and access to any reports, warranties, or other documents in
the possession of the developer which reasonably pertain to the
condition of the building. Such access shall be subject to
reasonable limitations, including as to hours. The refusal of the
developer to grant such access is a business offense punishable by a
fine of $500. Each refusal to an individual lessee who is a
potential purchaser is a separate violation.
(g) Any notice provided for in this Section shall be deemed
given when a written notice is delivered in person or mailed,
certified or registered mail, return receipt requested to the party
who is being given the notice.
(h) Prior to their initial sale, units offered for sale in a
conversion condominium and occupied by a tenant at the time of the
offer shall be shown to prospective purchasers only a reasonable
number of times and at appropriate hours. Units may only be shown to
prospective purchasers during the last 90 days of any expiring
tenancy.
(i) Any provision in any lease or other rental agreement, or
any termination of occupancy on account of condominium conversion,
not authorized herein, or contrary to or waiving the foregoing
provisions, shall be deemed to be void as against public policy.
(j) A tenant is entitled to injunctive relief to enforce the
provisions of subsections (a) and (c) of this Section.
(k) A non-profit housing organization, suing on behalf of an
aggrieved tenant under this Section, may also recover compensation
for reasonable attorney’s fees and court costs necessary for filing
such action.
(l) Nothing in this Section shall affect any provision in any
lease or rental agreement in effect before this Act becomes law.
(m) Nothing in this amendatory Act of 1978 shall be construed
to imply that there was previously a requirement to record the
notice provided for in this Section.
In the case of the conversion of an apartment building into
condominium units, a municipality shall have the right to inspect
the apartment building prior to the conversion to condominium units
and may require that each new proposed condominium unit comply with
the current life safety, building and zoning codes of the
municipality.
Unless the condominium instruments expressly prohibit the
subdivision or combination of any units, and subject to additional
limitations provided by the condominium instruments, the owner or
owners may, at their own expense, subdivide or combine and locate or
relocate common elements affected or required thereby, in accordance
with the provisions of the condominium instruments and the
requirements of this Act. The owner or owners shall make written
application to the board of managers, requesting an amendment to the
condominium instruments, setting forth in the application a proposed
reallocation to the new units of the percentage interest in the
common elements, and setting forth whether the limited common
elements, if any, previously assigned to the unit to be subdivided
should be assigned to each new unit or to fewer than all of the new
units created and requesting, if desired in the event of a
combination of any units, that the new unit be granted the exclusive
right to use as a limited common element, a portion of the common
elements within the building adjacent to the new unit. If the
transaction is approved by a majority of the board of managers, it
shall be effective upon (1) recording of an amendment to condominium
instruments in accordance with the provisions of Sections 5 and 6 of
this Act, and (2) execution by the owners of the units involved. In
the event of a combination of any units, the amendment may grant the
owner of the combined unit the exclusive right to use, as a limited
common element, a portion of the common elements within the building
adjacent to the new unit. The request for the amendment shall be
granted and the amendment shall grant this exclusive right to use as
a limited common element if the following conditions are met:
(a) the common element for which the exclusive right to use
as a limited common element is sought is not necessary or practical
for use by the owners of any units other than the owner or owners of
the combined unit; and
(b) the owner or owners of the combined unit are responsible
for any and all costs associated with the renovation, modification,
or other adaptation performed as a result of the granting of the
exclusive right to use as a limited common element.
If the combined unit is divided, part of the original combined unit
is sold, and the grant of the exclusive right to use as a limited
common element is no longer necessary, practical, or appropriate for
the use and enjoyment of the owner or owners of the original
combined unit, the board may terminate the grant of the exclusive
right to use as a limited common element and require that the owner
or owners of the original combined unit restore the common area to
its condition prior to the grant of the exclusive right to use as a
limited common element. If the combined unit is sold without being
divided, the grant of the exclusive right to use as a limited common
element shall apply to the new owner or owners of the combined unit,
who shall assume the rights and responsibilities of the original
owner or owners.
Sec. 32.
ALTERNATE DISPUTE RESOLUTION; MEDIATION; ARBITRATION.
(a) The declaration or bylaws
of a condominium association may require mediation or arbitration of
disputes in which the matter in controversy has either no specific
monetary value or a value of $10,000 or less, other than the levying
and collection of assessments, or that arises out of violations of
the declaration, bylaws, or rules and regulations of the condominium
association. A dispute not required to be mediated or arbitrated by
an association pursuant to its powers under this Section, that is
submitted to mediation or arbitration by the agreement of the
disputants, is also subject to this Section.
(b) The Illinois Uniform Arbitration Act shall govern all
arbitrations proceeding under this Section.
(c) The association may require the disputants to bear the
costs of mediation or arbitration.
An up-to-date copy of
the Illinois Condominium Property Act will not provide complete
answers to all condominium law questions. Some provisions of the
Illinois Condominium Property Act do not take precedence over
contrary provisions in an association’s declaration or bylaws.
Moreover, certain provisions of the Illinois General Not For Profit
Corporation Act are applicable to Illinois condominium associations,
and much of the law governing collection of assessments is set forth
in the Illinois Code of Civil Procedure. The federal Bankruptcy Code
contains special provisions applicable to condominium and homeowners
associations, and the Fair Debt Collection Practices Act, Fair
Housing Act, and other federal laws are also applicable to
condominium associations, as are numerous city and county ordinances
and regulations. For these reasons, an experienced condominium law
professional should always be consulted when questions arise.
Copyright 2008,
Arnstein & Lehr LLP. All rights reserved.
