HB2641 Engrossed LRB099 07614 HEP 27745 b
1		AN ACT concerning civil law.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Condominium Property Act is amended by
5		changing Section 18 as follows:
6		(765 ILCS 605/18) (from Ch. 30, par. 318)
7		Sec. 18. Contents of bylaws. The bylaws shall provide for
8		at least the following:
9		(a)(1) The election from among the unit owners of a board
10		of managers, the number of persons constituting such board, and
11		that the terms of at least one-third of the members of the
12		board shall expire annually and that all members of the board
13		shall be elected at large. If there are multiple owners of a
14		single unit, only one of the multiple owners shall be eligible
15		to serve as a member of the board at any one time.
16		(2) the powers and duties of the board;
17		(3) the compensation, if any, of the members of the board;
18		(4) the method of removal from office of members of the
19		board;
20		(5) that the board may engage the services of a manager or
21		managing agent;
22		(6) that each unit owner shall receive, at least 30 days
23		prior to the adoption thereof by the board of managers, a copy

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1		of the proposed annual budget together with an indication of
2		which portions are intended for reserves, capital expenditures
3		or repairs or payment of real estate taxes;
4		(7) that the board of managers shall annually supply to all
5		unit owners an itemized accounting of the common expenses for
6		the preceding year actually incurred or paid, together with an
7		indication of which portions were for reserves, capital
8		expenditures or repairs or payment of real estate taxes and
9		with a tabulation of the amounts collected pursuant to the
10		budget or assessment, and showing the net excess or deficit of
11		income over expenditures plus reserves;
12		(8)(i) that each unit owner shall receive notice, in the
13		same manner as is provided in this Act for membership meetings,
14		of any meeting of the board of managers concerning the adoption
15		of the proposed annual budget and regular assessments pursuant
16		thereto or to adopt a separate (special) assessment, (ii) that
17		except as provided in subsection (iv) below, if an adopted
18		budget or any separate assessment adopted by the board would
19		result in the sum of all regular and separate assessments
20		payable in the current fiscal year exceeding 115% of the sum of
21		all regular and separate assessments payable during the
22		preceding fiscal year, the board of managers, upon written
23		petition by unit owners with 20 percent of the votes of the
24		association delivered to the board within 14 days of the board
25		action, shall call a meeting of the unit owners within 30 days
26		of the date of delivery of the petition to consider the budget

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1		or separate assessment; unless a majority of the total votes of
2		the unit owners are cast at the meeting to reject the budget or
3		separate assessment, it is ratified, (iii) that any common
4		expense not set forth in the budget or any increase in
5		assessments over the amount adopted in the budget shall be
6		separately assessed against all unit owners, (iv) that separate
7		assessments for expenditures relating to emergencies or
8		mandated by law may be adopted by the board of managers without
9		being subject to unit owner approval or the provisions of item
10		(ii) above or item (v) below. As used herein, "emergency" means
11		an immediate danger to the structural integrity of the common
12		elements or to the life, health, safety or property of the unit
13		owners, (v) that assessments for additions and alterations to
14		the common elements or to association-owned property not
15		included in the adopted annual budget, shall be separately
16		assessed and are subject to approval of two-thirds of the total
17		votes of all unit owners, (vi) that the board of managers may
18		adopt separate assessments payable over more than one fiscal
19		year. With respect to multi-year assessments not governed by
20		items (iv) and (v), the entire amount of the multi-year
21		assessment shall be deemed considered and authorized in the
22		first fiscal year in which the assessment is approved;
23		(9) that meetings of the board of managers shall be open to
24		any unit owner, except for the portion of any meeting held (i)
25		to discuss litigation when an action against or on behalf of
26		the particular association has been filed and is pending in a

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1		court or administrative tribunal, or when the board of managers
2		finds that such an action is probable or imminent, (ii) to
3		consider information regarding appointment, employment or
4		dismissal of an employee, or (iii) to discuss violations of
5		rules and regulations of the association or a unit owner's
6		unpaid share of common expenses; that any vote on these matters
7		shall be taken at a meeting or portion thereof open to any unit
8		owner; that any unit owner may record the proceedings at
9		meetings or portions thereof required to be open by this Act by
10		tape, film or other means; that the board may prescribe
11		reasonable rules and regulations to govern the right to make
12		such recordings, that notice of such meetings shall be mailed
13		or delivered at least 48 hours prior thereto, unless a written
14		waiver of such notice is signed by the person or persons
15		entitled to such notice pursuant to the declaration, bylaws,
16		other condominium instrument, or provision of law other than
17		this subsection before the meeting is convened, and that copies
18		of notices of meetings of the board of managers shall be posted
19		in entranceways, elevators, or other conspicuous places in the
20		condominium at least 48 hours prior to the meeting of the board
21		of managers except where there is no common entranceway for 7
22		or more units, the board of managers may designate one or more
23		locations in the proximity of these units where the notices of
24		meetings shall be posted;
25		(10) that the board shall meet at least 4 times annually;
26		(11) that no member of the board or officer shall be

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1		elected for a term of more than 2 years, but that officers and
2		board members may succeed themselves;
3		(12) the designation of an officer to mail and receive all
4		notices and execute amendments to condominium instruments as
5		provided for in this Act and in the condominium instruments;
6		(13) the method of filling vacancies on the board which
7		shall include authority for the remaining members of the board
8		to fill the vacancy by two-thirds vote until the next annual
9		meeting of unit owners or for a period terminating no later
10		than 30 days following the filing of a petition signed by unit
11		owners holding 20% of the votes of the association requesting a
12		meeting of the unit owners to fill the vacancy for the balance
13		of the term, and that a meeting of the unit owners shall be
14		called for purposes of filling a vacancy on the board no later
15		than 30 days following the filing of a petition signed by unit
16		owners holding 20% of the votes of the association requesting
17		such a meeting, and the method of filling vacancies among the
18		officers that shall include the authority for the members of
19		the board to fill the vacancy for the unexpired portion of the
20		term;
21		(14) what percentage of the board of managers, if other
22		than a majority, shall constitute a quorum;
23		(15) provisions concerning notice of board meetings to
24		members of the board;
25		(16) the board of managers may not enter into a contract
26		with a current board member or with a corporation or

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1		partnership in which a board member or a member of the board
2		member's immediate family has 25% or more interest, unless
3		notice of intent to enter the contract is given to unit owners
4		within 20 days after a decision is made to enter into the
5		contract and the unit owners are afforded an opportunity by
6		filing a petition, signed by 20% of the unit owners, for an
7		election to approve or disapprove the contract; such petition
8		shall be filed within 20 days after such notice and such
9		election shall be held within 30 days after filing the
10		petition; for purposes of this subsection, a board member's
11		immediate family means the board member's spouse, parents, and
12		children;
13		(17) that the board of managers may disseminate to unit
14		owners biographical and background information about
15		candidates for election to the board if (i) reasonable efforts
16		to identify all candidates are made and all candidates are
17		given an opportunity to include biographical and background
18		information in the information to be disseminated; and (ii) the
19		board does not express a preference in favor of any candidate;
20		(18) any proxy distributed for board elections by the board
21		of managers gives unit owners the opportunity to designate any
22		person as the proxy holder, and gives the unit owner the
23		opportunity to express a preference for any of the known
24		candidates for the board or to write in a name;
25		(19) that special meetings of the board of managers can be
26		called by the president or 25% of the members of the board; and

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1		(20) that the board of managers may establish and maintain
2		a system of master metering of public utility services and
3		collect payments in connection therewith, subject to the
4		requirements of the Tenant Utility Payment Disclosure Act; and .
5		(21) that the board may ratify and confirm actions of the
6		members of the board taken in response to an emergency, as that
7		term is defined in subdivision (a)(8)(iv) of this Section, if
8		it had the right to authorize the actions in advance; that the
9		board may not ratify and confirm any actions done in violation
10		of this Act, other laws, or the condominium instruments, except
11		that the board may subsequently ratify and confirm emergency
12		actions authorized by one or more board members, regardless of
13		whether a quorum of the board was present to vote to authorize
14		the actions or proper prior notice of board action otherwise
15		required by this Act, other laws, or the condominium
16		instruments was given; that the board shall give notice to the
17		unit owners of: (i) the occurrence of the emergency event
18		within 2 business days after the emergency event, and (ii) the
19		general description of the actions taken to address the event
20		within 7 days after the emergency event; that a board vote to
21		ratify and confirm the emergency actions must be held within 30
22		days after the emergency event, at either a regular or special
23		board meeting; that the notice of the meeting shall
24		specifically state that a vote of the board will be held at the
25		meeting to ratify and confirm the emergency actions taken.
26		(b)(1) What percentage of the unit owners, if other than

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1		20%, shall constitute a quorum provided that, for condominiums
2		with 20 or more units, the percentage of unit owners
3		constituting a quorum shall be 20% unless the unit owners
4		holding a majority of the percentage interest in the
5		association provide for a higher percentage, provided that in
6		voting on amendments to the association's bylaws, a unit owner
7		who is in arrears on the unit owner's regular or separate
8		assessments for 60 days or more, shall not be counted for
9		purposes of determining if a quorum is present, but that unit
10		owner retains the right to vote on amendments to the
11		association's bylaws;
12		(2) that the association shall have one class of
13		membership;
14		(3) that the members shall hold an annual meeting, one of
15		the purposes of which shall be to elect members of the board of
16		managers;
17		(4) the method of calling meetings of the unit owners;
18		(5) that special meetings of the members can be called by
19		the president, board of managers, or by 20% of unit owners;
20		(6) that written notice of any membership meeting shall be
21		mailed or delivered giving members no less than 10 and no more
22		than 30 days notice of the time, place and purpose of such
23		meeting except that notice may be sent, to the extent the
24		condominium instruments or rules adopted thereunder expressly
25		so provide, by electronic transmission consented to by the unit
26		owner to whom the notice is given, provided the director and

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1		officer or his agent certifies in writing to the delivery by
2		electronic transmission;
3		(7) that voting shall be on a percentage basis, and that
4		the percentage vote to which each unit is entitled is the
5		percentage interest of the undivided ownership of the common
6		elements appurtenant thereto, provided that the bylaws may
7		provide for approval by unit owners in connection with matters
8		where the requisite approval on a percentage basis is not
9		specified in this Act, on the basis of one vote per unit;
10		(8) that, where there is more than one owner of a unit, if
11		only one of the multiple owners is present at a meeting of the
12		association, he is entitled to cast all the votes allocated to
13		that unit, if more than one of the multiple owners are present,
14		the votes allocated to that unit may be cast only in accordance
15		with the agreement of a majority in interest of the multiple
16		owners, unless the declaration expressly provides otherwise,
17		that there is majority agreement if any one of the multiple
18		owners cast the votes allocated to that unit without protest
19		being made promptly to the person presiding over the meeting by
20		any of the other owners of the unit;
21		(9)(A) except as provided in subparagraph (B) of this
22		paragraph (9) in connection with board elections, that a unit
23		owner may vote by proxy executed in writing by the unit owner
24		or by his duly authorized attorney in fact; that the proxy must
25		bear the date of execution and, unless the condominium
26		instruments or the written proxy itself provide otherwise, is

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1		invalid after 11 months from the date of its execution; to the
2		extent the condominium instruments or rules adopted thereunder
3		expressly so provide, a vote or proxy may be submitted by
4		electronic transmission, provided that any such electronic
5		transmission shall either set forth or be submitted with
6		information from which it can be determined that the electronic
7		transmission was authorized by the unit owner or the unit
8		owner's proxy;
9		(B) that if a rule adopted at least 120 days before a board
10		election or the declaration or bylaws provide for balloting as
11		set forth in this subsection, unit owners may not vote by proxy
12		in board elections, but may vote only (i) by submitting an
13		association-issued ballot in person at the election meeting or
14		(ii) by submitting an association-issued ballot to the
15		association or its designated agent by mail or other means of
16		delivery specified in the declaration, bylaws, or rule; that
17		the ballots shall be mailed or otherwise distributed to unit
18		owners not less than 10 and not more than 30 days before the
19		election meeting, and the board shall give unit owners not less
20		than 21 days' prior written notice of the deadline for
21		inclusion of a candidate's name on the ballots; that the
22		deadline shall be no more than 7 days before the ballots are
23		mailed or otherwise distributed to unit owners; that every such
24		ballot must include the names of all candidates who have given
25		the board or its authorized agent timely written notice of
26		their candidacy and must give the person casting the ballot the

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1		opportunity to cast votes for candidates whose names do not
2		appear on the ballot; that a ballot received by the association
3		or its designated agent after the close of voting shall not be
4		counted; that a unit owner who submits a ballot by mail or
5		other means of delivery specified in the declaration, bylaws,
6		or rule may request and cast a ballot in person at the election
7		meeting, and thereby void any ballot previously submitted by
8		that unit owner;
9		(B-5) that if a rule adopted at least 120 days before a
10		board election or the declaration or bylaws provide for
11		balloting as set forth in this subparagraph, unit owners may
12		not vote by proxy in board elections, but may vote only (i) by
13		submitting an association-issued ballot in person at the
14		election meeting; or (ii) by any acceptable technological means
15		as defined in Section 2 of this Act; instructions regarding the
16		use of electronic means for voting shall be distributed to all
17		unit owners not less than 10 and not more than 30 days before
18		the election meeting, and the board shall give unit owners not
19		less than 21 days' prior written notice of the deadline for
20		inclusion of a candidate's name on the ballots; the deadline
21		shall be no more than 7 days before the instructions for voting
22		using electronic or acceptable technological means is
23		distributed to unit owners; every instruction notice must
24		include the names of all candidates who have given the board or
25		its authorized agent timely written notice of their candidacy
26		and must give the person voting through electronic or

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1		acceptable technological means the opportunity to cast votes
2		for candidates whose names do not appear on the ballot; a unit
3		owner who submits a vote using electronic or acceptable
4		technological means may request and cast a ballot in person at
5		the election meeting, thereby voiding any vote previously
6		submitted by that unit owner;
7		(C) that if a written petition by unit owners with at least
8		20% of the votes of the association is delivered to the board
9		within 14 days after the board's approval of a rule adopted
10		pursuant to subparagraph (B) or subparagraph (B-5) of this
11		paragraph (9), the board shall call a meeting of the unit
12		owners within 30 days after the date of delivery of the
13		petition; that unless a majority of the total votes of the unit
14		owners are cast at the meeting to reject the rule, the rule is
15		ratified;
16		(D) that votes cast by ballot under subparagraph (B) or
17		electronic or acceptable technological means under
18		subparagraph (B-5) of this paragraph (9) are valid for the
19		purpose of establishing a quorum;
20		(10) that the association may, upon adoption of the
21		appropriate rules by the board of managers, conduct elections
22		by secret ballot whereby the voting ballot is marked only with
23		the percentage interest for the unit and the vote itself,
24		provided that the board further adopt rules to verify the
25		status of the unit owner issuing a proxy or casting a ballot;
26		and further, that a candidate for election to the board of

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1		managers or such candidate's representative shall have the
2		right to be present at the counting of ballots at such
3		election;
4		(11) that in the event of a resale of a condominium unit
5		the purchaser of a unit from a seller other than the developer
6		pursuant to an installment contract for purchase shall during
7		such times as he or she resides in the unit be counted toward a
8		quorum for purposes of election of members of the board of
9		managers at any meeting of the unit owners called for purposes
10		of electing members of the board, shall have the right to vote
11		for the election of members of the board of managers and to be
12		elected to and serve on the board of managers unless the seller
13		expressly retains in writing any or all of such rights. In no
14		event may the seller and purchaser both be counted toward a
15		quorum, be permitted to vote for a particular office or be
16		elected and serve on the board. Satisfactory evidence of the
17		installment contact shall be made available to the association
18		or its agents. For purposes of this subsection, "installment
19		contact" shall have the same meaning as set forth in Section 1
20		(e) of "An Act relating to installment contracts to sell
21		dwelling structures", approved August 11, 1967, as amended;
22		(12) the method by which matters subject to the approval of
23		unit owners set forth in this Act, or in the condominium
24		instruments, will be submitted to the unit owners at special
25		membership meetings called for such purposes; and
26		(13) that matters subject to the affirmative vote of not

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1		less than 2/3 of the votes of unit owners at a meeting duly
2		called for that purpose, shall include, but not be limited to:
3		(i) merger or consolidation of the association;
4		(ii) sale, lease, exchange, or other disposition
5		(excluding the mortgage or pledge) of all, or substantially
6		all of the property and assets of the association; and
7		(iii) the purchase or sale of land or of units on
8		behalf of all unit owners.
9		(c) Election of a president from among the board of
10		managers, who shall preside over the meetings of the board of
11		managers and of the unit owners.
12		(d) Election of a secretary from among the board of
13		managers, who shall keep the minutes of all meetings of the
14		board of managers and of the unit owners and who shall, in
15		general, perform all the duties incident to the office of
16		secretary.
17		(e) Election of a treasurer from among the board of
18		managers, who shall keep the financial records and books of
19		account.
20		(f) Maintenance, repair and replacement of the common
21		elements and payments therefor, including the method of
22		approving payment vouchers.
23		(g) An association with 30 or more units shall obtain and
24		maintain fidelity insurance covering persons who control or
25		disburse funds of the association for the maximum amount of
26		coverage available to protect funds in the custody or control

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1		of the association plus the association reserve fund. All
2		management companies which are responsible for the funds held
3		or administered by the association shall maintain and furnish
4		to the association a fidelity bond for the maximum amount of
5		coverage available to protect funds in the custody of the
6		management company at any time. The association shall bear the
7		cost of the fidelity insurance and fidelity bond, unless
8		otherwise provided by contract between the association and a
9		management company. The association shall be the direct obligee
10		of any such fidelity bond. A management company holding reserve
11		funds of an association shall at all times maintain a separate
12		account for each association, provided, however, that for
13		investment purposes, the Board of Managers of an association
14		may authorize a management company to maintain the
15		association's reserve funds in a single interest bearing
16		account with similar funds of other associations. The
17		management company shall at all times maintain records
18		identifying all moneys of each association in such investment
19		account. The management company may hold all operating funds of
20		associations which it manages in a single operating account but
21		shall at all times maintain records identifying all moneys of
22		each association in such operating account. Such operating and
23		reserve funds held by the management company for the
24		association shall not be subject to attachment by any creditor
25		of the management company.
26		For the purpose of this subsection a management company

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1		shall be defined as a person, partnership, corporation, or
2		other legal entity entitled to transact business on behalf of
3		others, acting on behalf of or as an agent for a unit owner,
4		unit owners or association of unit owners for the purpose of
5		carrying out the duties, responsibilities, and other
6		obligations necessary for the day to day operation and
7		management of any property subject to this Act. For purposes of
8		this subsection, the term "fiduciary insurance coverage" shall
9		be defined as both a fidelity bond and directors and officers
10		liability coverage, the fidelity bond in the full amount of
11		association funds and association reserves that will be in the
12		custody of the association, and the directors and officers
13		liability coverage at a level as shall be determined to be
14		reasonable by the board of managers, if not otherwise
15		established by the declaration or by laws.
16		Until one year after the effective date of this amendatory
17		Act of 1985, if a condominium association has reserves plus
18		assessments in excess of $250,000 and cannot reasonably obtain
19		100% fidelity bond coverage for such amount, then it must
20		obtain a fidelity bond coverage of $250,000.
21		(h) Method of estimating the amount of the annual budget,
22		and the manner of assessing and collecting from the unit owners
23		their respective shares of such estimated expenses, and of any
24		other expenses lawfully agreed upon.
25		(i) That upon 10 days notice to the manager or board of
26		managers and payment of a reasonable fee, any unit owner shall

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1		be furnished a statement of his account setting forth the
2		amount of any unpaid assessments or other charges due and owing
3		from such owner.
4		(j) Designation and removal of personnel necessary for the
5		maintenance, repair and replacement of the common elements.
6		(k) Such restrictions on and requirements respecting the
7		use and maintenance of the units and the use of the common
8		elements, not set forth in the declaration, as are designed to
9		prevent unreasonable interference with the use of their
10		respective units and of the common elements by the several unit
11		owners.
12		(l) Method of adopting and of amending administrative rules
13		and regulations governing the operation and use of the common
14		elements.
15		(m) The percentage of votes required to modify or amend the
16		bylaws, but each one of the particulars set forth in this
17		section shall always be embodied in the bylaws.
18		(n)(i) The provisions of this Act, the declaration, bylaws,
19		other condominium instruments, and rules and regulations that
20		relate to the use of the individual unit or the common elements
21		shall be applicable to any person leasing a unit and shall be
22		deemed to be incorporated in any lease executed or renewed on
23		or after the effective date of this amendatory Act of 1984.
24		(ii) With regard to any lease entered into subsequent to the
25		effective date of this amendatory Act of 1989, the unit owner
26		leasing the unit shall deliver a copy of the signed lease to

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1		the board or if the lease is oral, a memorandum of the lease,
2		not later than the date of occupancy or 10 days after the lease
3		is signed, whichever occurs first. In addition to any other
4		remedies, by filing an action jointly against the tenant and
5		the unit owner, an association may seek to enjoin a tenant from
6		occupying a unit or seek to evict a tenant under the provisions
7		of Article IX of the Code of Civil Procedure for failure of the
8		lessor-owner to comply with the leasing requirements
9		prescribed by this Section or by the declaration, bylaws, and
10		rules and regulations. The board of managers may proceed
11		directly against a tenant, at law or in equity, or under the
12		provisions of Article IX of the Code of Civil Procedure, for
13		any other breach by tenant of any covenants, rules, regulations
14		or bylaws.
15		(o) The association shall have no authority to forbear the
16		payment of assessments by any unit owner.
17		(p) That when 30% or fewer of the units, by number, possess
18		over 50% in the aggregate of the votes in the association, any
19		percentage vote of members specified herein or in the
20		condominium instruments shall require the specified percentage
21		by number of units rather than by percentage of interest in the
22		common elements allocated to units that would otherwise be
23		applicable and garage units or storage units, or both, shall
24		have, in total, no more votes than their aggregate percentage
25		of ownership in the common elements; this shall mean that if
26		garage units or storage units, or both, are to be given a vote,

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1		or portion of a vote, that the association must add the total
2		number of votes cast of garage units, storage units, or both,
3		and divide the total by the number of garage units, storage
4		units, or both, and multiply by the aggregate percentage of
5		ownership of garage units and storage units to determine the
6		vote, or portion of a vote, that garage units or storage units,
7		or both, have. For purposes of this subsection (p), when making
8		a determination of whether 30% or fewer of the units, by
9		number, possess over 50% in the aggregate of the votes in the
10		association, a unit shall not include a garage unit or a
11		storage unit.
12		(q) That a unit owner may not assign, delegate, transfer,
13		surrender, or avoid the duties, responsibilities, and
14		liabilities of a unit owner under this Act, the condominium
15		instruments, or the rules and regulations of the Association;
16		and that such an attempted assignment, delegation, transfer,
17		surrender, or avoidance shall be deemed void.
18		The provisions of this Section are applicable to all
19		condominium instruments recorded under this Act. Any portion of
20		a condominium instrument which contains provisions contrary to
21		these provisions shall be void as against public policy and
22		ineffective. Any such instrument which fails to contain the
23		provisions required by this Section shall be deemed to
24		incorporate such provisions by operation of law.
25		(Source: P.A. 98-1042, eff. 1-1-15.)