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| Public Act 097-0535
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| SB1972 Enrolled | LRB097 10092 AJO 50271 b |
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Condominium Property Act is amended by |
changing Section 18.5 as follows:
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(765 ILCS 605/18.5) (from Ch. 30, par. 318.5)
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Sec. 18.5. Master Associations.
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(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.
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(b) There shall be included in the declaration, other
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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).
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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.
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(c) Meetings and finances.
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(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.
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(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
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tabulation of the amounts collected pursuant to the budget |
or assessment,
and showing the net excess or deficit of |
income over expenditures plus
reserves.
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(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.
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(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:
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(A) to discuss litigation when an action against or |
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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,
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(B) to consider information regarding appointment, |
employment or
dismissal of an employee, or
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(C) to discuss violations of rules and regulations |
of the master
association or unpaid common expenses |
owed to the master association.
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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.
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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
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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 |
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the
proximity of these units where the notices of meetings |
shall be posted.
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(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
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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
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directors unless the seller expressly retains in writing
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any or all of those rights. In no event may the seller and
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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
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contract" shall have the same meaning as set forth in |
subsection (e) of
Section 1 of the Dwelling Unit |
Installment Contract Act.
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(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 |
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in connection therewith, subject to the
requirements of the |
Tenant Utility Payment Disclosure Act.
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(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
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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.
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(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.
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(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 |
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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:
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(i) Copies of the recorded declaration, other |
condominium instruments,
other duly recorded covenants |
and bylaws and any amendments, articles of
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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.
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(ii) Detailed and 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.
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(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.
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(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 |
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unit owners shall be maintained for
not less than one |
year.
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(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.
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(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.
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(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.
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(3) A reasonable fee may be charged by the master |
association or its
board for the cost of copying.
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(4) If the board of directors fails to provide records |
properly
requested under subdivision (d)(1) within the
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time period provided in subdivision (d)(2), the
unit owner |
may seek appropriate relief, including an award of
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attorney's fees and costs.
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(e) The board of directors shall have standing and capacity |
to act in
a representative capacity in relation to matters |
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involving the common areas
of the master association or more |
than one unit, on behalf of the unit
owners as their interests |
may appear.
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(f) Administration of property prior to election of the |
initial board
of directors.
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(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.
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(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 |
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owner shall upon receipt of the request be provided with
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the same
information, within 10 days of the request, with |
respect to
each
subsequent meeting to elect members of the |
board of directors.
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(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
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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.
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(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:
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(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 |
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an officer or agent of the developer, as being a |
complete
copy of the actual document recorded or filed.
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(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.
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(iii) Association funds, which shall have been at |
all times
segregated from any other moneys of the |
developer.
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(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.
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(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
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authority, all other documents filed with any other |
governmental authority,
all governmental certificates, |
correspondence involving enforcement of any
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association requirements, copies of any documents |
relating to disputes
involving unit owners, and |
originals of all documents relating to
everything |
listed in this subparagraph.
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(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
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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.
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(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
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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
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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
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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,
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lease, or other agreement shall also have the right of |
cancellation.
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(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.
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(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:
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(1) A copy of the declaration, other instruments and |
any rules and
regulations.
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(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.
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(3) A statement of any capital expenditures |
anticipated by the
association within the current or |
succeeding 2 fiscal years.
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(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.
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(5) A copy of the statement of financial condition of |
the association
for the last fiscal year for which such a |
statement is available.
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(6) A statement of the status of any pending suits or |
judgments in which
the association is a party.
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(7) A statement setting forth what insurance coverage |
is provided for
all unit owners by the association.
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(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.
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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, |
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within
30 days of receiving the request.
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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.
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(g-1) The purchaser of a unit of a common interest |
community at a judicial foreclosure sale, other than a |
mortgagee, who takes possession of a unit of a common interest |
community 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 that 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 the court costs incurred by the association in |
an action to enforce the collection and that remain unpaid by |
the owner during whose possession the assessments accrued. If |
the outstanding assessments and the court costs incurred by the |
association in an action to enforce the collection are paid at |
any time during any action to enforce the collection of |
assessments, the purchaser shall have no obligation to pay any |
assessments that accrued before he or she acquired title. The |
notice of sale of a unit of a common interest community 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 court costs required |
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by this subsection (g-1).
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(h) Errors and omissions.
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(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
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provides for greater percentages or different procedures.
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(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 |
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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
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association or the liability for common expenses |
appertaining to the unit.
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(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
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directors of the master association within 30 days of the |
filing of the
petition or receipt of the condominium and |
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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.
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(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.
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(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 |
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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.
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(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
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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.
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(i) The provisions of subsections (c) through (h) are |
applicable
to all declarations, other condominium instruments, |
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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
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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.
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(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.
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(Source: P.A. 96-1045, eff. 7-14-10.)
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