Bill Text: IL SB3731 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Condominium Property Act. Provides that to sell a condominium property, there shall be the following percentage of affirmative votes of the unit owners: 75% for a property with 4 to 6 units (rather than 4 or more units); or 85% for a property with 7 or more units. Provides that an association that has agreed to sell the property shall inform the unit owners that the association may choose outside counsel to represent its interests during the sale process. Provides that it is a violation for a person, partnership, corporation, or other legal entity entitled to transact business on behalf of others, acting on behalf of one seeking to communicate with a unit owner for the purpose of purchasing his or her property once the unit owner has affirmatively requested that such a communication not be made. Provides that the bylaws shall provide that: matters subject to the affirmative vote of not less than 2/3 of the votes of unit owners shall require an independent audit of the votes; and unless a lesser percentage of ownership is provided for in the bylaws, no person, heir assign, family member, affiliate, partnership, corporation, or other legal entity entitled to transact business on behalf of others may own more than 10% of the units for a property containing 30 or more units, more than 15% of the units for a property containing 20 to 29 units, more than 20% for a property containing 5 to 19 units, and no more than a single unit for a property containing fewer than 5 units. Provides that it is a power and duty of the board of managers to: reject any arrangement that establishes an agreement for a buyer to purchase a property; and refrain from investigating an offer to purchase a property without first receiving authorization from the association through an affirmative vote of not less than 75% of unit owners based on the percentage of ownership. Provides that every officer and member of the board who violates, participates in, or permits any of the officers, agents, or assigns of the board to breach his or her fiduciary duty shall be held liable in his or her personal or individual capacity. Makes other changes. Makes a corresponding change in the Common Interest Community Association Act.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3731 Detail]

Download: Illinois-2019-SB3731-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3731 Introduced 2/14/2020, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED:
See Index
Amends the Condominium Property Act. Provides that to sell a condominium property, there shall be the following percentage of affirmative votes of the unit owners: 75% for a property with 4 to 6 units (rather than 4 or more units); or 85% for a property with 7 or more units. Provides that an association that has agreed to sell the property shall inform the unit owners that the association may choose outside counsel to represent its interests during the sale process. Provides that it is a violation for a person, partnership, corporation, or other legal entity entitled to transact business on behalf of others, acting on behalf of one seeking to communicate with a unit owner for the purpose of purchasing his or her property once the unit owner has affirmatively requested that such a communication not be made. Provides that the bylaws shall provide that: matters subject to the affirmative vote of not less than 2/3 of the votes of unit owners shall require an independent audit of the votes; and unless a lesser percentage of ownership is provided for in the bylaws, no person, heir assign, family member, affiliate, partnership, corporation, or other legal entity entitled to transact business on behalf of others may own more than 10% of the units for a property containing 30 or more units, more than 15% of the units for a property containing 20 to 29 units, more than 20% for a property containing 5 to 19 units, and no more than a single unit for a property containing fewer than 5 units. Provides that it is a power and duty of the board of managers to: reject any arrangement that establishes an agreement for a buyer to purchase a property; and refrain from investigating an offer to purchase a property without first receiving authorization from the association through an affirmative vote of not less than 75% of unit owners based on the percentage of ownership. Provides that every officer and member of the board who violates, participates in, or permits any of the officers, agents, or assigns of the board to breach his or her fiduciary duty shall be held liable in his or her personal or individual capacity. Makes other changes. Makes a corresponding change in the Common Interest Community Association Act.
LRB101 20341 LNS 69886 b
A BILL FOR
SB3731 LRB101 20341 LNS 69886 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Common Interest Community Association Act is
amended by changing Section 1-30 as follows:
(765 ILCS 160/1-30)
Sec. 1-30. Board duties and obligations; records.
(a) The board shall meet at least 4 times annually.
(b) A common interest community association may not enter
into a contract with a current board member, or with a
corporation, limited liability company, or partnership in
which a board member or a member of his or her immediate family
has 25% or more interest, unless notice of intent to enter into
the contract is given to members within 20 days after a
decision is made to enter into the contract and the members are
afforded an opportunity by filing a petition, signed by 20% of
the membership, 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, siblings, and children.
(c) The bylaws or operating agreement shall provide for the

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maintenance, repair, and replacement of the common areas and
payments therefor, including the method of approving payment
vouchers.
(d) (Blank).
(e) The association may engage the services of a manager or
management company.
(f) The association shall have one class of voting
membership unless the declaration, bylaws, or operating
agreement provide otherwise; however, this subsection (f)
shall not be construed to limit the operation of subsection (c)
of Section 1-20 of this Act.
(g) The board shall have the power, after notice and an
opportunity to be heard, to levy and collect reasonable fines
from members or unit owners for violations of the declaration,
bylaws, operating agreement, and rules and regulations of the
common interest community association.
(h) Other than attorney's fees and court or arbitration
costs, no fees pertaining to the collection of a member's or
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 a member's or unit 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 a member's or

SB3731 - 3 - LRB101 20341 LNS 69886 b
unit owner's respective share of the common expenses is
specifically stated in the declaration, bylaws, or operating
agreement of the association.
(i) Board records.
(1) The board shall maintain the following records of
the association and make them available for examination and
copying at convenient hours of weekdays by any member or
unit owner in a common interest community subject to the
authority of the board, their mortgagees, and their duly
authorized agents or attorneys:
(i) Copies of the recorded declaration, other
community instruments, other duly recorded covenants
and bylaws and any amendments, articles of
incorporation, articles of organization, annual
reports, and any rules and regulations adopted by the
board shall be available. Prior to the organization of
the board, the developer shall maintain and make
available the records set forth in this paragraph (i)
for examination and copying.
(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 board shall be maintained.

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(iii) The minutes of all meetings of the board
which shall be maintained for not less than 7 years.
(iv) With a written statement of a proper purpose,
ballots and proxies related thereto, if any, for any
election held for the board and for any other matters
voted on by the members, which shall be maintained for
not less than one year.
(v) With a written statement of a proper purpose,
such other records of the board 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, a
living trust, or other legal entity, the trustee,
officer, or manager of the entity may designate, in
writing, a person to cast votes on behalf of the member
or unit owner and a 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 or its agent, failure to
provide the requested record or to respond within 30 days
shall be deemed a denial by the board.
(3) A reasonable fee may be charged by the board for
the cost of retrieving and copying records properly
requested.

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(4) If the board fails to provide records properly
requested under paragraph (1) of this subsection (i) within
the time period provided in that paragraph (1), the member
may seek appropriate relief and shall be entitled to an
award of reasonable attorney's fees and costs if the member
prevails and the court finds that such failure is due to
the acts or omissions of the board of managers or the board
of directors.
(j) The board shall have standing and capacity to act in a
representative capacity in relation to matters involving the
common areas or more than one unit, on behalf of the members or
unit owners as their interests may appear.
(Source: P.A. 98-232, eff. 1-1-14; 98-241, eff. 8-9-13; 98-756,
eff. 7-16-14; 99-41, eff. 7-14-15.)
Section 10. The Condominium Property Act is amended by
changing Sections 9, 15, 18, 18.4, and 19 as follows:
(765 ILCS 605/9) (from Ch. 30, par. 309)
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

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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

SB3731 - 7 - LRB101 20341 LNS 69886 b
and equipment; (ii) the current and anticipated return on
investment of association funds; (iii) any independent
professional reserve study which the association shall 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.
Additionally, to assist the board of managers in
determining the appropriate amount of reserves, a reserve
study shall be conducted by a qualified independent
professional for all properties with 7 or more units. Every
3 years, an updated reserve study shall be prepared using a
visual site inspection by a qualified independent
professional.
(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

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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.
(5) At the end of an association's fiscal year and
after the association has approved any end-of-year fiscal
audit, if applicable, if the fiscal year ended with a
surplus of funds over actual expenses, including budgeted
reserve fund contributions, then, to the extent that there
are not any contrary provisions in the association's
declaration and bylaws, the board of managers has the
authority, in its discretion, to dispose of the surplus in
one or more of the following ways: (i) contribute the
surplus to the association's reserve fund; (ii) return the
surplus to the unit owners as a credit against the
remaining monthly assessments for the current fiscal year;
(iii) return the surplus to the unit owners in the form of
a direct payment to the unit owners; or (iv) maintain the
funds in the operating account, in which case the funds
shall be applied as a credit when calculating the following
year's annual budget. If the fiscal year ends in a deficit,

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then, to the extent that there are not any contrary
provisions in the association's declaration and bylaws,
the board of managers has the authority, in its discretion,
to address the deficit by incorporating it into the
following year's annual budget. If 20% of the unit owners
of the association deliver a petition objecting to the
action under this paragraph (5) within 30 days after notice
to the unit owners of the action, the board of managers
shall call a meeting of the unit owners within 30 days of
the date of delivery of the petition. At the meeting, the
unit owners may vote to select a different option than the
option selected by the board of managers. Unless a majority
of the total votes of the unit owners are cast at the
meeting to reject the board's selection and select a
different option, the board's decision is ratified.
(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

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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 bonafide 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

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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

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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

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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

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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.
(Source: P.A. 100-292, eff. 1-1-18.)
(765 ILCS 605/15) (from Ch. 30, par. 315)
Sec. 15. Sale of property.
(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 3 three units, or and not less than 75%
where the property contains 4 to 6 or more units, or not less
than 85% where the property contains 7 or more units may, by
affirmative vote at a meeting of unit owners duly called for
such purpose, elect to sell the property. A vote to approve a
deconversion shall be independently conducted and shall be at
the expense of the party acquiring ownership rights to the
property. Any party, including the board of managers, involved
in the marketing or sale of the property may be privy only to
the percentage of votes collected, but not the voting tallies,
until the final vote is revealed. Such action shall be binding
upon all unit owners, and it shall thereupon become the duty of

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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 greater of: (i) the value of
his or her interest, as determined by a fair appraisal, less
the amount of any unpaid assessments or charges due and owing
from such unit owner or (ii) the outstanding balance of any
bona fide debt secured by the objecting unit owner's interest
which was incurred by such unit owner in connection with the
acquisition or refinance of the unit owner's interest, less the
amount of any unpaid assessments or charges due and owing from
such unit owner. The objecting unit owner is also entitled to
receive from the proceeds of a sale under this Section
reimbursement for reasonable relocation costs, determined in
the same manner as under the federal Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970,
as amended from time to time, and as implemented by regulations
promulgated under that Act.
(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

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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. The changes made by
this amendatory Act of the 100th General Assembly apply to
sales under this Section that are pending or commenced on and
after the effective date of this amendatory Act of the 100th
General Assembly.
(c) An association that has requested or received a written
offer to sell the property shall inform the unit owners that
the association shall choose counsel to represent its interests
during the real estate sale process with an affirmative vote of
not less than 75% of ownership. The association shall inform
the unit owners at the time of an affirmative vote to
investigate an offer to purchase a condominium property or list
the property for sale that: (1) the attorney of record
represents the association and not the individual unit owner;
(2) the interests of the association may conflict with the
interests of a specific unit owner; and (3) any unit owner may
retain the representation of independent counsel. The attorney
of record, or his or her employees, agents, or assigns, shall
not engage in any work, paid or unpaid, that creates an actual
or potential conflict of interest. If a conflict of interest

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exists, the attorney shall inform the association.
(d) It is a violation of this Act for a person,
partnership, corporation, or other legal entity entitled to
transact business on behalf of others, to communicate with a
unit owner, or any member of his or her household, for the
purpose of purchasing his or her property once the unit owner
has affirmatively requested that such a communication not be
made.
(e) It is a violation of this Act for a buyer, or his or her
agent, representative, assign, or affiliate, who is
considering buying a condominium building to make or attempt to
make an offer on the property, or, in the process of purchasing
the property, including any time after an offer has been made,
to offer any consideration, financial or otherwise, as an
incentive to procure the affirmative vote to the bulk sale from
the unit owner or to influence the outcome of the condominium
ownership's vote in favor of the buyer or his or her agent,
representative, assign, affiliate, or related entity. A buyer
may offer financial consideration in exchange for the purchase
of a condominium unit or building, however, the buyer, or his
or her agent, representative, or affiliate, may not offer
consideration to any individual or entity who is an owner in
the building he or she is seeking to purchase beyond what has
been specified for each owner in the purchase offer document.
Consideration, financial or otherwise, in excess of what was
promised to each unit owner in a written contract that all

SB3731 - 18 - LRB101 20341 LNS 69886 b
owners are privy to is a prohibited form of vote-buying and a
disallowed quid pro quo. Any violation of this subsection that
occurs without the disclosure and consent of the board of
managers and the condominium association shall render the bulk
sale agreement illegitimate and unenforceable.
(Source: P.A. 100-292, eff. 1-1-18.)
(765 ILCS 605/18) (from Ch. 30, par. 318)
Sec. 18. Contents of bylaws. 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 25

SB3731 - 19 - LRB101 20341 LNS 69886 b
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

SB3731 - 20 - LRB101 20341 LNS 69886 b
owners with 20 percent of the votes of the association
delivered to the board within 21 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

SB3731 - 21 - LRB101 20341 LNS 69886 b
considered and authorized in the first fiscal year in which
the assessment is approved;
(9)(A) that every meeting of the board of managers
shall be open to any unit owner, except that the board may
close any portion of a noticed meeting or meet separately
from a noticed meeting to: (i) 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) discuss the
appointment, employment, engagement, or dismissal of an
employee, independent contractor, agent, or other provider
of goods and services, (iii) interview a potential
employee, independent contractor, agent, or other provider
of goods and services, (iv) discuss violations of rules and
regulations of the association, (v) discuss a unit owner's
unpaid share of common expenses, or (vi) consult with the
association's legal counsel; that any vote on these matters
shall take place at a meeting of the board of managers or
portion thereof open to any unit owner;
(B) that board members may participate in and act at
any meeting of the board of managers in person, by
telephonic means, or by use of any acceptable technological
means whereby all persons participating in the meeting can
communicate with each other; that participation
constitutes attendance and presence in person at the

SB3731 - 22 - LRB101 20341 LNS 69886 b
meeting;
(C) that any unit owner may record the proceedings at
meetings of the board of managers or portions thereof
required to be open by this Act by tape, film or other
means, and that the board may prescribe reasonable rules
and regulations to govern the right to make such
recordings;
(D) that notice of every meeting of the board of
managers shall be given to every board member at least 48
hours prior thereto, unless the board member waives notice
of the meeting pursuant to subsection (a) of Section 18.8;
and
(E) that notice of every meeting 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; that notice of every meeting of
the board of managers shall also be given at least 48 hours
prior to the meeting, or such longer notice as this Act may
separately require, to: (i) each unit owner who has
provided the association with written authorization to
conduct business by acceptable technological means, and
(ii) to the extent that the condominium instruments of an

SB3731 - 23 - LRB101 20341 LNS 69886 b
association require, to each other unit owner, as required
by subsection (f) of Section 18.8, by mail or delivery, and
that no other notice of a meeting of the board of managers
need be given to any unit owner;
(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

SB3731 - 24 - LRB101 20341 LNS 69886 b
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 or affiliate of the corporation 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 30 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

SB3731 - 25 - LRB101 20341 LNS 69886 b
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;
(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; and
(21) that the board may ratify and confirm actions of
the members of the board taken in response to an emergency,
as that term is defined in subdivision (a)(8)(iv) of this
Section; that the board shall give notice to the unit
owners of: (i) the occurrence of the emergency event within
7 business days after the emergency event, and (ii) the
general description of the actions taken to address the
event within 7 days after the emergency event.
The intent of the provisions of Public Act 99-472

SB3731 - 26 - LRB101 20341 LNS 69886 b
adding this paragraph (21) is to empower and support boards
to act in emergencies.
(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, provided that
in voting on amendments to the association's bylaws, a unit
owner who is in arrears on the unit owner's regular or
separate assessments for 60 days or more, shall not be
counted for purposes of determining if a quorum is present,
but that unit owner retains the right to vote on amendments
to the association's bylaws;
(2) that the association shall have one class of voting
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

SB3731 - 27 - LRB101 20341 LNS 69886 b
of such meeting except that notice may be sent, to the
extent the condominium instruments or rules adopted
thereunder expressly so provide, by electronic
transmission consented to by the unit owner to whom the
notice is given, provided the director and officer or his
agent certifies in writing to the delivery by electronic
transmission;
(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

SB3731 - 28 - LRB101 20341 LNS 69886 b
other owners of the unit;
(9)(A) except as provided in subparagraph (B) of this
paragraph (9) in connection with board elections, that 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; to the extent the condominium instruments
or rules adopted thereunder expressly so provide, a vote or
proxy may be submitted by electronic transmission,
provided that any such electronic transmission shall
either set forth or be submitted with information from
which it can be determined that the electronic transmission
was authorized by the unit owner or the unit owner's proxy;
(B) that 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

SB3731 - 29 - LRB101 20341 LNS 69886 b
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;
(B-5) that 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 subparagraph, 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 any acceptable
technological means as defined in Section 2 of this Act;
instructions regarding the use of electronic means for
voting shall be distributed to all unit owners not less

SB3731 - 30 - LRB101 20341 LNS 69886 b
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; the deadline shall be
no more than 7 days before the instructions for voting
using electronic or acceptable technological means is
distributed to unit owners; every instruction notice 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 voting through
electronic or acceptable technological means the
opportunity to cast votes for candidates whose names do not
appear on the ballot; a unit owner who submits a vote using
electronic or acceptable technological means may request
and cast a ballot in person at the election meeting,
thereby voiding any vote 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 30 days after the board's approval of a
rule adopted pursuant to subparagraph (B) or subparagraph
(B-5) 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;

SB3731 - 31 - LRB101 20341 LNS 69886 b
(D) that votes cast by ballot under subparagraph (B) or
electronic or acceptable technological means under
subparagraph (B-5) of this paragraph (9) are valid for the
purpose of establishing a quorum;
(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 sales 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

SB3731 - 32 - LRB101 20341 LNS 69886 b
toward a quorum, be permitted to vote for a particular
office or be elected and serve on the board. Satisfactory
evidence of the installment sales contract shall be made
available to the association or its agents. For purposes of
this subsection, "installment sales contract" shall have
the same meaning as set forth in Section 5 of the
Installment Sales Contract Act and Section 1(e) of the
Dwelling Unit Installment Contract Act;
(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:
(i) merger or consolidation of the association;
(ii) 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
(iii) 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

SB3731 - 33 - LRB101 20341 LNS 69886 b
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

SB3731 - 34 - LRB101 20341 LNS 69886 b
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

SB3731 - 35 - LRB101 20341 LNS 69886 b
"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 September 21, 1985 (the effective
date of Public Act 84-722), 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.

SB3731 - 36 - LRB101 20341 LNS 69886 b
(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 August 30, 1984
(the effective date of Public Act 83-1271).
(ii) With regard to any lease entered into subsequent
to July 1, 1990 (the effective date of Public Act 86-991),
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

SB3731 - 37 - LRB101 20341 LNS 69886 b
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 and garage units
or storage units, or both, shall have, in total, no more
votes than their aggregate percentage of ownership in the
common elements; this shall mean that if garage units or
storage units, or both, are to be given a vote, or portion
of a vote, that the association must add the total number
of votes cast of garage units, storage units, or both, and

SB3731 - 38 - LRB101 20341 LNS 69886 b
divide the total by the number of garage units, storage
units, or both, and multiply by the aggregate percentage of
ownership of garage units and storage units to determine
the vote, or portion of a vote, that garage units or
storage units, or both, have. 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.
(r) Unless a lesser percentage of ownership is provided
for in the bylaws, no person, heir assign, family member,
affiliate, partnership, corporation, proxy of a
corporation and its beneficial owners, other legal entity
entitled to transact business on behalf of others, or legal
entity acting on behalf of a corporation or its beneficial
owners may own more than 10% of the units for a property
containing 30 or more units, more than 15% of the units for
a property containing 20 to 29 units, more than 20% of the
units for a property containing 5 to 19 units, and no more

SB3731 - 39 - LRB101 20341 LNS 69886 b
than a single unit for a property containing fewer than 5
units.
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.
(Source: P.A. 99-472, eff. 6-1-16; 99-567, eff. 1-1-17; 99-642,
eff. 7-28-16; 100-292, eff. 1-1-18; 100-416, eff. 1-1-18;
100-863, eff. 8-14-18.)
(765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
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,

SB3731 - 40 - LRB101 20341 LNS 69886 b
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 21 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. The board of managers shall obtain statements
from licensed independent contractors validating the need
and the cost for any expenditures for repair, replacement,

SB3731 - 41 - LRB101 20341 LNS 69886 b
or restoration of the common elements.
(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

SB3731 - 42 - LRB101 20341 LNS 69886 b
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.

SB3731 - 43 - LRB101 20341 LNS 69886 b
(m) 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 or high speed Internet 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 or bulk high speed Internet 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

SB3731 - 44 - LRB101 20341 LNS 69886 b
assessing body.
(q) To reasonably accommodate the needs of a unit owner
who is a person with a disability 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.
(s) To adopt and amend rules and regulations (l)
authorizing electronic delivery of notices and other
communications required or contemplated by this Act to each
unit owner who provides the association with written
authorization for electronic delivery and an electronic
address to which such communications are to be
electronically transmitted; and (2) authorizing each unit

SB3731 - 45 - LRB101 20341 LNS 69886 b
owner to designate an electronic address or a U.S. Postal
Service address, or both, as the unit owner's address on
any list of members or unit owners which an association is
required to provide upon request pursuant to any provision
of this Act or any condominium instrument.
(t) To reject any arrangement that establishes an
agreement for a buyer to purchase a condominium building,
including a letter of intent.
(u) To refrain from investigating an offer to purchase
a condominium property or listing the property for sale
without first receiving authorization from the association
through an affirmative vote of not less than 75% of unit
owners based on the percentage of ownership.
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. Every officer and member of the
board who violates, participates in, or permits any officer,
agent, or assign of the board to breach his or her fiduciary
duty shall be held liable in his or her personal or individual
capacity under this Section for the following:
(1) an act or omission that is grossly negligent;
(2) a breach of the officer's duty of loyalty to the
association;
(3) an act or omission not in good faith or that
involves intentional misconduct or a knowing violation of

SB3731 - 46 - LRB101 20341 LNS 69886 b
the law;
(4) a transaction from which the officer derived an
improper personal benefit; or
(5) an act or omission occurring before the effective
date of a provision authorized by this Section.
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.
(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
100-292, eff. 1-1-18.)
(765 ILCS 605/19) (from Ch. 30, par. 319)
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

SB3731 - 47 - LRB101 20341 LNS 69886 b
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;
(6.5) all statements from licensed independent
contractors validating the need and the cost for any
expenditures for repair, replacement, or restoration of
the common elements;
(7) a current listing of the names, addresses, email
addresses, telephone numbers, 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

SB3731 - 48 - LRB101 20341 LNS 69886 b
managers; and
(9) the books and records for the association's current
and 10 immediately preceding fiscal years, including, but
not limited to, itemized and detailed records of all
receipts, expenditures, and accounts; and .
(10) the communications of any member of the board of
managers regarding an attempt to sell the condominium
property.
(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), (5), (6), (6.5), and (9), and
(10) of subsection (a) of this Section, in person or by agent,
at any reasonable time or times, at the association's principal
office. The board of managers shall provide unit owners a copy
of the records described in subdivision (6.5) of subsection
(a), so that the unit owners may review them before voting to
approve expenditures. 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 10 business 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), (5), (6), (6.5), and (9), and (10) of subsection (a) of

SB3731 - 49 - LRB101 20341 LNS 69886 b
this Section shall be entitled to recover reasonable attorney's
fees and costs from the association.
(c) (Blank).
(d) (Blank).
(d-5) As used in this Section, "commercial purpose" means
the use of any part of a record or records described in
subdivisions (7) and (8) of subsection (a) of this Section, or
information derived from such records, in any form for sale,
resale, or solicitation or advertisement for sales or services.
(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 (7) and (8) of subsection (a) of this Section, in
person or by agent, at any reasonable time or times but only
for a purpose that relates to the association, 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.
As a condition for exercising this right, the board of managers
or authorized agent of the association may require the member
to certify in writing that the information contained in the
records obtained by the member will not be used by the member
for any commercial purpose or for any purpose that does not
relate to the association. The board of managers of the
association may impose a fine in accordance with item (l) of

SB3731 - 50 - LRB101 20341 LNS 69886 b
Section 18.4 upon any person who makes a false certification.
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 10 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 10 business days of receipt of the member's
written request. All information and documentation regarding
the process, including all parties involved and all information
and documentation regarding the need for and cost of a repair,
replacement, or other alleged need for a special assessment for
the condominium property, shall be disclosed to all unit owners
at least 30 days prior to a vote.
Any member who prevails in an enforcement action to compel
examination of records described in subdivision (7) or (8) 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

SB3731 - 51 - LRB101 20341 LNS 69886 b
examination under this Section may 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 may 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

SB3731 - 52 - LRB101 20341 LNS 69886 b
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.
(Source: P.A. 100-292, eff. 1-1-18; 100-863, eff. 8-14-18.)
SB3731 - 53 - LRB101 20341 LNS 69886 b
INDEX
Statutes amended in order of appearance