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THE
CONDOMINIUM PROPERTY ACT OF THE STATE OF ILLINOIS
(including amendments effective through August 19, 1999. 765 ILCS
605/ 1 to 32.
(765 ILCS 605/1)
Sec. 1. Short title.
This Act shall be known and may be cited as the "Condominium
Property Act."
(Source: Laws 1963, p. 1120.)
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(765 ILCS 605/2)
Sec. 2. Definitions.
As used in this Act, unless the context
otherwise requires:
(a) "Declaration" means the instrument by which the property is
submitted to the provisions of this Act, as hereinafter provided, and
such declaration as from time to time amended.
(b) "Parcel" means the lot or lots, tract or tracts of land,
described in the declaration, submitted to the provisions of this Act.
(c) "Property" means all the land, property and space comprising
the parcel, all improvements and structures erected, constructed or
contained therein or thereon, including the building and all easements,
rights and appurtenances belonging thereto, and all fixtures and
equipment intended for the mutual use, benefit or enjoyment of the unit
owners, submitted to the provisions of this Act.
(d) "Unit" means a part of the property designed and intended for
any type of independent use.
(e) "Common Elements" means all portions of the property except the
units, including limited common elements unless otherwise specified.
(f) "Person" means a natural individual, corporation, partnership,
trustee or other legal entity capable of holding title to real property.
(g) "Unit Owner" means the person or persons whose estates or
interests, individually or collectively, aggregate fee simple absolute
ownership of a unit, or, in the case of a leasehold condominium, the
lessee or lessees of a unit whose leasehold ownership of the unit
expires simultaneously with the lease described in item (x) of this
Section.
(h) "Majority" or "majority of the unit owners" means the owners of
more than 50% in the aggregate in interest of the undivided ownership of
the common elements. Any specified percentage of the unit owners means
such percentage in the aggregate in interest of such undivided
ownership. "Majority" or "majority of the members of the board of
managers" means more than 50% of the total number of persons
constituting such board pursuant to the bylaws. Any specified
percentage of the members of the board of managers means that percentage
of the total number of persons constituting such board pursuant to the
bylaws.
(i) "Plat" means a plat or plats of survey of the parcel and of all
units in the property submitted to the provisions of this Act, which may
consist of a three-dimensional horizontal and vertical delineation of
all such units.
(j) "Record" means to record in the office of the recorder or,
whenever required, to file in the office of the Registrar of Titles of
the county wherein the property is located.
(k) "Conversion Condominium" means a property which contains
structures, excepting those newly constructed and intended for
condominium ownership, which are, or have previously been, wholly or
partially occupied before recording of condominium instruments by
persons other than those who have contracted for the purchase of
condominiums.
(l) "Condominium Instruments" means all documents and authorized
amendments thereto recorded pursuant to the provisions of the Act,
including the declaration, bylaws and plat.
(m) "Common Expenses" means the proposed or actual expenses
affecting the property, including reserves, if any, lawfully assessed by
the Board of Managers of the Unit Owner's Association.
(n) "Reserves" means those sums paid by unit owners which are
separately maintained by the board of managers for purposes specified by
the board of managers or the condominium instruments.
(o) "Unit Owners' Association" or "Association" means the
association of all the unit owners, acting pursuant to bylaws through
its duly elected board of managers.
(p) "Purchaser" means any person or persons other than the
Developer who purchase a unit in a bona fide transaction for value.
(q) "Developer" means any person who submits property legally or
equitably owned in fee simple by the developer, or leased to the
developer under a lease described in item (x) of this Section, to the
provisions of this Act, or any person who offers units legally or
equitably owned in fee simple by the developer, or leased to the
developer under a lease described in item (x) of this Section, for sale
in the ordinary course of such person's business, including any
successor or successors to such developers' entire interest in the
property other than the purchaser of an individual unit.
(r) "Add-on Condominium" means a property to which additional
property may be added in accordance with condominium instruments and
this Act.
(s) "Limited Common Elements" means a portion of the common
elements so designated in the declaration as being reserved for the use
of a certain unit or units to the exclusion of other units, including
but not limited to balconies, terraces, patios and parking spaces or
facilities.
(t) "Building" means all structures, attached or unattached,
containing one or more units.
(u) "Master Association" means an organization described in Section
18.5 whether or not it is also an association described in Section 18.3.
(v) "Developer Control" means such control at a time prior to the
election of the Board of Managers provided for in Section 18.2(b) of
this Act.
(w) "Meeting of Board of Managers or Board of Master Association"
means any gathering of a quorum of the members of the Board of Managers
or Board of the Master Association held for the purpose of conducting
board business.
(x) "Leasehold Condominium" means a property submitted to the
provisions of this Act which is subject to a lease, the expiration or
termination of which would terminate the condominium and the lessor of
which is exempt from taxation under Section 501(c)(3) of the Internal
Revenue Code of 1986, as amended.
(Source: P.A. 88-417; 88-626, eff. 9-9-94; 89-89, eff. 6-30-95.)
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(765 ILCS 605/2.1)
Sec. 2.1. Applicability.
Unless otherwise expressly provided in
another Section, the provisions of this Act are applicable to all
condominiums in this State. Any provisions of a condominium instrument
that contains provisions inconsistent with the provisions of this Act
are void as against public policy and ineffective.
(Source: P.A. 89-41, eff. 6-23-95.)
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(765 ILCS 605/3)
Sec. 3. Submission of property.
Whenever the owner or owners in fee
simple, or the sole lessee or all lessees of a lease described in item
(x) of Section 2, of a parcel intend to submit such property to the
provisions of this Act, they shall do so by recording a declaration,
duly executed and acknowledged, expressly stating such intent and
setting forth the particulars enumerated in Section 4. If the
condominium is a leasehold condominium, then every lessor of the lease
creating a leasehold interest as described in item (x) of Section 2
shall also execute the declaration and such lease shall be recorded
prior to the recording of the declaration.
(Source: P.A. 89-89, eff. 6-30-95.)
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(765 ILCS 605/4)
Sec. 4. Declaration - Contents.
The declaration shall set forth the following particulars:
(a) The legal description of the parcel.
(b) The legal description of each unit, which may consist of the
identifying number or symbol of such unit as shown on the plat.
(c) The name of the condominium, which name shall include the word
"Condominium" or be followed by the words "a Condominium".
(d) The name of the city and county or counties in which the
condominium is located.
(e) The percentage of ownership interest in the common elements
allocated to each unit. Such percentages shall be computed by taking as
a basis the value of each unit in relation to the value of the property
as a whole, and having once been determined and set forth as herein
provided, such percentages shall remain constant unless otherwise
provided in this Act or thereafter changed by agreement of all unit
owners.
(f) If applicable, all matters required by this Act in connection
with an add-on condominium.
(g) A description of both the common and limited common elements,
if any, indicating the manner of their assignment to a unit or units.
(h) If applicable, all matters required by this Act in connection
with a conversion condominium.
(h-5) If the condominium is a leasehold condominium, then:
(1) The date of recording and recording document number for
the lease creating a leasehold interest as described in item (x) of
Section 2;
(2) The date on which the lease is scheduled to expire;
(3) The legal description of the property subject to the
lease;
(4) Any right of the unit owners to redeem the reversion and
the manner whereby those rights may be exercised, or a statement
that the unit owners do not have such rights;
(5) Any right of the unit owners to remove any improvements
within a reasonable time after the expiration or termination of the
lease, or a statement that the unit owners do not have such rights;
(6) Any rights of the unit owners to renew the lease and the
conditions of any renewal, or a statement that the unit owners do
not have such rights; and
(7) A requirement that any sale of the property pursuant to
Section 15 of this Act, or any removal of the property pursuant to
Section 16 of this Act, must be approved by the lessor under the
lease.
(i) Such other lawful provisions not inconsistent with the
provisions of this Act as the owner or owners may deem desirable in
order to promote and preserve the cooperative aspect of ownership of the
property and to facilitate the proper administration thereof.
(Source: P.A. 89-89, eff. 6-30-95.)
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(765 ILCS 605/4.1)
Sec. 4.1. Construction, interpretation, and validity of Condominium
Instruments.
(a) Except to the extent otherwise provided by the declaration or
other condominium instruments:
(1) The terms defined in Section 2 of this Act shall be deemed
to have the meaning specified therein unless the context otherwise
requires.
(2) To the extent that perimeter and partition walls, floors
or ceilings are designated as the boundaries of the units or of any
specified units, all decorating, wall and floor coverings, paneling,
molding, tiles, wallpaper, paint, finished flooring and any other
materials constituting any part of the finished surfaces thereof,
shall be deemed a part of such units, while all other portions of
such walls, floors or ceilings and all portions of perimeter doors
and all portions of windows in perimeter walls shall be deemed part
of the common elements.
(3) If any chutes, flues, ducts, conduits, wires, bearing
walls, bearing columns, or any other apparatus lies partially within
and partially outside of the designated boundaries of a unit, any
portions thereof serving only that unit shall be deemed a part of
that unit, while any portions thereof serving more than one unit or
any portion of the common elements shall be deemed a part of the
common elements.
(4) Subject to the provisions of paragraph (3) of subsection
(a), all space and other fixtures and improvements within the
boundaries of a unit shall be deemed a part of that unit.
(5) Any shutters, awnings, window boxes, doorsteps, porches,
balconies, patios, perimeter doors, windows in perimeter walls, and
any other apparatus designed to serve a single unit shall be deemed
a limited common element appertaining to that unit exclusively.
(6) All provisions of the declaration, bylaws and other
condominium instruments are severable.
(b) Except to the extent otherwise provided by the declaration or
by other condominium instruments recorded prior to the effective date of
this amendatory Act of 1984, in the event of a conflict between the
provisions of the declaration and the bylaws or other condominium
instruments, the declaration prevails except to the extent the
declaration is inconsistent with this Act.
(c) A provision in the initial declaration limiting ownership,
rental or occupancy of a condominium unit to a person 55 years of age or
older shall be valid and deemed not to be in violation of Article 3 of
the Illinois Human Rights Act provided that the person or the immediate
family of a person owning, renting or lawfully occupying such unit prior
to the recording of the initial declaration shall not be deemed to be in
violation of such age restriction so long as they continue to own or
reside in such unit.
(Source: P.A. 89-41, eff. 6-23-95.)
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(765 ILCS 605/5)
Sec. 5. Plat to be recorded
Simultaneously with the recording of
the declaration there shall be recorded a plat as defined in Section 2,
which plat shall be made by a Registered Illinois Land Surveyor and
shall set forth (1) all angular and linear data along the exterior
boundaries of the parcel; (2) the linear measurements and location, with
reference to said exterior boundaries, of any buildings improvements and
structures located on the parcel; and (3) the elevations at, above, or
below official datum of the finished or unfinished interior surfaces of
the floors and ceilings and the linear measurements of the finished or
unfinished interior surfaces of the perimeter walls, and lateral
extensions thereof or other monumental perimeter boundaries, where there
are no wall surfaces, that part of every unit which is in any building
on the parcel, and the locations of such wall surfaces or unit
boundaries with respect to the exterior boundaries of the parcel
projected vertically upward; (4) the elevations at, above, or below
official datum and the linear measurements of the perimeter boundaries,
of that part of the property which constitute a unit or a part thereof
outside any building on the parcel and the location of the boundaries
with respect to the exterior vertical boundaries of the parcel,
projected vertically upward. Every such unit shall be identified on the
plat by a distinguishing number or other symbol; (5) if the Registered
Illinois Land Surveyor does not certify that such plat accurately
depicts the matters set forth in subsection (3) and (4) above, such a
certification for any particular unit or units as built shall be
recorded prior to the first conveyance of such particular unit or units
as part of an amended plat, thereby complying with the requirements of
subsections (3) and (4) of this Section; (6) when adding additional
property to an add-on condominium, the developer, or in the event of any
other alteration in the boundaries or location of a unit, any building
on the parcel or the parcel authorized in this Act, the president of the
board of managers or other officer authorized and designated by the
condominium instruments shall record an amended plat of survey
conforming to the requirements of this Section, or shall provide a
certificate of a plat previously recorded that is in accordance with the
certification requirements of this subsection. Such amended plat or
certificate shall be certified by a Registered Illinois Land Surveyor as
to accuracy in depicting changes in boundary or location in the portions
of the property set forth in subsections (1), (2), (3) and (4) above,
and that such changes have been completed.
(Source: P.A. 82-246.)
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(765 ILCS 605/6)
Sec. 6. Recording - Effect
Upon compliance with the provisions of
Sections 3, 4, and 5 and upon recording of the declaration and plat the
property shall become subject to the provisions of this Act, and all
units shall thereupon be capable of ownership in fee simple or any
lesser estate, and may thereafter be conveyed, leased, mortgaged or
otherwise dealt with in the same manner as other real property, but
subject, however, to the limitations imposed by this Act.
Each unit owner shall be entitled to the percentage of ownership in
the common elements appertaining to such unit as computed and set forth
in the declaration pursuant to subsection (e) of Section 4 hereof, and
ownership of such unit and of the owner's corresponding percentage of
ownership in the common elements shall not be separated, except as
provided in this Act, nor, except by the recording of an amended
declaration and amended plat approved in writing by all unit owners,
shall any unit, by deed, plat, judgment of a court or otherwise, be
subdivided or in any other manner separated into tracts or parcels
different from the whole unit as shown on the plat, except as provided
in this Act.
The condominium instruments may contain provisions in accordance
with this Act providing for the reallocation and adjustment of the
percentage of ownership in the common elements appertaining to a unit or
units in circumstances relating to the following transactions: an add-on
condominium; condemnation; damage or destruction of all or a portion of
the property; and the subdivision or combination of units. Interests in
the common elements shall be re-allocated, and the transaction shall be
deemed effective at the time of the recording of an amended plat
depicting same pursuant to Section 5 of this Act. Simultaneously with
the recording of the amended plat, the developer in the case of an
add-on condominium, or the President of the board of managers or other
officer in other instances authorized in this Act shall execute and
record an amendment to the declaration setting forth all pertinent
aspects of the transaction including the reallocation or adjustment of
the common interest. The amendment shall contain legal descriptions
sufficient to indicate the location of any property involved in the
transaction.
(Source: P.A. 84-1308.)
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(765 ILCS 605/7)
Sec. 7. Descriptions in deeds, etc.
Every deed, lease, mortgage or other instrument may legally describe
a unit by its identifying number or symbol as shown on the plat and as
set forth in the declaration, and every such description shall be deemed
good and sufficient for all purposes, and shall be deemed to convey,
transfer, encumber or otherwise affect the owner's corresponding
percentage of ownership in the common elements even though the same is
not expressly mentioned or described therein.
(Source: Laws 1963, p. 1120.)
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(765 ILCS 605/8)
Sec. 8. Partition of common elements prohibited.
As long as the property is subject to the provisions of this Act the
common elements shall, except as provided in Section 14 hereof, remain
undivided, and no unit owner shall bring any action for partition or
division of the common elements. Any covenant or agreement to the
contrary shall be void.
(Source: Laws 1963, p. 1120.)
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(765 ILCS 605/9)
Sec. 9. Sharing of expenses - Lien for nonpayment.
(a) All common expenses incurred or accrued prior to the first
conveyance of a unit shall be paid by the developer, and during this
period no common expense assessment shall be payable to the association.
It shall be the duty of each unit owner including the developer to pay
his proportionate share of the common expenses commencing with the first
conveyance. The proportionate share shall be in the same ratio as his
percentage of ownership in the common elements set forth in the
declaration.
(b) The condominium instruments may provide that common expenses
for insurance premiums be assessed on a basis reflecting increased
charges for coverage on certain units.
(c) Budget and reserves.
(1) The board of managers shall prepare and distribute to all
unit owners a detailed proposed annual budget, setting forth with
particularity all anticipated common expenses by category as well as
all anticipated assessments and other income. The initial budget
and common expense assessment based thereon shall be adopted prior
to the conveyance of any unit. The budget shall also set forth each
unit owner's proposed common expense assessment.
(2) All budgets adopted by a board of managers on or after
July 1, 1990 shall provide for reasonable reserves for capital
expenditures and deferred maintenance for repair or replacement of
the common elements. To determine the amount of reserves
appropriate for an association, the board of managers shall take
into consideration the following: (i) the repair and replacement
cost, and the estimated useful life, of the property which the
association is obligated to maintain, including but not limited to
structural and mechanical components, surfaces of the buildings and
common elements, and energy systems and equipment; (ii) the current
and anticipated return on investment of association funds; (iii) any
independent professional reserve study which the association may
obtain; (iv) the financial impact on unit owners, and the market
value of the condominium units, of any assessment increase needed to
fund reserves; and (v) the ability of the association to obtain
financing or refinancing.
(3) Notwithstanding the provisions of this subsection (c), an
association without a reserve requirement in its condominium
instruments may elect to waive in whole or in part the reserve
requirements of this Section by a vote of 2/3 of the total votes of
the association. Any association having elected under this paragraph
(3) to waive the provisions of subsection (c) may by a vote of 2/3
of the total votes of the association elect to again be governed by
the requirements of subsection (c).
(4) In the event that an association elects to waive all or
part of the reserve requirements of this Section, that fact must be
disclosed after the meeting at which the waiver occurs by the
association in the financial statements of the association and,
highlighted in bold print, in the response to any request of a
prospective purchaser for the information prescribed under Section
22.1; and no member of the board of managers or the managing agent
of the association shall be liable, and no cause of action may be
brought for damages against these parties, for the lack or
inadequacy of reserve funds in the association budget.
(d) (Blank).
(e) The condominium instruments may provide for the assessment, in
connection with expenditures for the limited common elements, of only
those units to which the limited common elements are assigned.
(f) Payment of any assessment shall be in amounts and at times
determined by the board of managers.
(g) Lien.
(1) If any unit owner shall fail or refuse to make any payment
of the common expenses or the amount of any unpaid fine when due,
the amount thereof together with any interest, late charges,
reasonable attorney fees incurred enforcing the covenants of the
condominium instruments, rules and regulations of the board of
managers, or any applicable statute or ordinance, and costs of
collections shall constitute a lien on the interest of the unit
owner in the property prior to all other liens and encumbrances,
recorded or unrecorded, except only (a) taxes, special assessments
and special taxes theretofore or thereafter levied by any political
subdivision or municipal corporation of this State and other State
or federal taxes which by law are a lien on the interest of the unit
owner prior to preexisting recorded encumbrances thereon and (b)
encumbrances on the interest of the unit owner recorded prior to the
date of such failure or refusal which by law would be a lien thereon
prior to subsequently recorded encumbrances. Any action brought to
extinguish the lien of the association shall include the association
as a party.
(2) With respect to encumbrances executed prior to August 30,
1984 or encumbrances executed subsequent to August 30, 1984 which
are neither 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 encumbrances
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 encumbrances at the mailing
address set forth in the recorded encumbrance a statement of the
amounts and due dates of the unpaid common expenses with respect to
the encumbered unit, then, unless otherwise provided in the
declaration or bylaws, the prior recorded encumbrance shall be
subject to the lien of all unpaid common expenses with respect to
the unit which become due and payable within a period of 90 days
after the date of mailing of each such notice.
(3) The purchaser of a condominium unit at a judicial
foreclosure sale, or a mortgagee who receives title to a unit by
deed in lieu of foreclosure or judgment by common law strict
foreclosure or otherwise takes possession pursuant to court order
under the Illinois Mortgage Foreclosure Law, shall have the duty to
pay the unit's proportionate share of the common expenses for the
unit assessed from and after the first day of the month after the
date of the judicial foreclosure sale, delivery of the deed in lieu
of foreclosure, entry of a judgment in common law strict
foreclosure, or taking of possession pursuant to such court order.
Such payment confirms the extinguishment of any lien created
pursuant to paragraph (1) or (2) of this subsection (g) by virtue of
the failure or refusal of a prior unit owner to make payment of
common expenses, where the judicial foreclosure sale has been
confirmed by order of the court, a deed in lieu thereof has been
accepted by the lender, or a consent judgment has been entered by
the court.
(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 encumbrances 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 encumbrances holding a lien on a unit may pay any unpaid common
expenses payable with respect to the unit, and upon payment the
encumbrances 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. 91-357, eff. 7-29-99.)
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(765 ILCS 605/9.1(a)
Sec. 9.1.(a) Other liens; attachment and satisfaction.
Subsequent
to the recording of the declaration, no liens of any nature shall be
created or arise against any portion of the property except against an
individual unit or units. No labor performed or materials furnished
with the consent or at the request of a particular unit owner shall be
the basis for the filing of a mechanics' lien claim against any other
unit. If the performance of the labor or furnishing of the materials is
expressly authorized by the board of managers, each unit owner shall be
deemed to have expressly authorized it and consented thereto, and shall
be liable for the payment of his unit's proportionate share of any due
and payable indebtedness as set forth in this Section.
Each mortgage and other lien, including mechanics liens, securing a
debt incurred in the development of the land submitted to the provisions
of this Act for the sale of units shall be subject to the provisions of
this Act, subsequent to the conveyance of a unit to the purchaser.
In the event any lien exists against 2 or more units and the
indebtedness secured by such lien is due and payable, the unit owner of
any such unit so affected may remove such unit and the undivided
interest in the common elements appertaining thereto from such lien by
payment of the proportional amount of such indebtedness attributable to
such unit. In the event such lien exists against the units or against
the property, the amount of such proportional payment shall be computed
on the basis of the percentages set forth in the declaration. Upon
payment as herein provided, it is the duty of the encumbrances to
execute and deliver to the unit owner a release of such unit and the
undivided interest in the common elements appertaining thereto from such
lien, except that such proportional payment and release shall not
prevent the encumbrances from proceeding to enforce his rights against
any unit or interest with respect to which such lien has not been so
paid or released.
The owner of a unit shall not be liable for any claims, damages, or
judgments, including but not limited to State or local government fees
or fines, entered as a result of any action or inaction of the board of
managers of the association other than for mechanics' liens as set forth
in this Section. Unit owners other than the developer, members of the
board of managers other than the developer or developer representatives,
and the association of unit owners shall not be liable for any claims,
damages, or judgments, including but not limited to State or local
government fees or fines, entered as result of any action or inaction of
the developer other than for mechanics' liens as set forth in this
Section. Each unit owner's liability for any judgment entered against
the board of managers or the association, if any, shall be limited to
his proportionate share of the indebtedness as set forth in this
Section, whether collection is sought through assessment or otherwise. A
unit owner shall be liable for any claim, damage or judgment entered as
a result of the use or operation of his unit, or caused by his own
conduct. Before conveying a unit, a developer shall record and furnish
purchaser releases of all liens affecting that unit and its common
element interest which the purchaser does not expressly agree to take
subject to or assume, and the developer shall provide a surety bond or
substitute collateral for or insurance against liens for which a release
is not provided. After conveyance of such unit, no mechanics lien shall
be created against such unit or its common element interest by reason of
any subsequent contract by the developer to improve or make additions to
the property.
Each mortgagee or other lienholder of the unit of a common interest
community or of a unit subject to the Condominium Property Act shall
provide an address to the unit owners' association at the time the lien
or mortgage is recorded at which address such unit owners' association
shall send notice to such mortgagee or lienholder of any eminent domain
proceeding to which the association thereafter becomes a party. If the
mortgagee or lienholder has not provided an address for notice purposes
to the association, then such notice shall be sent to all mortgagees or
lienholders which are named insureds on the master policy of insurance
which exists or may exist on the common interest community or unit
subject to the Condominium Property Act.
(Source: P.A. 91-616, eff. 8-19-99.)
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(765 ILCS 605/9.1(b)
Sec. 9.1(b) Board of Managers' standing and capacity.
The board of managers shall have standing and capacity to act in a
representative capacity in relation to matters involving the common
elements or more than one unit, on behalf of the unit owners, as their
interests may appear.
(Source: P.A. 91-616, eff. 8-19-99.)
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(765 ILCS 605/9.2)
Sec. 9.2. Other remedies.
(a) In the event of any default by any unit owner, his tenant,
invitee or guest in the performance of his obligations under this Act or
under the declaration, bylaws, or the rules and regulations of the board
of managers, the board of managers or its agents shall have such rights
and remedies as provided in the Act or condominium instruments including
the right to maintain an action for possession against such defaulting
unit owner or his tenant for the benefit of all the other unit owners in
the manner prescribed by Article IX of the Code of Civil Procedure.
(b) Any attorneys' fees incurred by the Association arising out of
a default by any unit owner, his tenant, invitee or guest in the
performance of any of the provisions of the condominium instruments,
rules and regulations or any applicable statute or ordinance shall be
added to, and deemed a part of, his respective share of the common
expense.
(Source: P.A. 88-417.)
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(765 ILCS 605/9.3)
Sec. 9.3. Eminent domain proceedings; standing.
The unit owners'
association shall be named as defendant on behalf of all unit owners in
any eminent domain proceeding to take or damage property which is a
common element and which includes no portions of any units or limited
common elements. The association shall act therein on behalf of all
unit owners. Nothing contained herein shall bar a unit owner or
mortgagee or lienholder from intervening in the eminent domain
proceeding on his own behalf.
(Source: P.A. 86-826.)
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(765 ILCS 605/9.4)
Sec. 9.4. Eminent domain proceedings; notice.
After receipt of
summons in an action to take or damage a common element, the unit
owners' association shall provide to the plaintiff a list of the unit
owners, mortgagees and lienholders, and the plaintiff shall provide
notice by certified mail to the unit owners, mortgagees and lienholders.
The notice shall include the following:
(1) case name and number and jurisdiction in which the case is
filed;
(2) date of filing;
(3) brief description of the nature of the case;
(4) description of the property being damaged or taken;
(5) statement that the unit owner may petition the court to
intervene; and
(6) statement that the mortgagee or lienholder may petition the
court to intervene.
An immaterial error in providing notice shall not invalidate the
legal effect of the proceeding.
(Source: P.A. 86-826.)
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(765 ILCS 605/10)
Sec. 10. Separate taxation.
(a) Real property taxes, special assessments, and any other special
taxes or charges of the State of Illinois or of any political
subdivision thereof, or other lawful taxing or assessing body, which are
authorized by law to be assessed against and levied upon real property
shall be assessed against and levied upon each unit and the owner's
corresponding percentage of ownership in the common elements as a tract,
and not upon the property as a whole. For purposes of property taxes,
real property owned and used for residential purposes by a condominium
association, including a master association, but subject to the
exclusive right by easement, covenant, deed or other interest of the
owners of one or more condominium properties and used exclusively by the
unit owners for recreational or other residential purposes shall be
assessed at $1.00 per year. The balance of the value of the property
shall be assessed to the condominium unit owners. In counties containing
1,000,000 or more inhabitants, any person desiring to establish or to
reestablish an assessment of $1.00 under this Section shall make
application therefor and be subject to the provisions of Section 10-35
of the Property Tax Code.
(b) Each condominium unit shall be only subject to the tax rate for
those taxing districts in which such unit is actually, physically
located. The county clerk shall not apply a rate which is an average of
two or more different districts to any condominium unit.
(c) Upon authorization by a two-thirds vote of the members of the
board of managers or by the affirmative vote of not less than a majority
of the unit owners at a meeting duly called for such purpose, or upon
such greater vote as may be required by the declaration or bylaws, the
board of managers acting on behalf of all unit owners shall have the
power to seek relief from or in connection with the assessment or levy
of any such taxes, special assessments or charges, and to charge and
collect all expenses incurred in connection therewith as common
expenses.
(Source: P.A. 88-670, eff. 12-2-94.)
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(765 ILCS 605/11)
Sec. 11. Tax deeds.
In the event any person shall acquire or be entitled to the issuance
of a tax deed conveying the interest of any unit owner, the interest so
acquired shall be subject to all the provisions of this Act and to the
terms, provisions, covenants, conditions and limitations contained in
the declaration, the plat, the bylaws or any deed affecting such
interest then in force.
(Source: Laws 1963, p. 1120.)
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(765 ILCS 605/12)
Sec. 12. Insurance.
(a) (1) The board of managers shall have the
authority to and shall obtain, except as otherwise provided in Section
12.1, insurance for the property against loss or damage by fire and such
other hazards as are covered under standard extended coverage provisions
for the full insurable replacement cost of the common elements and the
units. Every insurer issuing a policy against loss or damage by fire and
such other hazards as are covered under standard extended coverage to a
condominium association shall print on or attach to the premium notice
the following statement: "The Condominium Property Act requires every
condominium association to obtain insurance for the property against
loss or damage by fire and such other hazards as are covered under the
standard extended coverage provisions for the full insurable replacement
costs. This policy may or may not satisfy this requirement. Please
examine your policy carefully to determine if it complies with these
requirements." The full insurable replacement cost of the units may
include the replacement cost value of betterments and improvements made
in and to a unit by a unit owner if it is so provided by the condominium
declaration, and if it is so provided in the condominium instruments,
any increase premium charge therefor shall be assessed to that unit
owner under the provisions of Section 9 hereof.
(2) Such insurance coverage shall be written in the name of, and
the proceeds thereof shall be deemed payable to, the board of managers,
as trustee for each of the unit owners in the percentages established in
the declaration. Any insurance policy obtained for the property pursuant
to paragraph (1) of subsection (a) of this Section, which fails to
contain the trustee provisions required by this paragraph (2), shall be
deemed to incorporate such provisions into the policy by operation of
law.
(3) The board of managers, or the persons acting in such capacity
pursuant to Section 18.2 of this Act, shall have authority to designate
any corporation qualified to accept and execute trusts in this state to
act as agent or trustee for, or as successor trustee to, said board of
managers for the purpose of collecting and disbursing the proceeds of
such insurance in the manner provided by the declaration, the bylaws,
and this Act. Premiums for such insurance and other expenses in
connection therewith shall be common expenses.
(b) The board of managers shall have the authority and duty to
obtain comprehensive public liability insurance against claims and
liabilities arising in connection with the ownership, existence, use or
management of the property in amounts, if any, specified by the
condominium instruments or otherwise deemed sufficient in the judgment
of the board of managers, insuring the board of managers, the unit
owners' association, the management agent, and their respective
employees, agents and all persons acting as agents. The developer shall
be included as an additional insured in his capacity as unit owner and
board member. The unit owners shall be included as additional insureds
but only with respect to that portion of the premises not reserved for
their exclusive use. The insurance shall cover claims of one or more
insured parties against other insured parties. The insurance shall
contain a waiver of any rights to subrogation by the insuring company
against any of the above named insured persons. Premiums for such
insurance shall be common expenses.
(c) The board of managers shall notify insured persons concerning
the cancellation of insurance obtained pursuant to the terms of this
Section.
(d) Any insurer defending a claim against a condominium association
shall notify the association of the terms of the settlement before
settling the claim. The association shall not have power to veto such
settlement, unless otherwise provided by contract or statute.
(Source: P.A. 84-1431; 84-1464.)
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(765 ILCS 605/12.1)
Sec. 12.1. Risk pooling trusts.
(a) This Section shall be known and may be cited as the Condominium
and Common Interest Community Risk Pooling Trust Act.
(b) The boards of managers or boards of directors, as the case may
be, of two or more condominium associations or common interest community
associations, are authorized to establish, with the unit owners and the
condominium or common interest community associations as the
beneficiaries thereof, a trust fund for the purpose of providing
protection of the participating condominium and common interest
community associations against the risk of financial loss due to damage
to, destruction of or loss of property, or the imposition of legal
liability as required or authorized under this Act or the declaration of
the condominium or common interest community association. Such trust
fund shall initially assess unit owners an amount actuarially adequate
to establish such fund and shall assess such amounts as are required to
maintain such fund. Such amounts may be treated as assessments of the
condominium or common interest community association.
(c) The trust fund shall be established and amended only by a
written instrument which shall be filed with and approved by the
Director of Insurance prior to its becoming effective. The Director of
Insurance shall withhold approval of any instrument if it does not
comply with the provisions of this Section or any rule or regulation of
the Director of Insurance.
(d) No common interest community association shall be a beneficiary
of the trust fund unless it either shall be incorporated under the laws
of this State or shall have first procured a Certificate of Authority
from the Secretary of State.
(e) The trust fund is authorized to indemnify the condominium and
common interest community association beneficiaries thereof against the
risk of loss due to damage, destruction or loss to property or
imposition of legal liability as required or authorized under this Act
or the declaration of the condominium or common interest community
association. The trustee of the trust fund may determine and establish
contributions to the trust fund actuarially required to fund the
operations and carry out the purposes of the trust fund and may enter
into contracts in order to carry out the purposes for which the trust
fund was established, provided however, that any such contracts shall
not provide for compensation or payments in excess of that which is
reasonable in relation to the services actually performed thereunder.
(f) The trust fund may enter into written agreements with other
trust funds established under this Section whereby the risks assumed by
any such trust fund may be pooled and shared with such other trust
funds.
(g) The trustees of all trust funds established under this Act
shall be natural persons over the age of 18 who are residents of this
State.
(h) Every such trust fund shall have no fewer than 3 nor more than
30 trustees. No less than 2/3 of the trustees shall be officers,
directors, trustees or full time employees of a condominium or common
interest community association beneficiary of the trust fund.
(i) No trustee of the trust fund shall be paid a salary or receive
other compensation, except that the written trust instrument may provide
for reimbursement for actual expenses incurred on behalf of the trust
fund. No trustee or any employer or affiliate of any trustee of the
trust fund shall enter into any contract with the trust fund for, or
receive any monies or other compensation or thing of value whatsoever
from, the trust fund for services performed for or on behalf of such
trust fund, except as otherwise provided in this Section.
(j) The trustees shall serve pursuant to the terms of the written
trust instrument except that the written trust instrument shall set
forth the manner in which a trustee of a trust fund may be removed and
the manner in which vacancies among the trustees of the trust fund may
be filled.
(k) No trustee of the trust fund shall serve for more than 3
consecutive years unless he is reappointed in the manner provided for in
the written trust instrument.
(l) The trustees of the trust fund shall have the powers specified
in the written trust instrument which established the trust fund.
(m) Each trust fund shall by June 1 of each year file with the
Director of Insurance a full independently audited financial statement
as of December 31 of the preceding year, and by April 1 of each year a
report of the trustees of the trust fund detailing the operations of the
trust fund and including a list of all beneficiaries during the year and
a statement that each beneficiary was not ineligible except as provided
for in this Section. The truth and accuracy of the financial statement
and report shall be attested to by each trustee. The financial statement
shall include the opinion of an independent certified public accountant
on the financial condition of the trust fund for the most recent
calendar year and the results of its operations, changes in financial
position and changes in capital and surplus for the year then ended in
conformity with accounting practices permitted or prescribed by the
Illinois Department of Insurance.
(n) A beneficiary is ineligible if he or she ceases to be a unit
owner of a condominium or common interest community association, except
where liability of such beneficiary was incurred at the time he or she
was a unit owner.
(o) No beneficiary shall have any cause of action against any other
beneficiary arising solely out of the insolvency or inability of the
trust fund to meet its obligations, unless such other beneficiary is a
trustee of such trust fund and has breached a fiduciary duty in
connection with such trust fund. This subsection shall not preclude the
assessment and collection of any payments to the trust fund to correct
such insolvency or inability of the trust fund to meet its obligations.
(p) No trust fund established under this subsection (d) shall grant
any power to the trustees of the trust fund which is inconsistent with
this Section or any other law of this State.
(q) Every trust fund established hereunder shall include in the
written trust instrument the basis upon which payments are made to and
from the trust fund.
(r) Trust funds established under this Section and all persons
interested therein or dealing therewith shall be subject to the
provisions of Sections 133, 144, 144.1, 149, 401, 401.1, 402, 403, 403A,
412, and all of the provisions of Articles VII, VIII, VIII 1/2, XII 1/2,
and XIII of the Illinois Insurance Code. Except as otherwise provided in
this Section, trust funds established under and which fully comply with
this Section shall not be subject to any other provision of the Illinois
Insurance Code.
(s) The Director of Insurance shall have with respect to trust
funds established under this Section the powers of examination conferred
upon him relative to insurance companies by Sections 132 through 132.7
of the Illinois Insurance Code. The cost of any such examination shall
be paid by the trust fund examined.
(t) The Director of Insurance shall charge, collect and give proper
acquittances for the payment of the following fees and charges:
(i) For filing trust instruments, amendments thereto and
financial statement and report of the trustees, $25.
(ii) For copies of papers or records per page, $1.
(iii) For certificate to copy of paper, $5.
(iv) For filing an application for the licensing of a
condominium risk pooling trust, $500.
(u) This Section shall apply regardless of any contrary provisions
of any instrument.
(v) Trust funds established under and which fully comply with this
Section shall not be considered member insurance companies or to be in
the business of insurance nor shall the provision of Article XXXIV of
the Illinois Insurance Code apply to any such trust fund established
under this Section.
(w) The provisions of the Administrative Review Law shall apply to
and govern all proceedings for the judicial review of final
administrative decisions under this Section.
(Source: P.A. 89-97, eff. 7-7-95.)
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(765 ILCS 605/13)
Sec. 13. Application of insurance proceeds to reconstruction.
In case of fire or any other disaster the insurance proceeds, if
sufficient to reconstruct the building, shall be applied to such
reconstruction. Reconstruction of the building as used in this and
succeeding Section 14 of this Act, means restoring the building to
substantially the same condition in which it existed prior to the fire
or other disaster, with each unit and the common elements having the
same vertical and horizontal boundaries as before.
(Source: Laws 1963, p. 1120.)
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(765 ILCS 605/14)
Sec. 14. Disposition of property where insurance proceeds are
insufficient for reconstruction.
(1) In case of fire or other disaster,
if the insurance proceeds are insufficient to reconstruct the building
and the unit owners and all other parties in interest do not voluntarily
make provision for reconstruction of the building within 180 days from
the date of damage or destruction, the board of managers may record a
notice setting forth such facts and upon the recording of such notice:
(a) The property shall be deemed to be owned in common by the unit
owners;
(b) The undivided interest in the property owned in common which
shall appertain to each unit owner shall be the percentage of undivided
interest previously owned by such owner in the common elements;
(c) Any liens affecting any of the units shall be deemed to be
transferred in accordance with the existing priorities to the undivided
interest of the unit owner in the property as provided herein; and
(d) The property shall be subject to an action for partition at the
suit of any unit owner, in which event the net proceeds of sale,
together with the net proceeds of the insurance on the property, if any,
shall be considered as one fund and shall be divided among all the unit
owners in a percentage equal to the percentage of undivided interest
owned by each owner in the property, after first paying out of the
respective shares of the unit owners, to the extent sufficient for the
purpose, all liens on the undivided interest in the property owned by
each unit owner.
(2) In the case of fire or other disaster in which fewer than 1/2
of the units are rendered uninhabitable: the condominium instruments may
provide for the reconstruction of the building or other portion of the
property, if the insurance proceeds are insufficient to reconstruct,
upon the affirmative vote of not fewer than 3/4 of the owners voting at
a meeting called for that purpose. The meeting shall be held within 30
days following the final adjustment of insurance claims, if any.
Otherwise, such meeting shall be held within 90 days of the occurrence.
At such meeting the board of managers, or its representative, shall
present to the members present an estimate of the cost of repair or
reconstruction, and the estimated amount of necessary assessments
against each unit owner.
(3) In the case of fire or other disaster, the condominium
instruments may provide for the withdrawal of any portion of the
property if the insurance proceeds are insufficient to reconstruct the
portion of the property affected. Upon the withdrawal of any unit or
portion thereof, the percentage of interest in the common elements
appurtenant to such unit or portion thereof shall be reallocated among
the remaining units on the basis of the percentage of interest of each
remaining unit. If only a portion of a unit is withdrawn, the
percentage of interest appurtenant to that unit shall be reduced
accordingly, upon the basis of diminution in market value of the unit,
as determined by the board of managers. The payment of just
compensation, or the allocation of any insurance, or other proceeds to
any withdrawing or remaining unit owner shall be on an equitable basis,
which need not be a unit's percentage interest. Any insurance or other
proceeds available in connection with the withdrawal of any portion of
the common elements, not necessarily including the limited common
elements, shall be allocated on the basis of each unit owner's
percentage interest therein. The declaration may provide that proceeds
available from the withdrawal of any limited common element will be
distributed in accordance with the interests of those entitled to their
use. The condominium instruments shall provide for the cessation of
responsibility for the payment of assessments for any unit or portion
thereof withdrawn from the condominium.
(Source: P.A. 80-1117.)
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(765 ILCS 605/14.1)
Sec. 14.1. Disposition or removal of any portion of the property.
(a) The condominium instruments may provide for the withdrawal of
any portion of the property in connection with eminent domain
proceedings in compliance with the provisions of this Act. Upon the
withdrawal of any unit or portion thereof, the percentage of interest in
the common elements appurtenant to such unit or portion thereof shall be
reallocated among the remaining units on the basis of the percentage of
interest of each remaining unit. If only a portion of a unit is
withdrawn, the percentage of interest appurtenant to that unit shall be
reduced accordingly, upon the basis of diminution in market value of the
unit, as determined by the board of managers. The allocation of any
condemnation award or other proceeds to any withdrawing or remaining
unit owner shall be on an equitable basis, which need not be a unit's
percentage interest. Any condemnation award or other proceeds available
in connection with the withdrawal of any portion of the common elements,
not necessarily including the limited common elements, shall be
allocated on the basis of each unit owner's percentage interest therein.
The declaration may provide that proceeds available from the withdrawal
of any limited common element will be distributed in accordance with the
interests of those entitled to their use. The condominium instruments
shall provide for the cessation of responsibility for the payment of
assessments for any unit or portion thereof withdrawn from the
condominium. In the event that the unit owners' association is named as
defendant in an eminent domain proceeding on behalf of all unit owners,
then the payment of the proceeds of the eminent domain proceeding
attributable to the taking or damaging of the common element shall be
according to this Section unless the condominium instrument or
declaration of a common interest community expressly provides for
different procedures. This Section shall also apply to eminent domain
proceedings in which the unit owners' association of a common interest
community is named as a defendant on behalf of all unit owners.
(b) Notwithstanding anything to the contrary contained in this
Section, in a leasehold condominium, any allocation of any condemnation
award or other proceeds available in connection with the withdrawal of
any portion of the property shall include an equitable allocation to the
lessor. The allocation shall take into account any provisions of the
lease described in item (x) of Section 2 of this Act concerning such
allocations.
(Source: P.A. 89-89, eff. 6-30-95.)
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(765 ILCS 605/14.2)
Sec. 14.2. Street and utilities dedication.
Unless the condominium
instrument expressly provides for a greater percentage or different
procedures a two-thirds majority of the unit owners at a meeting of unit
owners duly called for such purpose may elect to dedicate a portion of
the common elements to a public body for use as, or in connection with,
a street or utility. Where such a dedication is made, nothing in this
Act or any other law shall be construed to require that the real
property taxes of every unit of the condominium must be paid prior to
recordation of the dedication.
(Source: P.A. 83-833.)
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(765 ILCS 605/14.3)
Sec. 14.3. Granting of easement for laying of cable television
cable.
Unless the condominium instrument expressly provides for a
greater percentage or different procedures a majority of more than 50%
of the unit owners at a meeting of unit owners duly called for such
purpose may authorize the granting of an easement for the laying of
cable television cable. The grant of such easement shall be according
to the terms and conditions of the local ordinance providing for cable
television in the municipality.
(Source: P.A. 83-833.)
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(765 ILCS 605/14.4)
Sec. 14.4. Granting of easement to a governmental body for
protection against water damage or erosion.
Unless the condominium
instrument expressly provides for a greater percentage or different
procedures, a majority of more than 50% of the unit owners at a meeting
of unit owners duly called for such purpose may authorize the granting
of an easement to a governmental body for construction, maintenance or
repair of a project for protection against water damage or erosion.
(Source: P.A. 84-1423.)
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(765 ILCS 605/15)
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 three units,
and not less than 75% where the property contains 4 or more units may,
by affirmative vote at a meeting of unit owners duly called for such
purpose, elect to sell the property. Such action shall be binding upon
all unit owners, and it shall thereupon become the duty of every unit
owner to execute and deliver such instruments and to perform all acts as
in manner and form may be necessary to effect such sale, provided,
however, that any unit owner who did not vote in favor of such action
and who has filed written objection thereto with the manager or board of
managers within 20 days after the date of the meeting at which such sale
was approved shall be entitled to receive from the proceeds of such sale
an amount equivalent to the value of his interest, as determined by a
fair appraisal, less the amount of any unpaid assessments or charges due
and owing from such unit owner.
(b) If there is a disagreement as to the value of the interest of a
unit owner who did not vote in favor of the sale of the property, that
unit owner shall have a right to designate an expert in appraisal or
property valuation to represent him, in which case, the prospective
purchaser of the property shall designate an expert in appraisal or
property valuation to represent him, and both of these experts shall
mutually designate a third expert in appraisal or property valuation.
The 3 experts shall constitute a panel to determine by vote of at least
2 of the members of the panel, the value of that unit owner's interest
in the property.
(Source: P.A. 86-1156.)
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(765 ILCS 605/16)
Sec. 16. Removal from provisions of this Act.
All of the unit owners may remove the property from the provisions
of this Act by an instrument to that effect, duly recorded, provided
that the holders of all liens affecting any of the units consent thereto
or agree, in either case by instruments duly recorded, that their liens
be transferred to the undivided interest of the unit owner. Upon such
removal the property shall be deemed to be owned in common by all the
owners. The undivided interest in the property owned in common which
shall appertain to each owner shall be the percentage of undivided
interest previously owned by such owner in the common elements.
(Source: Laws 1963, p. 1120.)
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(765 ILCS 605/17)
Sec. 17. Amendments to the declaration or bylaws.
(a) The
administration of every property shall be governed by bylaws, which may
either be embodied in the declaration or in a separate instrument, a
true copy of which shall be appended to and recorded with the
declaration. No modification or amendment of the declaration or bylaws
shall be valid unless the same is set forth in an amendment thereof and
such amendment is duly recorded. An amendment of the declaration or
bylaws shall be deemed effective upon recordation unless the amendment
sets forth a different effective date.
(b) Unless otherwise provided by this Act, amendments to
condominium instruments authorized to be recorded shall be executed and
recorded by the president of the association or such other officer
authorized by the board of managers.
(Source: P.A. 83-833.)
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(765 ILCS 605/18)
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 30 days prior
to the adoption thereof by the board of managers, a copy of the
proposed annual budget together with an indication of which portions
are intended for reserves, capital expenditures or repairs or
payment of real estate taxes;
(7) that the board of managers shall annually supply to all
unit owners an itemized accounting of the common expenses for the
preceding year actually incurred or paid, together with an
indication of which portions were for reserves, capital expenditures
or repairs or payment of real estate taxes and with a tabulation of
the amounts collected pursuant to the budget or assessment, and
showing the net excess or deficit of income over expenditures plus
reserves;
(8) (i) that each unit owner shall receive notice, in the same
manner as is provided in this Act for membership meetings, of any
meeting of the board of managers concerning the adoption of the
proposed annual budget and regular assessments pursuant thereto or
to adopt a separate (special) assessment, (ii) that except as
provided in subsection (iv) below, if an adopted budget or any
separate assessment adopted by the board would result in the sum of
all regular and separate assessments payable in the current fiscal
year exceeding 115% of the sum of all regular and separate
assessments payable during the preceding fiscal year, the board of
managers, upon written petition by unit owners with 20 percent of
the votes of the association delivered to the board within 14 days
of the board action, shall call a meeting of the unit owners within
30 days of the date of delivery of the petition to consider the
budget or separate assessment; unless a majority of the total votes
of the unit owners are cast at the meeting to reject the budget or
separate assessment, it is ratified, (iii) that any common expense
not set forth in the budget or any increase in assessments over the
amount adopted in the budget shall be separately assessed against
all unit owners, (iv) that separate assessments for expenditures
relating to emergencies or mandated by law may be adopted by the
board of managers without being subject to unit owner approval or
the provisions of item (ii) above or item (v) below. As used
herein, "emergency" means an immediate danger to the structural
integrity of the common elements or to the life, health, safety or
property of the unit owners, (v) that assessments for additions and
alterations to the common elements or to association-owned property
not included in the adopted annual budget, shall be separately
assessed and are subject to approval of two-thirds of the total
votes of all unit owners, (vi) that the board of managers may adopt
separate assessments payable over more than one fiscal year. With
respect to multi-year assessments not governed by items (iv) and
(v), the entire amount of the multi-year assessment shall be deemed
considered and authorized in the first fiscal year in which the
assessment is approved;
(9) that meetings of the board of managers shall be open to
any unit owner, except for the portion of any meeting held (i) to
discuss litigation when an action against or on behalf of the
particular association has been filed and is pending in a court or
administrative tribunal, or when the board of managers finds that
such an action is probable or imminent, (ii) to consider information
regarding appointment, employment or dismissal of an employee, or
(iii) to discuss violations of rules and regulations of the
association or a unit owner's unpaid share of common expenses; that
any vote on these matters shall be taken at a meeting or portion
thereof open to any unit owner; that any unit owner may record the
proceedings at meetings or portions thereof required to be open by
this Act by tape, film or other means; that the board may prescribe
reasonable rules and regulations to govern the right to make such
recordings, that notice of such meetings shall be mailed or
delivered at least 48 hours prior thereto, unless a written waiver
of such notice is signed by the person or persons entitled to such
notice pursuant to the declaration, bylaws, other condominium
instrument, or provision of law other than this subsection before
the meeting is convened, and that copies of notices of meetings of
the board of managers shall be posted in entranceways, elevators, or
other conspicuous places in the condominium at least 48 hours prior
to the meeting of the board of managers except where there is no
common entranceway for 7 or more units, the board of managers may
designate one or more locations in the proximity of these units
where the notices of meetings shall be posted;
(10) that the board shall meet at least 4 times annually;
(11) that no member of the board or officer shall be elected
for a term of more than 2 years, but that officers and board members
may succeed themselves;
(12) the designation of an officer to mail and receive all
notices and execute amendments to condominium instruments as
provided for in this Act and in the condominium instruments;
(13) the method of filling vacancies on the board which shall
include authority for the remaining members of the board to fill the
vacancy by two-thirds vote until the next annual meeting of unit
owners or for a period terminating no later than 30 days following
the filing of a petition signed by unit owners holding 20% of the
votes of the association requesting a meeting of the unit owners to
fill the vacancy for the balance of the term, and that a meeting of
the unit owners shall be called for purposes of filling a vacancy on
the board no later than 30 days following the filing of a petition
signed by unit owners holding 20% of the votes of the association
requesting such a meeting, and the method of filling vacancies among
the officers that shall include the authority for the members of the
board to fill the vacancy for the unexpired portion of the term;
(14) what percentage of the board of managers, if other than a
majority, shall constitute a quorum;
(15) provisions concerning notice of board meetings to members
of the board;
(16) the board of managers may not enter into a contract with
a current board member or with a corporation or partnership in which
a board member or a member of the board member's immediate family
has 25% or more interest, unless notice of intent to enter the
contract is given to unit owners within 20 days after a decision is
made to enter into the contract and the unit owners are afforded an
opportunity by filing a petition, signed by 20% of the unit owners,
for an election to approve or disapprove the contract; such petition
shall be filed within 20 days after such notice and such election
shall be held within 30 days after filing the petition; for purposes
of this subsection, a board member's immediate family means the
board member's spouse, parents, and children;
(17) that the board of managers may disseminate to unit owners
biographical and background information about candidates for
election to the board if (i) reasonable efforts to identify all
candidates are made and all candidates are given an opportunity to
include biographical and background information in the information
to be disseminated; and (ii) the board does not express a preference
in favor of any candidate;
(18) any proxy distributed for board elections by the board of
managers gives unit owners the opportunity to designate any person
as the proxy holder, and gives the unit owner the opportunity to
express a preference for any of the known candidates for the board
or to write in a name;
(19) that special meetings of the board of managers can be
called by the president or 25% of the members of the board; and
(20) that the board of managers may establish and maintain a
system of master metering of public utility services and collect
payments in connection therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
(b) (1) What percentage of the unit owners, if other than 20%,
shall constitute a quorum provided that, for condominiums with 20 or
more units, the percentage of unit owners constituting a quorum
shall be 20% unless the unit owners holding a majority of the
percentage interest in the association provide for a higher
percentage;
(2) that the association shall have one class of membership;
(3) that the members shall hold an annual meeting, one of the
purposes of which shall be to elect members of the board of
managers;
(4) the method of calling meetings of the unit owners;
(5) that special meetings of the members can be called by the
president, board of managers, or by 20% of unit owners;
(6) that written notice of any membership meeting shall be
mailed or delivered giving members no less than 10 and no more than
30 days notice of the time, place and purpose of such meeting;
(7) that voting shall be on a percentage basis, and that the
percentage vote to which each unit is entitled is the percentage
interest of the undivided ownership of the common elements
appurtenant thereto, provided that the bylaws may provide for
approval by unit owners in connection with matters where the
requisite approval on a percentage basis is not specified in this
Act, on the basis of one vote per unit;
(8) that, where there is more than one owner of a unit, if
only one of the multiple owners is present at a meeting of the
association, he is entitled to cast all the votes allocated to that
unit, if more than one of the multiple owners are present, the votes
allocated to that unit may be cast only in accordance with the
agreement of a majority in interest of the multiple owners, unless
the declaration expressly provides otherwise, that there is majority
agreement if any one of the multiple owners cast the votes allocated
to that unit without protest being made promptly to the person
presiding over the meeting by any of the other owners of the unit;
(9) that unless the Articles of Incorporation or the bylaws
otherwise provide, 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 shall be invalid after 11 months from the date
of its execution, unless otherwise provided in the proxy, and that
every proxy must bear the date of execution;
(10) that the association may, upon adoption of the
appropriate rules by the board of managers, conduct elections by
secret ballot whereby the voting ballot is marked only with the
percentage interest for the unit and the vote itself, provided that
the board further adopt rules to verify the status of the unit owner
issuing a proxy or casting a ballot; and further, that a candidate
for election to the board of managers or such candidate's
representative shall have the right to be present at the counting of
ballots at such election;
(11) that in the event of a resale of a condominium unit the
purchaser of a unit from a seller other than the developer pursuant
to an installment contract for purchase shall during such times as
he or she resides in the unit be counted toward a quorum for
purposes of election of members of the board of managers at any
meeting of the unit owners called for purposes of electing members
of the board, shall have the right to vote for the election of
members of the board of managers and to be elected to and serve on
the board of managers unless the seller expressly retains in writing
any or all of such rights. In no event may the seller and purchaser
both be counted toward a quorum, be permitted to vote for a
particular office or be elected and serve on the board.
Satisfactory evidence of the installment contact shall be made
available to the association or its agents. For purposes of this
subsection, "installment contact" shall have the same meaning as set
forth in Section 1 (e) of "An Act relating to installment contracts
to sell dwelling structures", approved August 11, 1967, as amended;
(12) the method by which matters subject to the approval of
unit owners set forth in this Act, or in the condominium
instruments, will be submitted to the unit owners at special
membership meetings called for such purposes; and
(13) that matters subject to the affirmative vote of not less
than 2/3 of the votes of unit owners at a meeting duly called for
that purpose, shall include, but not be limited to:
(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 of managers and of the unit
owners.
(d) Election of a secretary from among the board of managers, who
shall keep the minutes of all meetings of the board of managers and of
the unit owners and who shall, in general, perform all the duties
incident to the office of secretary.
(e) Election of a treasurer from among the board of managers, who
shall keep the financial records and books of account.
(f) Maintenance, repair and replacement of the common elements and
payments therefor, including the method of approving payment vouchers.
(g) An association with 30 or more units shall obtain and maintain
fidelity insurance covering persons who control or disburse funds of the
association for the maximum amount of coverage available to protect
funds in the custody or control of the association plus the association
reserve fund. All management companies which are responsible for the
funds held or administered by the association shall maintain and furnish
to the association a fidelity bond for the maximum amount of coverage
available to protect funds in the custody of the management company at
any time. The association shall bear the cost of the fidelity insurance
and fidelity bond, unless otherwise provided by contract between the
association and a management company. The association shall be the
direct obligee of any such fidelity bond. A management company holding
reserve funds of an association shall at all times maintain a separate
account for each association, provided, however, that for investment
purposes, the Board of Managers of an association may authorize a
management company to maintain the association's reserve funds in a
single interest bearing account with similar funds of other
associations. The management company shall at all times maintain
records identifying all moneys of each association in such investment
account. The management company may hold all operating funds of
associations which it manages in a single operating account but shall at
all times maintain records identifying all moneys of each association in
such operating account. Such operating and reserve funds held by the
management company for the association shall not be subject to
attachment by any creditor of the management company.
For the purpose of this subsection a management company shall be
defined as a person, partnership, corporation, or other legal entity
entitled to transact business on behalf of others, acting on behalf of
or as an agent for a unit owner, unit owners or association of unit
owners for the purpose of carrying out the duties, responsibilities, and
other obligations necessary for the day to day operation and management
of any property subject to this Act. For purposes of this subsection,
the term "fiduciary insurance coverage" shall be defined as both a
fidelity bond and directors and officers liability coverage, the
fidelity bond in the full amount of association funds and association
reserves that will be in the custody of the association, and the
directors and officers liability coverage at a level as shall be
determined to be reasonable by the board of managers, if not otherwise
established by the declaration or by laws.
Until one year after the effective date of this amendatory Act of
1985, if a condominium association has reserves plus assessments in
excess of $250,000 and cannot reasonably obtain 100% fidelity bond
coverage for such amount, then it must obtain a fidelity bond coverage
of $250,000.
(h) Method of estimating the amount of the annual budget, and the
manner of assessing and collecting from the unit owners their respective
shares of such estimated expenses, and of any other expenses lawfully
agreed upon.
(i) Th |
