SB 3527

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Full Text of SB3527
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	SB3527 - 104th General Assembly
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			Senate Amendment 001
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		SB3527 Enrolled		LRB104 18988 JRC 32433 b
1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Common Interest Community Association Act
5is amended by changing Sections 1-35 and 1-45 as follows:
6    (765 ILCS 160/1-35)
7    Sec. 1-35. Member powers, duties, and obligations.
8    (a) The provisions of this Act, the declaration, bylaws,
9other community instruments, and rules and regulations that
10relate to the use of an individual unit or the common areas
11shall be applicable to any person leasing a unit and shall be
12deemed to be incorporated in any lease executed or renewed on
13or after the effective date of this Act. Unless otherwise
14provided in the community instruments, with regard to any
15lease entered into subsequent to the effective date of this
16Act, the unit owner leasing the unit shall deliver a copy of
17the signed lease to the association or if the lease is oral, a
18memorandum of the lease, not later than the date of occupancy
19or 10 days after the lease is signed, whichever occurs first.
20    (b) If there are multiple owners of a single unit, only one
21of the multiple owners shall be eligible to serve as a member
22of the board at any one time, unless the unit owner owns
23another unit independently.
		SB3527 Enrolled	- 2 -	LRB104 18988 JRC 32433 b
1    (c) Two-thirds of the membership may remove a board member
2as a director at a duly called special meeting.
3    (d) In the event of any resale of a unit in a common
4interest community association by a member or unit owner other
5than the developer, the board shall make available for
6inspection to the prospective purchaser, upon demand, the
7following:
8        (1) A copy of the declaration, other instruments, and
9    any rules and regulations.
10        (2) A statement of any liens, including a statement of
11    the account of the unit setting forth the amounts of
12    unpaid assessments and other charges due and owing.
13        (3) A statement of any capital expenditures
14    anticipated by the association within the current or
15    succeeding 2 fiscal years.
16        (4) A statement of the status and amount of any
17    reserve or replacement fund and any other fund
18    specifically designated for association projects.
19        (5) A copy of the statement of financial condition of
20    the association for the last fiscal year for which such a
21    statement is available.
22        (6) A statement of the status of any pending suits or
23    judgments in which the association is a party.
24        (7) A statement setting forth what insurance coverage
25    is provided for all members or unit owners by the
26    association for common properties.
		SB3527 Enrolled	- 3 -	LRB104 18988 JRC 32433 b
1        (8) A copy of the collection policy adopted under 
2    subsection (j) of Section 1-45.
3    The principal officer of the board or such other officer
4as is specifically designated shall furnish the above
5information within 30 days after receiving a written request
6for such information.
7    A reasonable fee covering the direct out-of-pocket cost of
8copying and providing such information may be charged by the
9association or the board to the unit seller for providing the
10information.
11(Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12;
1298-842, eff. 1-1-15.)
13    (765 ILCS 160/1-45)
14    Sec. 1-45. Finances.
15    (a) Each member shall receive through a prescribed
16delivery method, at least 30 days but not more than 60 days
17prior to the adoption thereof by the board, a copy of the
18proposed annual budget together with an indication of which
19portions are intended for reserves, capital expenditures or
20repairs or payment of real estate taxes.
21    (b) The board shall provide all members with a reasonably
22detailed summary of the receipts, common expenses, and
23reserves for the preceding budget year. The board shall (i)
24make available for review to all members an itemized
25accounting of the common expenses for the preceding year
		SB3527 Enrolled	- 4 -	LRB104 18988 JRC 32433 b
1actually incurred or paid, together with an indication of
2which portions were for reserves, capital expenditures or
3repairs or payment of real estate taxes and with a tabulation
4of the amounts collected pursuant to the budget or assessment,
5and showing the net excess or deficit of income over
6expenditures plus reserves or (ii) provide a consolidated
7annual independent audit report of the financial status of all
8fund accounts within the association.
9    (c) If an adopted budget or any separate assessment
10adopted by the board would result in the sum of all regular and
11separate assessments payable in the current fiscal year
12exceeding 115% of the sum of all regular and separate
13assessments payable during the preceding fiscal year, the
14common interest community association, upon written petition
15by members with 20% of the votes of the association delivered
16to the board within 14 days of the board action, shall call a
17meeting of the members within 30 days of the date of delivery
18of the petition to consider the budget or separate assessment;
19unless a majority of the total votes of the members are cast at
20the meeting to reject the budget or separate assessment, it
21shall be deemed ratified.
22    (d) If total common expenses exceed the total amount of
23the approved and adopted budget, the common interest community
24association shall disclose this variance to all its members
25and specifically identify the subsequent assessments needed to
26offset this variance in future budgets.
		SB3527 Enrolled	- 5 -	LRB104 18988 JRC 32433 b
1    (e) Separate assessments for expenditures relating to
2emergencies or mandated by law may be adopted by the board
3without being subject to member approval or the provisions of
4subsection (c) or (f) of this Section. As used herein,
5"emergency" means a danger to or a compromise of the
6structural integrity of the common areas or any of the common
7facilities of the common interest community. "Emergency" also
8includes a danger to the life, health or safety of the
9membership.
10    (f) Assessments for additions and alterations to the
11common areas or to association-owned property not included in
12the adopted annual budget, shall be separately assessed and
13are subject to approval of a simple majority of the total
14members at a meeting called for that purpose.
15    (g) The board may adopt separate assessments payable over
16more than one fiscal year. With respect to multi-year
17assessments not governed by subsections (e) and (f) of this
18Section, the entire amount of the multi-year assessment shall
19be deemed considered and authorized in the first fiscal year
20in which the assessment is approved.
21    (h) The board of a common interest community association
22shall have the authority to establish and maintain a system of
23master metering of public utility services to collect payments
24in conjunction therewith, subject to the requirements of the
25Tenant Utility Payment Disclosure Act.
26    (i) An association subject to this Act that consists of
		SB3527 Enrolled	- 6 -	LRB104 18988 JRC 32433 b
1100 or more units shall use generally accepted accounting
2principles in fulfilling any accounting obligations under this
3Act.
4    (j) To promote responsible governance, the board must 
5adopt policies and procedures concerning the collection of 
6unpaid assessments.
7        (1) Notwithstanding any provision in the community 
8    instruments to the contrary, the association or a holder 
9    or assignee of the association's debt, whether the holder 
10    or assignee of the association's debt is an entity or a 
11    natural person, shall not take legal action to collect 
12    common expenses unless the association or a holder or 
13    assignee of the association's debt has adopted, and 
14    follows, a written policy governing the collection of 
15    unpaid assessments. The policy must, at a minimum, 
16    specify:
17            (A) the date on which common expenses must be paid 
18        to the entity and when an assessment is considered 
19        delinquent;
20            (B) any late fees and interest the entity is 
21        entitled to impose on a delinquent unit owner's 
22        account;
23            (C) any returned-check charges the entity is 
24        entitled to impose;
25            (D) the circumstances, if any, under which a unit 
26        owner is entitled to enter into a payment plan with the 
		SB3527 Enrolled	- 7 -	LRB104 18988 JRC 32433 b
1        entity and the minimum terms of the payment plan;
2            (E) the amount or duration of time before the 
3        entity refers a delinquent account to an attorney for 
4        legal action;
5            (F) the method by which payments may be applied on 
6        the delinquent account of a unit owner; and
7            (G) the legal remedies available to the entity to 
8        collect on a unit owner's delinquent account pursuant 
9        to the governing documents of the entity and Illinois 
10        law.
11        (2) As used in this subsection, "entity" means an 
12    association or a holder or assignee of the association's 
13    debt, whether the holder or assignee of the association's 
14    debt is an entity or a natural person.
15(Source: P.A. 100-292, eff. 1-1-18.)
16    Section 10. The Condominium Property Act is amended by
17changing Sections 18.4 and 22.1 as follows:
18    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
19    Sec. 18.4. Powers and duties of board of managers. The
20board of managers shall exercise for the association all
21powers, duties and authority vested in the association by law
22or the condominium instruments except for such powers, duties
23and authority reserved by law to the members of the
24association. The powers and duties of the board of managers
		SB3527 Enrolled	- 8 -	LRB104 18988 JRC 32433 b
1shall include, but shall not be limited to, the following:
2        (a) To provide for the operation, care, upkeep,
3    maintenance, replacement and improvement of the common
4    elements. Nothing in this subsection (a) shall be deemed
5    to invalidate any provision in a condominium instrument
6    placing limits on expenditures for the common elements,
7    provided, that such limits shall not be applicable to
8    expenditures for repair, replacement, or restoration of
9    existing portions of the common elements. The term
10    "repair, replacement or restoration" means expenditures to
11    deteriorated or damaged portions of the property related
12    to the existing decorating, facilities, or structural or
13    mechanical components, interior or exterior surfaces, or
14    energy systems and equipment with the functional
15    equivalent of the original portions of such areas.
16    Replacement of the common elements may result in an
17    improvement over the original quality of such elements or
18    facilities; provided that, unless the improvement is
19    mandated by law or is an emergency as defined in item (iv)
20    of subparagraph (8) of paragraph (a) of Section 18, if the
21    improvement results in a proposed expenditure exceeding 5%
22    of the annual budget, the board of managers, upon written
23    petition by unit owners with 20% of the votes of the
24    association delivered to the board within 21 days of the
25    board action to approve the expenditure, shall call a
26    meeting of the unit owners within 30 days of the date of
		SB3527 Enrolled	- 9 -	LRB104 18988 JRC 32433 b
1    delivery of the petition to consider the expenditure.
2    Unless a majority of the total votes of the unit owners are
3    cast at the meeting to reject the expenditure, it is
4    ratified.
5        (b) To prepare, adopt and distribute the annual budget
6    for the property.
7        (c) To levy and expend assessments.
8        (d) To collect assessments from unit owners.
9        (e) To provide for the employment and dismissal of the
10    personnel necessary or advisable for the maintenance and
11    operation of the common elements.
12        (f) To obtain adequate and appropriate kinds of
13    insurance.
14        (g) To own, convey, encumber, lease, and otherwise
15    deal with units conveyed to or purchased by it.
16        (h) To adopt and amend rules and regulations covering
17    the details of the operation and use of the property,
18    after a meeting of the unit owners called for the specific
19    purpose of discussing the proposed rules and regulations.
20    Notice of the meeting shall contain the full text of the
21    proposed rules and regulations, and the meeting shall
22    conform to the requirements of Section 18(b) of this Act,
23    except that no quorum is required at the meeting of the
24    unit owners unless the declaration, bylaws or other
25    condominium instrument expressly provides to the contrary.
26    However, no rule or regulation may impair any rights
		SB3527 Enrolled	- 10 -	LRB104 18988 JRC 32433 b
1    guaranteed by the First Amendment to the Constitution of
2    the United States or Section 4 of Article I of the Illinois
3    Constitution including, but not limited to, the free
4    exercise of religion, nor may any rules or regulations
5    conflict with the provisions of this Act or the
6    condominium instruments. No rule or regulation shall
7    prohibit any reasonable accommodation for religious
8    practices, including the attachment of religiously
9    mandated objects to the front-door area of a condominium
10    unit.
11        (i) To keep detailed, accurate records of the receipts
12    and expenditures affecting the use and operation of the
13    property.
14        (j) To have access to each unit from time to time as
15    may be necessary for the maintenance, repair or
16    replacement of any common elements or for making emergency
17    repairs necessary to prevent damage to the common elements
18    or to other units.
19        (k) To pay real property taxes, special assessments,
20    and any other special taxes or charges of the State of
21    Illinois or of any political subdivision thereof, or other
22    lawful taxing or assessing body, which are authorized by
23    law to be assessed and levied upon the real property of the
24    condominium.
25        (l) To impose charges for late payment of a unit
26    owner's proportionate share of the common expenses, or any
		SB3527 Enrolled	- 11 -	LRB104 18988 JRC 32433 b
1    other expenses lawfully agreed upon, and after notice and
2    an opportunity to be heard, to levy reasonable fines for
3    violation of the declaration, by-laws, and rules and
4    regulations of the association.
5        (m) By a majority vote of the entire board of
6    managers, to assign the right of the association to future
7    income from common expenses or other sources, and to
8    mortgage or pledge substantially all of the remaining
9    assets of the association.
10        (n) To record the dedication of a portion of the
11    common elements to a public body for use as, or in
12    connection with, a street or utility where authorized by
13    the unit owners under the provisions of Section 14.2.
14        (o) To record the granting of an easement for the
15    laying of cable television or high speed Internet cable
16    where authorized by the unit owners under the provisions
17    of Section 14.3; to obtain, if available and determined by
18    the board to be in the best interests of the association,
19    cable television or bulk high speed Internet service for
20    all of the units of the condominium on a bulk identical
21    service and equal cost per unit basis; and to assess and
22    recover the expense as a common expense and, if so
23    determined by the board, to assess each and every unit on
24    the same equal cost per unit basis.
25        (p) To seek relief on behalf of all unit owners when
26    authorized pursuant to subsection (c) of Section 10 from
		SB3527 Enrolled	- 12 -	LRB104 18988 JRC 32433 b
1    or in connection with the assessment or levying of real
2    property taxes, special assessments, and any other special
3    taxes or charges of the State of Illinois or of any
4    political subdivision thereof or of any lawful taxing or
5    assessing body.
6        (q) To reasonably accommodate the needs of a unit
7    owner who is a person with a disability as required by the
8    federal Civil Rights Act of 1968, the Human Rights Act and
9    any applicable local ordinances in the exercise of its
10    powers with respect to the use of common elements or
11    approval of modifications in an individual unit.
12        (r) To accept service of a notice of claim for
13    purposes of the Mechanics Lien Act on behalf of each
14    respective member of the Unit Owners' Association with
15    respect to improvements performed pursuant to any contract
16    entered into by the Board of Managers or any contract
17    entered into prior to the recording of the condominium
18    declaration pursuant to this Act, for a property
19    containing more than 8 units, and to distribute the notice
20    to the unit owners within 7 days of the acceptance of the
21    service by the Board of Managers. The service shall be
22    effective as if each individual unit owner had been served
23    individually with notice.
24        (s) To adopt and amend rules and regulations (l)
25    authorizing electronic delivery of notices and other
26    communications required or contemplated by this Act to
		SB3527 Enrolled	- 13 -	LRB104 18988 JRC 32433 b
1    each unit owner who provides the association with written
2    authorization for electronic delivery and an electronic
3    address to which such communications are to be
4    electronically transmitted; and (2) authorizing each unit
5    owner to designate an electronic address or a U.S. Postal
6    Service address, or both, as the unit owner's address on
7    any list of members or unit owners which an association is
8    required to provide upon request pursuant to any provision
9    of this Act or any condominium instrument.
10        (t) To promote responsible governance, the board must 
11    adopt policies and procedures concerning the collection of 
12    unpaid assessments.
13            (1) Notwithstanding any provision of the 
14        condominium instruments and adopted rules and 
15        regulations to the contrary, the association or a 
16        holder or assignee of the association's debt, whether 
17        the holder or assignee of the association's debt is an 
18        entity or a natural person, shall not take legal 
19        action to collect common expenses unless the 
20        association or a holder or assignee of the 
21        association's debt has adopted, and follows, a written 
22        policy governing the collection of unpaid assessments. 
23        The policy must, at a minimum, specify:
24                (A) the date on which common expenses must be 
25            paid to the entity and when an assessment is 
26            considered delinquent;
		SB3527 Enrolled	- 14 -	LRB104 18988 JRC 32433 b
1                (B) any late fees and interest the entity is 
2            entitled to impose on a delinquent unit owner's 
3            account;
4                (C) any returned-check charges the entity is 
5            entitled to impose;
6                (D) the circumstances, if any, under which a 
7            unit owner is entitled to enter into a payment 
8            plan with the entity and the minimum terms of the 
9            payment plan;
10                (E) the amount or duration of time before the 
11            entity refers a delinquent account to an attorney 
12            for legal action;
13                (F) the method by which payments may be 
14            applied on the delinquent account of a unit owner; 
15            and
16                (G) the legal remedies available to the entity 
17            to collect on a unit owner's delinquent account 
18            pursuant to the governing documents of the entity 
19            and Illinois law.
20            (2) As used in this subsection, "entity" means an 
21        association or a holder or assignee of the 
22        association's debt, whether the holder or assignee of 
23        the association's debt is an entity or a natural 
24        person.
25    In the performance of their duties, the officers and
26members of the board, whether appointed by the developer or
		SB3527 Enrolled	- 15 -	LRB104 18988 JRC 32433 b
1elected by the unit owners, shall exercise the care required
2of a fiduciary of the unit owners.
3    The collection of assessments from unit owners by an
4association, board of managers or their duly authorized agents
5shall not be considered acts constituting a collection agency
6for purposes of the Collection Agency Act.
7    The provisions of this Section are applicable to all
8condominium instruments recorded under this Act. Any portion
9of a condominium instrument which contains provisions contrary
10to these provisions shall be void as against public policy and
11ineffective. Any such instrument that fails to contain the
12provisions required by this Section shall be deemed to
13incorporate such provisions by operation of law.
14(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
15100-292, eff. 1-1-18.)
16    (765 ILCS 605/22.1)  (from Ch. 30, par. 322.1)
17    Sec. 22.1. (a) In the event of any resale of a condominium
18unit by a unit owner other than the developer such owner shall
19obtain from the Board of Managers and shall make available for
20inspection to the prospective purchaser, upon demand, the
21following:
22        (1) A copy of the Declaration, by-laws, other
23    condominium instruments, and any rules and regulations.
24        (2) A statement of any liens, including a statement of
25    the account of the unit setting forth the amounts of
		SB3527 Enrolled	- 16 -	LRB104 18988 JRC 32433 b
1    unpaid assessments and other charges due and owing as
2    authorized and limited by the provisions of Section 9 of
3    this Act or the condominium instruments.
4        (3) A statement of any capital expenditures
5    anticipated by the unit owner's association within the
6    current or succeeding 2 fiscal years.
7        (4) A statement of the status and amount of any
8    reserve for replacement fund and any portion of such fund
9    earmarked for any specified project by the Board of
10    Managers.
11        (5) A copy of the statement of financial condition of
12    the unit owner's association for the last fiscal year for
13    which such statement is available.
14        (6) A statement of the status of any pending suits or
15    judgments in which the unit owner's association is a
16    party.
17        (7) A statement setting forth what insurance coverage
18    is provided for all unit owners by the unit owner's
19    association.
20        (8) A statement that any improvements or alterations
21    made to the unit, or the limited common elements assigned
22    thereto, by the prior unit owner are in good faith
23    believed to be in compliance with the condominium
24    instruments.
25        (9) The identity and mailing address of the principal
26    officer of the unit owner's association or of the other
		SB3527 Enrolled	- 17 -	LRB104 18988 JRC 32433 b
1    officer or agent as is specifically designated to receive
2    notices.
3        (10) A copy of the collection policy adopted under 
4    subsection (t) of Section 18.4.
5    (b) The principal officer of the unit owner's association
6or such other officer as is specifically designated shall
7furnish the above information when requested to do so in
8writing and within 10 business days of the request.
9    (c) Within 15 days of the recording of a mortgage or trust
10deed against a unit ownership given by the owner of that unit
11to secure a debt, the owner shall inform the Board of Managers
12of the unit owner's association of the identity of the lender
13together with a mailing address at which the lender can
14receive notices from the association. If a unit owner fails or
15refuses to inform the Board as required under subsection (c)
16then that unit owner shall be liable to the association for all
17costs, expenses, and reasonable attorney's fees and such other
18damages, if any, incurred by the association as a result of
19such failure or refusal.
20    A reasonable fee, not to exceed $375, covering the direct
21out-of-pocket cost of providing such information and copying
22may be charged by the association or its Board of Managers to
23the unit seller for providing such information. Beginning one
24year after the effective date of this amendatory Act of the
25102nd General Assembly, the $375 fee shall be increased or
26decreased, as applicable, by a percentage equal to the
		SB3527 Enrolled	- 18 -	LRB104 18988 JRC 32433 b
1percentage change in the consumer price index-u during the
2preceding 12-month calendar year. "Consumer price index-u"
3means the index published by the Bureau of Labor Statistics of
4the United States Department of Labor that measures the
5average change in prices of goods and services purchased by
6all urban consumers, United States city average, all items,
71982-84 = 100. An association may charge an additional $100
8for rush service completed within 72 hours.
9(Source: P.A. 102-976, eff. 1-1-23.)