HB 5449

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Full Text of HB5449
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	HB5449 - 104th General Assembly
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		HB5449 Enrolled		LRB104 18328 JRC 31768 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 1-30 and 1-45 as follows:
6    (765 ILCS 160/1-30)
7    Sec. 1-30. Board duties and obligations; records.
8    (a) The board shall meet at least 4 times annually.
9    (b) A common interest community association may not enter
10into a contract with a current board member, or with a
11corporation, limited liability company, or partnership in
12which a board member or a member of his or her immediate family
13has 25% or more interest, unless notice of intent to enter into
14the contract is given to members within 20 days after a
15decision is made to enter into the contract and the members are
16afforded an opportunity by filing a petition, signed by 20% of
17the membership, for an election to approve or disapprove the
18contract; such petition shall be filed within 20 days after
19such notice and such election shall be held within 30 days
20after filing the petition. For purposes of this subsection, a
21board member's immediate family means the board member's
22spouse, parents, siblings, and children.
23    (c) The bylaws or operating agreement shall provide for
		HB5449 Enrolled	- 2 -	LRB104 18328 JRC 31768 b
1the maintenance, repair, and replacement of the common areas
2and payments therefor, including the method of approving
3payment vouchers.
4    (d) (Blank).
5    (e) The association may engage the services of a manager
6or management company.
7    (f) The association shall have one class of membership
8unless the declaration, bylaws, or operating agreement provide
9otherwise; however, this subsection (f) shall not be construed
10to limit the operation of subsection (c) of Section 1-20 of
11this Act.
12    (g) The board shall have the power, after notice and an
13opportunity to be heard, to levy and collect reasonable fines
14from members or unit owners for violations of the declaration,
15bylaws, operating agreement, and rules and regulations of the
16common interest community association.
17    (h) Other than attorney's fees and court or arbitration
18costs, no fees pertaining to the collection of a member's or
19unit owner's financial obligation to the association,
20including fees charged by a manager or managing agent, shall
21be added to and deemed a part of a member's or unit owner's
22respective share of the common expenses unless: (i) the
23managing agent fees relate to the costs to collect common
24expenses for the association; (ii) the fees are set forth in a
25contract between the managing agent and the association; and
26(iii) the authority to add the management fees to a member's or
		HB5449 Enrolled	- 3 -	LRB104 18328 JRC 31768 b
1unit owner's respective share of the common expenses is
2specifically stated in the declaration, bylaws, or operating
3agreement of the association.
4    (i) Board records.
5        (1) The board shall maintain the following records of
6    the association and make them available for examination
7    and copying at convenient hours of weekdays by any member
8    or unit owner in a common interest community subject to
9    the authority of the board, their mortgagees, and their
10    duly authorized agents or attorneys:
11            (i) Copies of the recorded declaration, other
12        community instruments, other duly recorded covenants
13        and bylaws and any amendments, articles of
14        incorporation, articles of organization, annual
15        reports, and any rules and regulations adopted by the
16        board shall be available. Prior to the organization of
17        the board, the developer shall maintain and make
18        available the records set forth in this paragraph (i)
19        for examination and copying.
20            (ii) Detailed and accurate records in
21        chronological order of the receipts and expenditures
22        affecting the common areas, specifying and itemizing
23        the maintenance and repair expenses of the common
24        areas and any other expenses incurred, and copies of
25        all contracts, leases, or other agreements entered
26        into by the board shall be maintained.
		HB5449 Enrolled	- 4 -	LRB104 18328 JRC 31768 b
1            (iii) The minutes of all meetings of the board
2        which shall be maintained for not less than 7 years.
3            (iv) With a written statement of a proper purpose,
4        ballots and proxies related thereto, if any, for any
5        election held for the board and for any other matters
6        voted on by the members, which shall be maintained for
7        not less than one year.
8            (v) With a written statement of a proper purpose,
9        such other records of the board as are available for
10        inspection by members of a not-for-profit corporation
11        pursuant to Section 107.75 of the General Not For
12        Profit Corporation Act of 1986 shall be maintained.
13            (vi) With respect to units owned by a land trust, a
14        living trust, or other legal entity, the trustee,
15        officer, or manager of the entity may designate, in
16        writing, a person to cast votes on behalf of the member
17        or unit owner and a designation shall remain in effect
18        until a subsequent document is filed with the
19        association.
20            (vii) Any reserve study.
21        (2) Where a request for records under this subsection
22    is made in writing to the board or its agent, failure to
23    provide the requested record or to respond within 30 days
24    shall be deemed a denial by the board.
25        (3) A reasonable fee may be charged by the board for
26    the cost of retrieving and copying records properly
		HB5449 Enrolled	- 5 -	LRB104 18328 JRC 31768 b
1    requested.
2        (4) If the board fails to provide records properly
3    requested under paragraph (1) of this subsection (i)
4    within the time period provided in that paragraph (1), the
5    member may seek appropriate relief and shall be entitled
6    to an award of reasonable attorney's fees and costs if the
7    member prevails and the court finds that such failure is
8    due to the acts or omissions of the board of managers or
9    the board of directors.
10    (j) The board shall have standing and capacity to act in a
11representative capacity in relation to matters involving the
12common areas or more than one unit, on behalf of the members or
13unit owners as their interests may appear.
14    (k) The board may contract with the highway commissioner
15of a road district in which the association is located, if the
16association comprises 50% of the population or greater of the
17township or road district, to furnish materials related to the
18maintenance or repair of roads. Any such purchases shall be
19included in the board's finance report as outlined in Section
201-45.
21    (l) The board must provide a website no later than January 
221, 2028 that unit owners can access on the Internet that 
23includes information about board and membership meetings and 
24the approved minutes from a meeting of the board.
25(Source: P.A. 102-921, eff. 5-27-22; 103-486, eff. 1-1-24.)
		HB5449 Enrolled	- 6 -	LRB104 18328 JRC 31768 b
1    (765 ILCS 160/1-45)
2    Sec. 1-45. Finances.
3    (a) Each member shall receive through a prescribed
4delivery method, at least 30 days but not more than 60 days
5prior to the adoption thereof by the board, a copy of the
6proposed annual budget together with an indication of which
7portions are intended for reserves, capital expenditures or
8repairs or payment of real estate taxes.
9    (b) The board shall provide all members with a reasonably
10detailed summary of the receipts, common expenses, and
11reserves for the preceding budget year. The board shall (i)
12make available for review to all members an itemized
13accounting of the common expenses for the preceding year
14actually incurred or paid, together with an indication of
15which portions were for reserves, capital expenditures or
16repairs or payment of real estate taxes and with a tabulation
17of the amounts collected pursuant to the budget or assessment,
18and showing the net excess or deficit of income over
19expenditures plus reserves or (ii) provide a consolidated
20annual independent audit report of the financial status of all
21fund accounts within the association. This information must be 
22supplied through electronic transmission to all members who 
23have provided their information to the association and 
24authorized the association to transmit such information by 
25electronic transmission.
26    (c) If an adopted budget or any separate assessment
		HB5449 Enrolled	- 7 -	LRB104 18328 JRC 31768 b
1adopted by the board would result in the sum of all regular and
2separate assessments payable in the current fiscal year
3exceeding 115% of the sum of all regular and separate
4assessments payable during the preceding fiscal year, the
5common interest community association, upon written petition
6by members with 20% of the votes of the association delivered
7to the board within 14 days of the board action, shall call a
8meeting of the members within 30 days of the date of delivery
9of the petition to consider the budget or separate assessment;
10unless a majority of the total votes of the members are cast at
11the meeting to reject the budget or separate assessment, it
12shall be deemed ratified.
13    (d) If total common expenses exceed the total amount of
14the approved and adopted budget, the common interest community
15association shall disclose this variance to all its members
16and specifically identify the subsequent assessments needed to
17offset this variance in future budgets.
18    (e) Separate assessments for expenditures relating to
19emergencies or mandated by law may be adopted by the board
20without being subject to member approval or the provisions of
21subsection (c) or (f) of this Section. As used herein,
22"emergency" means a danger to or a compromise of the
23structural integrity of the common areas or any of the common
24facilities of the common interest community. "Emergency" also
25includes a danger to the life, health or safety of the
26membership.
		HB5449 Enrolled	- 8 -	LRB104 18328 JRC 31768 b
1    (f) Assessments for additions and alterations to the
2common areas or to association-owned property not included in
3the adopted annual budget, shall be separately assessed and
4are subject to approval of a simple majority of the total
5members at a meeting called for that purpose.
6    (g) The board may adopt separate assessments payable over
7more than one fiscal year. With respect to multi-year
8assessments not governed by subsections (e) and (f) of this
9Section, the entire amount of the multi-year assessment shall
10be deemed considered and authorized in the first fiscal year
11in which the assessment is approved.
12    (h) The board of a common interest community association
13shall have the authority to establish and maintain a system of
14master metering of public utility services to collect payments
15in conjunction therewith, subject to the requirements of the
16Tenant Utility Payment Disclosure Act.
17    (i) An association subject to this Act that consists of
18100 or more units shall use generally accepted accounting
19principles in fulfilling any accounting obligations under this
20Act.
21(Source: P.A. 100-292, eff. 1-1-18.)
22    Section 10. The Condominium Property Act is amended by
23changing Sections 18 and 18.4 as follows:
24    (765 ILCS 605/18)  (from Ch. 30, par. 318)
		HB5449 Enrolled	- 9 -	LRB104 18328 JRC 31768 b
1    Sec. 18. Contents of bylaws. The bylaws shall provide for
2at least the following:
3        (a)(1) The election from among the unit owners of a
4    board of managers, the number of persons constituting such
5    board, and that the terms of at least one-third of the
6    members of the board shall expire annually and that all
7    members of the board shall be elected at large; if there
8    are multiple owners of a single unit, only one of the
9    multiple owners shall be eligible to serve as a member of
10    the board at any one time. A declaration first submitting
11    property to the provisions of this Act, in accordance with
12    Section 3 after the effective date of this amendatory Act
13    of the 102nd General Assembly, or an amendment to the
14    condominium instruments adopted in accordance with Section
15    27 after the effective date of this amendatory Act of the
16    102nd General Assembly, may provide that a majority of the
17    board of managers, or such lesser number as may be
18    specified in the declaration, must be comprised of unit
19    owners occupying their unit as their primary residence;
20    provided that the condominium instruments may not require
21    that more than a majority of the board shall be comprised
22    of unit owners who occupy their unit as their principal
23    residence;
24        (2) the powers and duties of the board;
25        (3) the compensation, if any, of the members of the
26    board;
		HB5449 Enrolled	- 10 -	LRB104 18328 JRC 31768 b
1        (4) the method of removal from office of members of
2    the board;
3        (5) that the board may engage the services of a
4    manager or managing agent;
5        (6) that each unit owner shall receive, at least 25
6    days prior to the adoption thereof by the board of
7    managers, a copy of the proposed annual budget together
8    with an indication of which portions are intended for
9    reserves, capital expenditures or repairs or payment of
10    real estate taxes;
11        (7) that the board of managers shall annually supply
12    to all unit owners an itemized accounting of the common
13    expenses for the preceding year actually incurred or paid, 
14    including receipts and expenses, together with an
15    indication of which portions were for reserves, capital
16    expenditures or repairs or payment of real estate taxes
17    and with a tabulation of the amounts collected pursuant to
18    the budget or assessment, and showing the net excess or
19    deficit of income over expenditures plus reserves; this 
20    information shall be supplied through electronic 
21    transmission to all members who have provided their 
22    information to the association and authorized the 
23    association to transmit such information by electronic 
24    transmission as provided in Section 18.4;
25        (8)(i) that each unit owner shall receive notice, in
26    the same manner as is provided in this Act for membership
		HB5449 Enrolled	- 11 -	LRB104 18328 JRC 31768 b
1    meetings, of any meeting of the board of managers
2    concerning the adoption of the proposed annual budget and
3    regular assessments pursuant thereto or to adopt a
4    separate (special) assessment, (ii) that except as
5    provided in subsection (iv) below, if an adopted budget or
6    any separate assessment adopted by the board would result
7    in the sum of all regular and separate assessments payable
8    in the current fiscal year exceeding 115% of the sum of all
9    regular and separate assessments payable during the
10    preceding fiscal year, the board of managers, upon written
11    petition by unit owners with 20 percent of the votes of the
12    association delivered to the board within 21 days of the
13    board action, shall call a meeting of the unit owners
14    within 30 days of the date of delivery of the petition to
15    consider the budget or separate assessment; unless a
16    majority of the total votes of the unit owners are cast at
17    the meeting to reject the budget or separate assessment,
18    it is ratified, (iii) that any common expense not set
19    forth in the budget or any increase in assessments over
20    the amount adopted in the budget shall be separately
21    assessed against all unit owners, (iv) that separate
22    assessments for expenditures relating to emergencies or
23    mandated by law may be adopted by the board of managers
24    without being subject to unit owner approval or the
25    provisions of item (ii) above or item (v) below. As used
26    herein, "emergency" means an immediate danger to the
		HB5449 Enrolled	- 12 -	LRB104 18328 JRC 31768 b
1    structural integrity of the common elements or to the
2    life, health, safety or property of the unit owners, (v)
3    that assessments for additions and alterations to the
4    common elements or to association-owned property not
5    included in the adopted annual budget, shall be separately
6    assessed and are subject to approval of two-thirds of the
7    total votes of all unit owners, (vi) that the board of
8    managers may adopt separate assessments payable over more
9    than one fiscal year. With respect to multi-year
10    assessments not governed by items (iv) and (v), the entire
11    amount of the multi-year assessment shall be deemed
12    considered and authorized in the first fiscal year in
13    which the assessment is approved;
14        (9)(A) that every meeting of the board of managers
15    shall be open to any unit owner, except that the board may
16    close any portion of a noticed meeting or meet separately
17    from a noticed meeting to: (i) discuss litigation when an
18    action against or on behalf of the particular association
19    has been filed and is pending in a court or administrative
20    tribunal, or when the board of managers finds that such an
21    action is probable or imminent, (ii) discuss the
22    appointment, employment, engagement, or dismissal of an
23    employee, independent contractor, agent, or other provider
24    of goods and services, (iii) interview a potential
25    employee, independent contractor, agent, or other provider
26    of goods and services, (iv) discuss violations of rules
		HB5449 Enrolled	- 13 -	LRB104 18328 JRC 31768 b
1    and regulations of the association, (v) discuss a unit
2    owner's unpaid share of common expenses, or (vi) consult
3    with the association's legal counsel; that any vote on
4    these matters shall take place at a meeting of the board of
5    managers or portion thereof open to any unit owner;
6        (B) that board members may participate in and act at
7    any meeting of the board of managers in person, by
8    telephonic means, or by use of any acceptable
9    technological means whereby all persons participating in
10    the meeting can communicate with each other; that
11    participation constitutes attendance and presence in
12    person at the meeting;
13        (C) that any unit owner may record the proceedings at
14    meetings of the board of managers or portions thereof
15    required to be open by this Act by tape, film or other
16    means, and that the board may prescribe reasonable rules
17    and regulations to govern the right to make such
18    recordings;
19        (D) that notice of every meeting of the board of
20    managers shall be given to every board member at least 48
21    hours prior thereto, unless the board member waives notice
22    of the meeting pursuant to subsection (a) of Section 18.8;
23    and
24        (E) that notice of every meeting of the board of
25    managers shall be posted in entranceways, elevators, or
26    other conspicuous places in the condominium at least 48
		HB5449 Enrolled	- 14 -	LRB104 18328 JRC 31768 b
1    hours prior to the meeting of the board of managers except
2    where there is no common entranceway for 7 or more units,
3    the board of managers may designate one or more locations
4    in the proximity of these units where the notices of
5    meetings shall be posted; that notice of every meeting of
6    the board of managers shall also be given at least 48 hours
7    prior to the meeting, or such longer notice as this Act may
8    separately require, to: (i) each unit owner who has
9    provided the association with written authorization to
10    conduct business by acceptable technological means, and
11    (ii) to the extent that the condominium instruments of an
12    association require, to each other unit owner, as required
13    by subsection (f) of Section 18.8, by mail or delivery,
14    and that no other notice of a meeting of the board of
15    managers need be given to any unit owner;
16        (10) that the board shall meet at least 4 times
17    annually;
18        (11) that no member of the board or officer shall be
19    elected for a term of more than 2 years, but that officers
20    and board members may succeed themselves;
21        (12) the designation of an officer to mail and receive
22    all notices and execute amendments to condominium
23    instruments as provided for in this Act and in the
24    condominium instruments;
25        (13) the method of filling vacancies on the board
26    which shall include authority for the remaining members of
		HB5449 Enrolled	- 15 -	LRB104 18328 JRC 31768 b
1    the board to fill the vacancy by two-thirds vote until the
2    next annual meeting of unit owners or for a period
3    terminating no later than 30 days following the filing of
4    a petition signed by unit owners holding 20% of the votes
5    of the association requesting a meeting of the unit owners
6    to fill the vacancy for the balance of the term, and that a
7    meeting of the unit owners shall be called for purposes of
8    filling a vacancy on the board no later than 30 days
9    following the filing of a petition signed by unit owners
10    holding 20% of the votes of the association requesting
11    such a meeting, and the method of filling vacancies among
12    the officers that shall include the authority for the
13    members of the board to fill the vacancy for the unexpired
14    portion of the term;
15        (14) what percentage of the board of managers, if
16    other than a majority, shall constitute a quorum;
17        (15) provisions concerning notice of board meetings to
18    members of the board;
19        (16) the board of managers may not enter into a
20    contract with a current board member or with a corporation
21    or partnership in which a board member or a member of the
22    board member's immediate family has 25% or more interest,
23    unless notice of intent to enter the contract is given to
24    unit owners within 20 days after a decision is made to
25    enter into the contract and the unit owners are afforded
26    an opportunity by filing a petition, signed by 20% of the
		HB5449 Enrolled	- 16 -	LRB104 18328 JRC 31768 b
1    unit owners, for an election to approve or disapprove the
2    contract; such petition shall be filed within 30 days
3    after such notice and such election shall be held within
4    30 days after filing the petition; for purposes of this
5    subsection, a board member's immediate family means the
6    board member's spouse, parents, and children;
7        (17) that the board of managers may disseminate to
8    unit owners biographical and background information about
9    candidates for election to the board if (i) reasonable
10    efforts to identify all candidates are made and all
11    candidates are given an opportunity to include
12    biographical and background information in the information
13    to be disseminated; and (ii) the board does not express a
14    preference in favor of any candidate;
15        (18) any proxy distributed for board elections by the
16    board of managers gives unit owners the opportunity to
17    designate any person as the proxy holder, and gives the
18    unit owner the opportunity to express a preference for any
19    of the known candidates for the board or to write in a
20    name;
21        (19) that special meetings of the board of managers
22    can be called by the president or 25% of the members of the
23    board;
24        (20) that the board of managers may establish and
25    maintain a system of master metering of public utility
26    services and collect payments in connection therewith,
		HB5449 Enrolled	- 17 -	LRB104 18328 JRC 31768 b
1    subject to the requirements of the Tenant Utility Payment
2    Disclosure Act; and
3        (21) that the board may ratify and confirm actions of
4    the members of the board taken in response to an
5    emergency, as that term is defined in subdivision
6    (a)(8)(iv) of this Section; that the board shall give
7    notice to the unit owners of: (i) the occurrence of the
8    emergency event within 7 business days after the emergency
9    event, and (ii) the general description of the actions
10    taken to address the event within 7 days after the
11    emergency event.
12        The intent of the provisions of Public Act 99-472
13    adding this paragraph (21) is to empower and support
14    boards to act in emergencies.
15        (b)(1) What percentage of the unit owners, if other
16    than 20%, shall constitute a quorum provided that, for
17    condominiums with 20 or more units, the percentage of unit
18    owners constituting a quorum shall be 20% unless the unit
19    owners holding a majority of the percentage interest in
20    the association provide for a higher percentage, provided
21    that in voting on amendments to the association's bylaws,
22    a unit owner who is in arrears on the unit owner's regular
23    or separate assessments for 60 days or more, shall not be
24    counted for purposes of determining if a quorum is
25    present, but that unit owner retains the right to vote on
26    amendments to the association's bylaws;
		HB5449 Enrolled	- 18 -	LRB104 18328 JRC 31768 b
1        (2) that the association shall have one class of
2    membership;
3        (3) that the members shall hold an annual meeting, one
4    of the purposes of which shall be to elect members of the
5    board of managers;
6        (4) the method of calling meetings of the unit owners;
7        (5) that special meetings of the members can be called
8    by the president, board of managers, or by 20% of unit
9    owners;
10        (6) that written notice of any membership meeting
11    shall be mailed or delivered giving members no less than
12    10 and no more than 30 days notice of the time, place and
13    purpose of such meeting except that notice may be sent, to
14    the extent the condominium instruments or rules adopted
15    thereunder expressly so provide, by electronic
16    transmission consented to by the unit owner to whom the
17    notice is given, provided the director and officer or his
18    agent certifies in writing to the delivery by electronic
19    transmission;
20        (7) that voting shall be on a percentage basis, and
21    that the percentage vote to which each unit is entitled is
22    the percentage interest of the undivided ownership of the
23    common elements appurtenant thereto, provided that the
24    bylaws may provide for approval by unit owners in
25    connection with matters where the requisite approval on a
26    percentage basis is not specified in this Act, on the
		HB5449 Enrolled	- 19 -	LRB104 18328 JRC 31768 b
1    basis of one vote per unit;
2        (8) that, where there is more than one owner of a unit,
3    if only one of the multiple owners is present at a meeting
4    of the association, he is entitled to cast all the votes
5    allocated to that unit, if more than one of the multiple
6    owners are present, the votes allocated to that unit may
7    be cast only in accordance with the agreement of a
8    majority in interest of the multiple owners, unless the
9    declaration expressly provides otherwise, that there is
10    majority agreement if any one of the multiple owners cast
11    the votes allocated to that unit without protest being
12    made promptly to the person presiding over the meeting by
13    any of the other owners of the unit;
14        (9)(A) except as provided in subparagraph (B) of this
15    paragraph (9) in connection with board elections, that a
16    unit owner may vote by proxy executed in writing by the
17    unit owner or by his duly authorized attorney in fact;
18    that the proxy must bear the date of execution and, unless
19    the condominium instruments or the written proxy itself
20    provide otherwise, is invalid after 11 months from the
21    date of its execution; to the extent the condominium
22    instruments or rules adopted thereunder expressly so
23    provide, a vote or proxy may be submitted by electronic
24    transmission, provided that any such electronic
25    transmission shall either set forth or be submitted with
26    information from which it can be determined that the
		HB5449 Enrolled	- 20 -	LRB104 18328 JRC 31768 b
1    electronic transmission was authorized by the unit owner
2    or the unit owner's proxy;
3        (B) that if a rule adopted at least 120 days before a
4    board election or the declaration or bylaws provide for
5    balloting as set forth in this subsection, unit owners may
6    not vote by proxy in board elections, but may vote only (i)
7    by submitting an association-issued ballot in person at
8    the election meeting or (ii) by submitting an
9    association-issued ballot to the association or its
10    designated agent by mail or other means of delivery
11    specified in the declaration, bylaws, or rule; that the
12    ballots shall be mailed or otherwise distributed to unit
13    owners not less than 10 and not more than 30 days before
14    the election meeting, and the board shall give unit owners
15    not less than 21 days' prior written notice of the
16    deadline for inclusion of a candidate's name on the
17    ballots; that the deadline shall be no more than 7 days
18    before the ballots are mailed or otherwise distributed to
19    unit owners; that every such ballot must include the names
20    of all candidates who have given the board or its
21    authorized agent timely written notice of their candidacy
22    and must give the person casting the ballot the
23    opportunity to cast votes for candidates whose names do
24    not appear on the ballot; that a ballot received by the
25    association or its designated agent after the close of
26    voting shall not be counted; that a unit owner who submits
		HB5449 Enrolled	- 21 -	LRB104 18328 JRC 31768 b
1    a ballot by mail or other means of delivery specified in
2    the declaration, bylaws, or rule may request and cast a
3    ballot in person at the election meeting, and thereby void
4    any ballot previously submitted by that unit owner;
5        (B-5) that if a rule adopted at least 120 days before a
6    board election or the declaration or bylaws provide for
7    balloting as set forth in this subparagraph, unit owners
8    may not vote by proxy in board elections, but may vote only
9    (i) by submitting an association-issued ballot in person
10    at the election meeting; or (ii) by any acceptable
11    technological means as defined in Section 2 of this Act;
12    instructions regarding the use of electronic means for
13    voting shall be distributed to all unit owners not less
14    than 10 and not more than 30 days before the election
15    meeting, and the board shall give unit owners not less
16    than 21 days' prior written notice of the deadline for
17    inclusion of a candidate's name on the ballots; the
18    deadline shall be no more than 7 days before the
19    instructions for voting using electronic or acceptable
20    technological means is distributed to unit owners; every
21    instruction notice must include the names of all
22    candidates who have given the board or its authorized
23    agent timely written notice of their candidacy and must
24    give the person voting through electronic or acceptable
25    technological means the opportunity to cast votes for
26    candidates whose names do not appear on the ballot; a unit
		HB5449 Enrolled	- 22 -	LRB104 18328 JRC 31768 b
1    owner who submits a vote using electronic or acceptable
2    technological means may request and cast a ballot in
3    person at the election meeting, thereby voiding any vote
4    previously submitted by that unit owner;
5        (C) that if a written petition by unit owners with at
6    least 20% of the votes of the association is delivered to
7    the board within 30 days after the board's approval of a
8    rule adopted pursuant to subparagraph (B) or subparagraph
9    (B-5) of this paragraph (9), the board shall call a
10    meeting of the unit owners within 30 days after the date of
11    delivery of the petition; that unless a majority of the
12    total votes of the unit owners are cast at the meeting to
13    reject the rule, the rule is ratified;
14        (D) that votes cast by ballot under subparagraph (B)
15    or electronic or acceptable technological means under
16    subparagraph (B-5) of this paragraph (9) are valid for the
17    purpose of establishing a quorum;
18        (10) that the association may, upon adoption of the
19    appropriate rules by the board of managers, conduct
20    elections by secret ballot whereby the voting ballot is
21    marked only with the percentage interest for the unit and
22    the vote itself, provided that the board further adopt
23    rules to verify the status of the unit owner issuing a
24    proxy or casting a ballot; and further, that a candidate
25    for election to the board of managers or such candidate's
26    representative shall have the right to be present at the
		HB5449 Enrolled	- 23 -	LRB104 18328 JRC 31768 b
1    counting of ballots at such election;
2        (11) that in the event of a resale of a condominium
3    unit the purchaser of a unit from a seller other than the
4    developer pursuant to an installment sales contract for
5    purchase shall during such times as he or she resides in
6    the unit be counted toward a quorum for purposes of
7    election of members of the board of managers at any
8    meeting of the unit owners called for purposes of electing
9    members of the board, shall have the right to vote for the
10    election of members of the board of managers and to be
11    elected to and serve on the board of managers unless the
12    seller expressly retains in writing any or all of such
13    rights. In no event may the seller and purchaser both be
14    counted toward a quorum, be permitted to vote for a
15    particular office or be elected and serve on the board.
16    Satisfactory evidence of the installment sales contract
17    shall be made available to the association or its agents.
18    For purposes of this subsection, "installment sales
19    contract" shall have the same meaning as set forth in
20    Section 5 of the Installment Sales Contract Act and
21    Section 1(e) of the Dwelling Unit Installment Contract
22    Act;
23        (12) the method by which matters subject to the
24    approval of unit owners set forth in this Act, or in the
25    condominium instruments, will be submitted to the unit
26    owners at special membership meetings called for such
		HB5449 Enrolled	- 24 -	LRB104 18328 JRC 31768 b
1    purposes; and
2        (13) that matters subject to the affirmative vote of
3    not less than 2/3 of the votes of unit owners at a meeting
4    duly called for that purpose, shall include, but not be
5    limited to:
6            (i) merger or consolidation of the association;
7            (ii) sale, lease, exchange, or other disposition
8        (excluding the mortgage or pledge) of all, or
9        substantially all of the property and assets of the
10        association; and
11            (iii) the purchase or sale of land or of units on
12        behalf of all unit owners.
13        (c) Election of a president from among the board of
14    managers, who shall preside over the meetings of the board
15    of managers and of the unit owners.
16        (d) Election of a secretary from among the board of
17    managers, who shall keep the minutes of all meetings of
18    the board of managers and of the unit owners and who shall,
19    in general, perform all the duties incident to the office
20    of secretary.
21        (e) Election of a treasurer from among the board of
22    managers, who shall keep the financial records and books
23    of account.
24        (f) Maintenance, repair and replacement of the common
25    elements and payments therefor, including the method of
26    approving payment vouchers.
		HB5449 Enrolled	- 25 -	LRB104 18328 JRC 31768 b
1        (g) An association with 30 or more units shall obtain
2    and maintain fidelity insurance covering persons who
3    control or disburse funds of the association for the
4    maximum amount of coverage available to protect funds in
5    the custody or control of the association plus the
6    association reserve fund. All management companies which
7    are responsible for the funds held or administered by the
8    association shall maintain and furnish to the association
9    a fidelity bond for the maximum amount of coverage
10    available to protect funds in the custody of the
11    management company at any time. The association shall bear
12    the cost of the fidelity insurance and fidelity bond,
13    unless otherwise provided by contract between the
14    association and a management company. The association
15    shall be the direct obligee of any such fidelity bond. A
16    management company holding reserve funds of an association
17    shall at all times maintain a separate account for each
18    association, provided, however, that for investment
19    purposes, the Board of Managers of an association may
20    authorize a management company to maintain the
21    association's reserve funds in a single interest bearing
22    account with similar funds of other associations. The
23    management company shall at all times maintain records
24    identifying all moneys of each association in such
25    investment account. The management company may hold all
26    operating funds of associations which it manages in a
		HB5449 Enrolled	- 26 -	LRB104 18328 JRC 31768 b
1    single operating account but shall at all times maintain
2    records identifying all moneys of each association in such
3    operating account. Such operating and reserve funds held
4    by the management company for the association shall not be
5    subject to attachment by any creditor of the management
6    company.
7        For the purpose of this subsection, a management
8    company shall be defined as a person, partnership,
9    corporation, or other legal entity entitled to transact
10    business on behalf of others, acting on behalf of or as an
11    agent for a unit owner, unit owners or association of unit
12    owners for the purpose of carrying out the duties,
13    responsibilities, and other obligations necessary for the
14    day to day operation and management of any property
15    subject to this Act. For purposes of this subsection, the
16    term "fiduciary insurance coverage" shall be defined as
17    both a fidelity bond and directors and officers liability
18    coverage, the fidelity bond in the full amount of
19    association funds and association reserves that will be in
20    the custody of the association, and the directors and
21    officers liability coverage at a level as shall be
22    determined to be reasonable by the board of managers, if
23    not otherwise established by the declaration or by laws.
24        Until one year after September 21, 1985 (the effective
25    date of Public Act 84-722), if a condominium association
26    has reserves plus assessments in excess of $250,000 and
		HB5449 Enrolled	- 27 -	LRB104 18328 JRC 31768 b
1    cannot reasonably obtain 100% fidelity bond coverage for
2    such amount, then it must obtain a fidelity bond coverage
3    of $250,000.
4        (h) Method of estimating the amount of the annual
5    budget, and the manner of assessing and collecting from
6    the unit owners their respective shares of such estimated
7    expenses, and of any other expenses lawfully agreed upon.
8        (i) That upon 10 days notice to the manager or board of
9    managers and payment of a reasonable fee, any unit owner
10    shall be furnished a statement of his account setting
11    forth the amount of any unpaid assessments or other
12    charges due and owing from such owner.
13        (j) Designation and removal of personnel necessary for
14    the maintenance, repair and replacement of the common
15    elements.
16        (k) Such restrictions on and requirements respecting
17    the use and maintenance of the units and the use of the
18    common elements, not set forth in the declaration, as are
19    designed to prevent unreasonable interference with the use
20    of their respective units and of the common elements by
21    the several unit owners.
22        (l) Method of adopting and of amending administrative
23    rules and regulations governing the operation and use of
24    the common elements.
25        (m) The percentage of votes required to modify or
26    amend the bylaws, but each one of the particulars set
		HB5449 Enrolled	- 28 -	LRB104 18328 JRC 31768 b
1    forth in this section shall always be embodied in the
2    bylaws.
3        (n)(i) The provisions of this Act, the declaration,
4    bylaws, other condominium instruments, and rules and
5    regulations that relate to the use of the individual unit
6    or the common elements shall be applicable to any person
7    leasing a unit and shall be deemed to be incorporated in
8    any lease executed or renewed on or after August 30, 1984
9    (the effective date of Public Act 83-1271).
10        (ii) With regard to any lease entered into subsequent
11    to July 1, 1990 (the effective date of Public Act 86-991),
12    the unit owner leasing the unit shall deliver a copy of the
13    signed lease to the board or if the lease is oral, a
14    memorandum of the lease, not later than the date of
15    occupancy or 10 days after the lease is signed, whichever
16    occurs first. In addition to any other remedies, by filing
17    an action jointly against the tenant and the unit owner,
18    an association may seek to enjoin a tenant from occupying
19    a unit or seek to evict a tenant under the provisions of
20    Article IX of the Code of Civil Procedure for failure of
21    the lessor-owner to comply with the leasing requirements
22    prescribed by this Section or by the declaration, bylaws,
23    and rules and regulations. The board of managers may
24    proceed directly against a tenant, at law or in equity, or
25    under the provisions of Article IX of the Code of Civil
26    Procedure, for any other breach by tenant of any
		HB5449 Enrolled	- 29 -	LRB104 18328 JRC 31768 b
1    covenants, rules, regulations or bylaws.
2        (o) The association shall have no authority to forbear
3    the payment of assessments by any unit owner.
4        (p) That when 30% or fewer of the units, by number,
5    possess over 50% in the aggregate of the votes in the
6    association, any percentage vote of members specified
7    herein or in the condominium instruments shall require the
8    specified percentage by number of units rather than by
9    percentage of interest in the common elements allocated to
10    units that would otherwise be applicable and garage units
11    or storage units, or both, shall have, in total, no more
12    votes than their aggregate percentage of ownership in the
13    common elements; this shall mean that if garage units or
14    storage units, or both, are to be given a vote, or portion
15    of a vote, that the association must add the total number
16    of votes cast of garage units, storage units, or both, and
17    divide the total by the number of garage units, storage
18    units, or both, and multiply by the aggregate percentage
19    of ownership of garage units and storage units to
20    determine the vote, or portion of a vote, that garage
21    units or storage units, or both, have. For purposes of
22    this subsection (p), when making a determination of
23    whether 30% or fewer of the units, by number, possess over
24    50% in the aggregate of the votes in the association, a
25    unit shall not include a garage unit or a storage unit.
26        (q) That a unit owner may not assign, delegate,
		HB5449 Enrolled	- 30 -	LRB104 18328 JRC 31768 b
1    transfer, surrender, or avoid the duties,
2    responsibilities, and liabilities of a unit owner under
3    this Act, the condominium instruments, or the rules and
4    regulations of the Association; and that such an attempted
5    assignment, delegation, transfer, surrender, or avoidance
6    shall be deemed void.
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 which fails to contain the
12provisions required by this Section shall be deemed to
13incorporate such provisions by operation of law.
14(Source: P.A. 102-162, eff. 1-1-22.)
15    (765 ILCS 605/18.4)  (from Ch. 30, par. 318.4)
16    Sec. 18.4. Powers and duties of board of managers. The
17board of managers shall exercise for the association all
18powers, duties and authority vested in the association by law
19or the condominium instruments except for such powers, duties
20and authority reserved by law to the members of the
21association. The powers and duties of the board of managers
22shall include, but shall not be limited to, the following:
23        (a) To provide for the operation, care, upkeep,
24    maintenance, replacement and improvement of the common
25    elements. Nothing in this subsection (a) shall be deemed
		HB5449 Enrolled	- 31 -	LRB104 18328 JRC 31768 b
1    to invalidate any provision in a condominium instrument
2    placing limits on expenditures for the common elements,
3    provided, that such limits shall not be applicable to
4    expenditures for repair, replacement, or restoration of
5    existing portions of the common elements. The term
6    "repair, replacement or restoration" means expenditures to
7    deteriorated or damaged portions of the property related
8    to the existing decorating, facilities, or structural or
9    mechanical components, interior or exterior surfaces, or
10    energy systems and equipment with the functional
11    equivalent of the original portions of such areas.
12    Replacement of the common elements may result in an
13    improvement over the original quality of such elements or
14    facilities; provided that, unless the improvement is
15    mandated by law or is an emergency as defined in item (iv)
16    of subparagraph (8) of paragraph (a) of Section 18, if the
17    improvement results in a proposed expenditure exceeding 5%
18    of the annual budget, the board of managers, upon written
19    petition by unit owners with 20% of the votes of the
20    association delivered to the board within 21 days of the
21    board action to approve the expenditure, shall call a
22    meeting of the unit owners within 30 days of the date of
23    delivery of the petition to consider the expenditure.
24    Unless a majority of the total votes of the unit owners are
25    cast at the meeting to reject the expenditure, it is
26    ratified.
		HB5449 Enrolled	- 32 -	LRB104 18328 JRC 31768 b
1        (b) To prepare, adopt and distribute the annual budget
2    for the property.
3        (c) To levy and expend assessments.
4        (d) To collect assessments from unit owners.
5        (e) To provide for the employment and dismissal of the
6    personnel necessary or advisable for the maintenance and
7    operation of the common elements.
8        (f) To obtain adequate and appropriate kinds of
9    insurance.
10        (g) To own, convey, encumber, lease, and otherwise
11    deal with units conveyed to or purchased by it.
12        (h) To adopt and amend rules and regulations covering
13    the details of the operation and use of the property,
14    after a meeting of the unit owners called for the specific
15    purpose of discussing the proposed rules and regulations.
16    Notice of the meeting shall contain the full text of the
17    proposed rules and regulations, and the meeting shall
18    conform to the requirements of Section 18(b) of this Act,
19    except that no quorum is required at the meeting of the
20    unit owners unless the declaration, bylaws or other
21    condominium instrument expressly provides to the contrary.
22    However, no rule or regulation may impair any rights
23    guaranteed by the First Amendment to the Constitution of
24    the United States or Section 4 of Article I of the Illinois
25    Constitution including, but not limited to, the free
26    exercise of religion, nor may any rules or regulations
		HB5449 Enrolled	- 33 -	LRB104 18328 JRC 31768 b
1    conflict with the provisions of this Act or the
2    condominium instruments. No rule or regulation shall
3    prohibit any reasonable accommodation for religious
4    practices, including the attachment of religiously
5    mandated objects to the front-door area of a condominium
6    unit.
7        (i) To keep detailed, accurate records of the receipts
8    and expenditures affecting the use and operation of the
9    property.
10        (j) To have access to each unit from time to time as
11    may be necessary for the maintenance, repair or
12    replacement of any common elements or for making emergency
13    repairs necessary to prevent damage to the common elements
14    or to other units.
15        (k) To pay real property taxes, special assessments,
16    and any other special taxes or charges of the State of
17    Illinois or of any political subdivision thereof, or other
18    lawful taxing or assessing body, which are authorized by
19    law to be assessed and levied upon the real property of the
20    condominium.
21        (l) To impose charges for late payment of a unit
22    owner's proportionate share of the common expenses, or any
23    other expenses lawfully agreed upon, and after notice and
24    an opportunity to be heard, to levy reasonable fines for
25    violation of the declaration, by-laws, and rules and
26    regulations of the association.
		HB5449 Enrolled	- 34 -	LRB104 18328 JRC 31768 b
1        (m) By a majority vote of the entire board of
2    managers, to assign the right of the association to future
3    income from common expenses or other sources, and to
4    mortgage or pledge substantially all of the remaining
5    assets of the association.
6        (n) To record the dedication of a portion of the
7    common elements to a public body for use as, or in
8    connection with, a street or utility where authorized by
9    the unit owners under the provisions of Section 14.2.
10        (o) To record the granting of an easement for the
11    laying of cable television or high speed Internet cable
12    where authorized by the unit owners under the provisions
13    of Section 14.3; to obtain, if available and determined by
14    the board to be in the best interests of the association,
15    cable television or bulk high speed Internet service for
16    all of the units of the condominium on a bulk identical
17    service and equal cost per unit basis; and to assess and
18    recover the expense as a common expense and, if so
19    determined by the board, to assess each and every unit on
20    the same equal cost per unit basis.
21        (p) To seek relief on behalf of all unit owners when
22    authorized pursuant to subsection (c) of Section 10 from
23    or in connection with the assessment or levying of real
24    property taxes, special assessments, and any other special
25    taxes or charges of the State of Illinois or of any
26    political subdivision thereof or of any lawful taxing or
		HB5449 Enrolled	- 35 -	LRB104 18328 JRC 31768 b
1    assessing body.
2        (q) To reasonably accommodate the needs of a unit
3    owner who is a person with a disability as required by the
4    federal Civil Rights Act of 1968, the Human Rights Act and
5    any applicable local ordinances in the exercise of its
6    powers with respect to the use of common elements or
7    approval of modifications in an individual unit.
8        (r) To accept service of a notice of claim for
9    purposes of the Mechanics Lien Act on behalf of each
10    respective member of the Unit Owners' Association with
11    respect to improvements performed pursuant to any contract
12    entered into by the Board of Managers or any contract
13    entered into prior to the recording of the condominium
14    declaration pursuant to this Act, for a property
15    containing more than 8 units, and to distribute the notice
16    to the unit owners within 7 days of the acceptance of the
17    service by the Board of Managers. The service shall be
18    effective as if each individual unit owner had been served
19    individually with notice.
20        (s) To adopt and amend rules and regulations (l)
21    authorizing electronic delivery of notices and other
22    communications required or contemplated by this Act to
23    each unit owner who provides the association with written
24    authorization for electronic delivery and an electronic
25    address to which such communications are to be
26    electronically transmitted; and (2) authorizing each unit
		HB5449 Enrolled	- 36 -	LRB104 18328 JRC 31768 b
1    owner to designate an electronic address or a U.S. Postal
2    Service address, or both, as the unit owner's address on
3    any list of members or unit owners which an association is
4    required to provide upon request pursuant to any provision
5    of this Act or any condominium instrument.
6        (t) The board must provide a website no later than 
7    January 1, 2028 that unit owners can access on the 
8    Internet that includes information about board and 
9    membership meetings and the approved minutes from a 
10    meeting of the board.
11    In the performance of their duties, the officers and
12members of the board, whether appointed by the developer or
13elected by the unit owners, shall exercise the care required
14of a fiduciary of the unit owners.
15    The collection of assessments from unit owners by an
16association, board of managers or their duly authorized agents
17shall not be considered acts constituting a collection agency
18for purposes of the Collection Agency Act.
19    The provisions of this Section are applicable to all
20condominium instruments recorded under this Act. Any portion
21of a condominium instrument which contains provisions contrary
22to these provisions shall be void as against public policy and
23ineffective. Any such instrument that fails to contain the
24provisions required by this Section shall be deemed to
25incorporate such provisions by operation of law.
26(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
		HB5449 Enrolled	- 37 -	LRB104 18328 JRC 31768 b
1100-292, eff. 1-1-18.)