99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2606

Introduced , by Rep. Kenneth Dunkin

SYNOPSIS AS INTRODUCED:
765 ILCS 605/18 from Ch. 30, par. 318

Amends the Condominium Property Act. Provides that upon request, any person who makes payments for common expenses shall be furnished a copy of any legally binding agreements between the unit owners' association and each management company retained by the association. Effective immediately.
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A BILL FOR

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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 Condominium Property Act is amended by
5changing Section 18 as follows:
6 (765 ILCS 605/18) (from Ch. 30, par. 318)
7 Sec. 18. Contents of bylaws. The bylaws shall provide for
8at least the following:
9 (a)(1) The election from among the unit owners of a board
10of managers, the number of persons constituting such board, and
11that the terms of at least one-third of the members of the
12board shall expire annually and that all members of the board
13shall be elected at large. If there are multiple owners of a
14single unit, only one of the multiple owners shall be eligible
15to serve as a member of the board at any one time.
16 (2) the powers and duties of the board;
17 (3) the compensation, if any, of the members of the board;
18 (4) the method of removal from office of members of the
19board;
20 (5) that the board may engage the services of a manager or
21managing agent;
22 (6) that each unit owner shall receive, at least 30 days
23prior to the adoption thereof by the board of managers, a copy

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1of the proposed annual budget together with an indication of
2which portions are intended for reserves, capital expenditures
3or repairs or payment of real estate taxes;
4 (7) that the board of managers shall annually supply to all
5unit owners an itemized accounting of the common expenses for
6the preceding year actually incurred or paid, together with an
7indication of which portions were for reserves, capital
8expenditures or repairs or payment of real estate taxes and
9with a tabulation of the amounts collected pursuant to the
10budget or assessment, and showing the net excess or deficit of
11income over expenditures plus reserves;
12 (8)(i) that each unit owner shall receive notice, in the
13same manner as is provided in this Act for membership meetings,
14of any meeting of the board of managers concerning the adoption
15of the proposed annual budget and regular assessments pursuant
16thereto or to adopt a separate (special) assessment, (ii) that
17except as provided in subsection (iv) below, if an adopted
18budget or any separate assessment adopted by the board would
19result in the sum of all regular and separate assessments
20payable in the current fiscal year exceeding 115% of the sum of
21all regular and separate assessments payable during the
22preceding fiscal year, the board of managers, upon written
23petition by unit owners with 20 percent of the votes of the
24association delivered to the board within 14 days of the board
25action, shall call a meeting of the unit owners within 30 days
26of the date of delivery of the petition to consider the budget

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1or separate assessment; unless a majority of the total votes of
2the unit owners are cast at the meeting to reject the budget or
3separate assessment, it is ratified, (iii) that any common
4expense not set forth in the budget or any increase in
5assessments over the amount adopted in the budget shall be
6separately assessed against all unit owners, (iv) that separate
7assessments for expenditures relating to emergencies or
8mandated by law may be adopted by the board of managers without
9being subject to unit owner approval or the provisions of item
10(ii) above or item (v) below. As used herein, "emergency" means
11an immediate danger to the structural integrity of the common
12elements or to the life, health, safety or property of the unit
13owners, (v) that assessments for additions and alterations to
14the common elements or to association-owned property not
15included in the adopted annual budget, shall be separately
16assessed and are subject to approval of two-thirds of the total
17votes of all unit owners, (vi) that the board of managers may
18adopt separate assessments payable over more than one fiscal
19year. With respect to multi-year assessments not governed by
20items (iv) and (v), the entire amount of the multi-year
21assessment shall be deemed considered and authorized in the
22first fiscal year in which the assessment is approved;
23 (9) that meetings of the board of managers shall be open to
24any unit owner, except for the portion of any meeting held (i)
25to discuss litigation when an action against or on behalf of
26the particular association has been filed and is pending in a

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1court or administrative tribunal, or when the board of managers
2finds that such an action is probable or imminent, (ii) to
3consider information regarding appointment, employment or
4dismissal of an employee, or (iii) to discuss violations of
5rules and regulations of the association or a unit owner's
6unpaid share of common expenses; that any vote on these matters
7shall be taken at a meeting or portion thereof open to any unit
8owner; that any unit owner may record the proceedings at
9meetings or portions thereof required to be open by this Act by
10tape, film or other means; that the board may prescribe
11reasonable rules and regulations to govern the right to make
12such recordings, that notice of such meetings shall be mailed
13or delivered at least 48 hours prior thereto, unless a written
14waiver of such notice is signed by the person or persons
15entitled to such notice pursuant to the declaration, bylaws,
16other condominium instrument, or provision of law other than
17this subsection before the meeting is convened, and that copies
18of notices of meetings of the board of managers shall be posted
19in entranceways, elevators, or other conspicuous places in the
20condominium at least 48 hours prior to the meeting of the board
21of managers except where there is no common entranceway for 7
22or more units, the board of managers may designate one or more
23locations in the proximity of these units where the notices of
24meetings shall be posted;
25 (10) that the board shall meet at least 4 times annually;
26 (11) that no member of the board or officer shall be

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1elected for a term of more than 2 years, but that officers and
2board members may succeed themselves;
3 (12) the designation of an officer to mail and receive all
4notices and execute amendments to condominium instruments as
5provided for in this Act and in the condominium instruments;
6 (13) the method of filling vacancies on the board which
7shall include authority for the remaining members of the board
8to fill the vacancy by two-thirds vote until the next annual
9meeting of unit owners or for a period terminating no later
10than 30 days following the filing of a petition signed by unit
11owners holding 20% of the votes of the association requesting a
12meeting of the unit owners to fill the vacancy for the balance
13of the term, and that a meeting of the unit owners shall be
14called for purposes of filling a vacancy on the board no later
15than 30 days following the filing of a petition signed by unit
16owners holding 20% of the votes of the association requesting
17such a meeting, and the method of filling vacancies among the
18officers that shall include the authority for the members of
19the board to fill the vacancy for the unexpired portion of the
20term;
21 (14) what percentage of the board of managers, if other
22than a majority, shall constitute a quorum;
23 (15) provisions concerning notice of board meetings to
24members of the board;
25 (16) the board of managers may not enter into a contract
26with a current board member or with a corporation or

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1partnership in which a board member or a member of the board
2member's immediate family has 25% or more interest, unless
3notice of intent to enter the contract is given to unit owners
4within 20 days after a decision is made to enter into the
5contract and the unit owners are afforded an opportunity by
6filing a petition, signed by 20% of the unit owners, for an
7election to approve or disapprove the contract; such petition
8shall be filed within 20 days after such notice and such
9election shall be held within 30 days after filing the
10petition; for purposes of this subsection, a board member's
11immediate family means the board member's spouse, parents, and
12children;
13 (17) that the board of managers may disseminate to unit
14owners biographical and background information about
15candidates for election to the board if (i) reasonable efforts
16to identify all candidates are made and all candidates are
17given an opportunity to include biographical and background
18information in the information to be disseminated; and (ii) the
19board does not express a preference in favor of any candidate;
20 (18) any proxy distributed for board elections by the board
21of managers gives unit owners the opportunity to designate any
22person as the proxy holder, and gives the unit owner the
23opportunity to express a preference for any of the known
24candidates for the board or to write in a name;
25 (19) that special meetings of the board of managers can be
26called by the president or 25% of the members of the board; and

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1 (20) that the board of managers may establish and maintain
2a system of master metering of public utility services and
3collect payments in connection therewith, subject to the
4requirements of the Tenant Utility Payment Disclosure Act.
5 (b)(1) What percentage of the unit owners, if other than
620%, shall constitute a quorum provided that, for condominiums
7with 20 or more units, the percentage of unit owners
8constituting a quorum shall be 20% unless the unit owners
9holding a majority of the percentage interest in the
10association provide for a higher percentage, provided that in
11voting on amendments to the association's bylaws, a unit owner
12who is in arrears on the unit owner's regular or separate
13assessments for 60 days or more, shall not be counted for
14purposes of determining if a quorum is present, but that unit
15owner retains the right to vote on amendments to the
16association's bylaws;
17 (2) that the association shall have one class of
18membership;
19 (3) that the members shall hold an annual meeting, one of
20the purposes of which shall be to elect members of the board of
21managers;
22 (4) the method of calling meetings of the unit owners;
23 (5) that special meetings of the members can be called by
24the president, board of managers, or by 20% of unit owners;
25 (6) that written notice of any membership meeting shall be
26mailed or delivered giving members no less than 10 and no more

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1than 30 days notice of the time, place and purpose of such
2meeting except that notice may be sent, to the extent the
3condominium instruments or rules adopted thereunder expressly
4so provide, by electronic transmission consented to by the unit
5owner to whom the notice is given, provided the director and
6officer or his agent certifies in writing to the delivery by
7electronic transmission;
8 (7) that voting shall be on a percentage basis, and that
9the percentage vote to which each unit is entitled is the
10percentage interest of the undivided ownership of the common
11elements appurtenant thereto, provided that the bylaws may
12provide for approval by unit owners in connection with matters
13where the requisite approval on a percentage basis is not
14specified in this Act, on the basis of one vote per unit;
15 (8) that, where there is more than one owner of a unit, if
16only one of the multiple owners is present at a meeting of the
17association, he is entitled to cast all the votes allocated to
18that unit, if more than one of the multiple owners are present,
19the votes allocated to that unit may be cast only in accordance
20with the agreement of a majority in interest of the multiple
21owners, unless the declaration expressly provides otherwise,
22that there is majority agreement if any one of the multiple
23owners cast the votes allocated to that unit without protest
24being made promptly to the person presiding over the meeting by
25any of the other owners of the unit;
26 (9)(A) except as provided in subparagraph (B) of this

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1paragraph (9) in connection with board elections, that a unit
2owner may vote by proxy executed in writing by the unit owner
3or by his duly authorized attorney in fact; that the proxy must
4bear the date of execution and, unless the condominium
5instruments or the written proxy itself provide otherwise, is
6invalid after 11 months from the date of its execution; to the
7extent the condominium instruments or rules adopted thereunder
8expressly so provide, a vote or proxy may be submitted by
9electronic transmission, provided that any such electronic
10transmission shall either set forth or be submitted with
11information from which it can be determined that the electronic
12transmission was authorized by the unit owner or the unit
13owner's proxy;
14 (B) that if a rule adopted at least 120 days before a board
15election or the declaration or bylaws provide for balloting as
16set forth in this subsection, unit owners may not vote by proxy
17in board elections, but may vote only (i) by submitting an
18association-issued ballot in person at the election meeting or
19(ii) by submitting an association-issued ballot to the
20association or its designated agent by mail or other means of
21delivery specified in the declaration, bylaws, or rule; that
22the ballots shall be mailed or otherwise distributed to unit
23owners not less than 10 and not more than 30 days before the
24election meeting, and the board shall give unit owners not less
25than 21 days' prior written notice of the deadline for
26inclusion of a candidate's name on the ballots; that the

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1deadline shall be no more than 7 days before the ballots are
2mailed or otherwise distributed to unit owners; that every such
3ballot must include the names of all candidates who have given
4the board or its authorized agent timely written notice of
5their candidacy and must give the person casting the ballot the
6opportunity to cast votes for candidates whose names do not
7appear on the ballot; that a ballot received by the association
8or its designated agent after the close of voting shall not be
9counted; that a unit owner who submits a ballot by mail or
10other means of delivery specified in the declaration, bylaws,
11or rule may request and cast a ballot in person at the election
12meeting, and thereby void any ballot previously submitted by
13that unit owner;
14 (B-5) that if a rule adopted at least 120 days before a
15board election or the declaration or bylaws provide for
16balloting as set forth in this subparagraph, unit owners may
17not vote by proxy in board elections, but may vote only (i) by
18submitting an association-issued ballot in person at the
19election meeting; or (ii) by any acceptable technological means
20as defined in Section 2 of this Act; instructions regarding the
21use of electronic means for voting shall be distributed to all
22unit owners not less than 10 and not more than 30 days before
23the election meeting, and the board shall give unit owners not
24less than 21 days' prior written notice of the deadline for
25inclusion of a candidate's name on the ballots; the deadline
26shall be no more than 7 days before the instructions for voting

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1using electronic or acceptable technological means is
2distributed to unit owners; every instruction notice must
3include the names of all candidates who have given the board or
4its authorized agent timely written notice of their candidacy
5and must give the person voting through electronic or
6acceptable technological means the opportunity to cast votes
7for candidates whose names do not appear on the ballot; a unit
8owner who submits a vote using electronic or acceptable
9technological means may request and cast a ballot in person at
10the election meeting, thereby voiding any vote previously
11submitted by that unit owner;
12 (C) that if a written petition by unit owners with at least
1320% of the votes of the association is delivered to the board
14within 14 days after the board's approval of a rule adopted
15pursuant to subparagraph (B) or subparagraph (B-5) of this
16paragraph (9), the board shall call a meeting of the unit
17owners within 30 days after the date of delivery of the
18petition; that unless a majority of the total votes of the unit
19owners are cast at the meeting to reject the rule, the rule is
20ratified;
21 (D) that votes cast by ballot under subparagraph (B) or
22electronic or acceptable technological means under
23subparagraph (B-5) of this paragraph (9) are valid for the
24purpose of establishing a quorum;
25 (10) that the association may, upon adoption of the
26appropriate rules by the board of managers, conduct elections

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1by secret ballot whereby the voting ballot is marked only with
2the percentage interest for the unit and the vote itself,
3provided that the board further adopt rules to verify the
4status of the unit owner issuing a proxy or casting a ballot;
5and further, that a candidate for election to the board of
6managers or such candidate's representative shall have the
7right to be present at the counting of ballots at such
8election;
9 (11) that in the event of a resale of a condominium unit
10the purchaser of a unit from a seller other than the developer
11pursuant to an installment contract for purchase shall during
12such times as he or she resides in the unit be counted toward a
13quorum for purposes of election of members of the board of
14managers at any meeting of the unit owners called for purposes
15of electing members of the board, shall have the right to vote
16for the election of members of the board of managers and to be
17elected to and serve on the board of managers unless the seller
18expressly retains in writing any or all of such rights. In no
19event may the seller and purchaser both be counted toward a
20quorum, be permitted to vote for a particular office or be
21elected and serve on the board. Satisfactory evidence of the
22installment contact shall be made available to the association
23or its agents. For purposes of this subsection, "installment
24contact" shall have the same meaning as set forth in Section 1
25(e) of "An Act relating to installment contracts to sell
26dwelling structures", approved August 11, 1967, as amended;

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1 (12) the method by which matters subject to the approval of
2unit owners set forth in this Act, or in the condominium
3instruments, will be submitted to the unit owners at special
4membership meetings called for such purposes; and
5 (13) that matters subject to the affirmative vote of not
6less than 2/3 of the votes of unit owners at a meeting duly
7called for that purpose, shall include, but not be limited to:
8 (i) merger or consolidation of the association;
9 (ii) sale, lease, exchange, or other disposition
10 (excluding the mortgage or pledge) of all, or substantially
11 all of the property and assets of the association; and
12 (iii) the purchase or sale of land or of units on
13 behalf of all unit owners.
14 (c) Election of a president from among the board of
15managers, who shall preside over the meetings of the board of
16managers and of the unit owners.
17 (d) Election of a secretary from among the board of
18managers, who shall keep the minutes of all meetings of the
19board of managers and of the unit owners and who shall, in
20general, perform all the duties incident to the office of
21secretary.
22 (e) Election of a treasurer from among the board of
23managers, who shall keep the financial records and books of
24account.
25 (f) Maintenance, repair and replacement of the common
26elements and payments therefor, including the method of

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1approving payment vouchers.
2 (g) An association with 30 or more units shall obtain and
3maintain fidelity insurance covering persons who control or
4disburse funds of the association for the maximum amount of
5coverage available to protect funds in the custody or control
6of the association plus the association reserve fund. All
7management companies which are responsible for the funds held
8or administered by the association shall maintain and furnish
9to the association a fidelity bond for the maximum amount of
10coverage available to protect funds in the custody of the
11management company at any time. The association shall bear the
12cost of the fidelity insurance and fidelity bond, unless
13otherwise provided by contract between the association and a
14management company. The association shall be the direct obligee
15of any such fidelity bond. A management company holding reserve
16funds of an association shall at all times maintain a separate
17account for each association, provided, however, that for
18investment purposes, the Board of Managers of an association
19may authorize a management company to maintain the
20association's reserve funds in a single interest bearing
21account with similar funds of other associations. The
22management company shall at all times maintain records
23identifying all moneys of each association in such investment
24account. The management company may hold all operating funds of
25associations which it manages in a single operating account but
26shall at all times maintain records identifying all moneys of

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1each association in such operating account. Such operating and
2reserve funds held by the management company for the
3association shall not be subject to attachment by any creditor
4of the management company.
5 For the purpose of this subsection a management company
6shall be defined as a person, partnership, corporation, or
7other legal entity entitled to transact business on behalf of
8others, acting on behalf of or as an agent for a unit owner,
9unit owners or association of unit owners for the purpose of
10carrying out the duties, responsibilities, and other
11obligations necessary for the day to day operation and
12management of any property subject to this Act. For purposes of
13this subsection, the term "fiduciary insurance coverage" shall
14be defined as both a fidelity bond and directors and officers
15liability coverage, the fidelity bond in the full amount of
16association funds and association reserves that will be in the
17custody of the association, and the directors and officers
18liability coverage at a level as shall be determined to be
19reasonable by the board of managers, if not otherwise
20established by the declaration or by laws.
21 Until one year after the effective date of this amendatory
22Act of 1985, if a condominium association has reserves plus
23assessments in excess of $250,000 and cannot reasonably obtain
24100% fidelity bond coverage for such amount, then it must
25obtain a fidelity bond coverage of $250,000.
26 (h) Method of estimating the amount of the annual budget,

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1and the manner of assessing and collecting from the unit owners
2their respective shares of such estimated expenses, and of any
3other expenses lawfully agreed upon.
4 (i) That upon 10 days notice to the manager or board of
5managers and payment of a reasonable fee, any unit owner shall
6be furnished a statement of his account setting forth the
7amount of any unpaid assessments or other charges due and owing
8from such owner.
9 (j) Designation and removal of personnel necessary for the
10maintenance, repair and replacement of the common elements.
11 (k) Such restrictions on and requirements respecting the
12use and maintenance of the units and the use of the common
13elements, not set forth in the declaration, as are designed to
14prevent unreasonable interference with the use of their
15respective units and of the common elements by the several unit
16owners.
17 (l) Method of adopting and of amending administrative rules
18and regulations governing the operation and use of the common
19elements.
20 (m) The percentage of votes required to modify or amend the
21bylaws, but each one of the particulars set forth in this
22section shall always be embodied in the bylaws.
23 (n)(i) The provisions of this Act, the declaration, bylaws,
24other condominium instruments, and rules and regulations that
25relate to the use of the individual unit or the common elements
26shall be applicable to any person leasing a unit and shall be

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1deemed to be incorporated in any lease executed or renewed on
2or after the effective date of this amendatory Act of 1984.
3(ii) With regard to any lease entered into subsequent to the
4effective date of this amendatory Act of 1989, the unit owner
5leasing the unit shall deliver a copy of the signed lease to
6the board or if the lease is oral, a memorandum of the lease,
7not later than the date of occupancy or 10 days after the lease
8is signed, whichever occurs first. In addition to any other
9remedies, by filing an action jointly against the tenant and
10the unit owner, an association may seek to enjoin a tenant from
11occupying a unit or seek to evict a tenant under the provisions
12of Article IX of the Code of Civil Procedure for failure of the
13lessor-owner to comply with the leasing requirements
14prescribed by this Section or by the declaration, bylaws, and
15rules and regulations. The board of managers may proceed
16directly against a tenant, at law or in equity, or under the
17provisions of Article IX of the Code of Civil Procedure, for
18any other breach by tenant of any covenants, rules, regulations
19or bylaws.
20 (o) The association shall have no authority to forbear the
21payment of assessments by any unit owner.
22 (p) That when 30% or fewer of the units, by number, possess
23over 50% in the aggregate of the votes in the association, any
24percentage vote of members specified herein or in the
25condominium instruments shall require the specified percentage
26by number of units rather than by percentage of interest in the

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1common elements allocated to units that would otherwise be
2applicable and garage units or storage units, or both, shall
3have, in total, no more votes than their aggregate percentage
4of ownership in the common elements; this shall mean that if
5garage units or storage units, or both, are to be given a vote,
6or portion of a vote, that the association must add the total
7number of votes cast of garage units, storage units, or both,
8and divide the total by the number of garage units, storage
9units, or both, and multiply by the aggregate percentage of
10ownership of garage units and storage units to determine the
11vote, or portion of a vote, that garage units or storage units,
12or both, have. For purposes of this subsection (p), when making
13a determination of whether 30% or fewer of the units, by
14number, possess over 50% in the aggregate of the votes in the
15association, a unit shall not include a garage unit or a
16storage unit.
17 (q) That a unit owner may not assign, delegate, transfer,
18surrender, or avoid the duties, responsibilities, and
19liabilities of a unit owner under this Act, the condominium
20instruments, or the rules and regulations of the Association;
21and that such an attempted assignment, delegation, transfer,
22surrender, or avoidance shall be deemed void.
23 (r) That upon request, any person who makes payments for
24common expenses shall be furnished a copy of any legally
25binding agreements between the association and each management
26company retained by the association.

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1 The provisions of this Section are applicable to all
2condominium instruments recorded under this Act. Any portion of
3a condominium instrument which contains provisions contrary to
4these provisions shall be void as against public policy and
5ineffective. Any such instrument which fails to contain the
6provisions required by this Section shall be deemed to
7incorporate such provisions by operation of law.
8(Source: P.A. 98-1042, eff. 1-1-15.)
9 Section 99. Effective date. This Act takes effect upon
10becoming law.