Public Act 099-0041

SB1374 Enrolled LRB099 05853 HEP 25897 b

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 5. The Code of Civil Procedure is amended by

changing Section 9-102 as follows:

(735 ILCS 5/9-102) (from Ch. 110, par. 9-102)

Sec. 9-102. When action may be maintained.

(a) The person entitled to the possession of lands or

tenements may be restored thereto under any of the following

circumstances:

(1) When a forcible entry is made thereon.

(2) When a peaceable entry is made and the possession

unlawfully withheld.

(3) When entry is made into vacant or unoccupied lands

or tenements without right or title.

(4) When any lessee of the lands or tenements, or any

person holding under such lessee, holds possession without

right after the termination of the lease or tenancy by its

own limitation, condition or terms, or by notice to quit or

otherwise.

(5) When a vendee having obtained possession under a

written or verbal agreement to purchase lands or tenements,

and having failed to comply with the agreement, withholds

possession thereof, after demand in writing by the person

entitled to such possession; provided, however, that any

such agreement for residential real estate as defined in

the Illinois Mortgage Foreclosure Law entered into on or

after July 1, 1987 where the purchase price is to be paid

in installments over a period in excess of 5 years and the

amount unpaid under the terms of the contract at the time

of the filing of a foreclosure complaint under Article XV,

including principal and due and unpaid interest, is less

than 80% of the original purchase price shall be foreclosed

under the Illinois Mortgage Foreclosure Law.

This amendatory Act of 1993 is declarative of existing

law.

(6) When lands or tenements have been conveyed by any

grantor in possession, or sold under the order or judgment

of any court in this State, or by virtue of any sale in any

mortgage or deed of trust contained and the grantor in

possession or party to such order or judgment or to such

mortgage or deed of trust, after the expiration of the time

of redemption, when redemption is allowed by law, refuses

or neglects to surrender possession thereof, after demand

in writing by the person entitled thereto, or his or her

agent.

(7) When any property is subject to the provisions of

the Condominium Property Act, the owner of a unit fails or

refuses to pay when due his or her proportionate share of

the common expenses of such property, or of any other

expenses lawfully agreed upon or any unpaid fine, the Board

of Managers or its agents have served the demand set forth

in Section 9-104.1 of this Article in the manner provided

for in that Section and the unit owner has failed to pay

the amount claimed within the time prescribed in the

demand; or if the lessor-owner of a unit fails to comply

with the leasing requirements prescribed by subsection (n)

of Section 18 of the Condominium Property Act or by the

declaration, by-laws, and rules and regulations of the

condominium, or if a lessee of an owner is in breach of any

covenants, rules, regulations, or by-laws of the

condominium, and the Board of Managers or its agents have

served the demand set forth in Section 9-104.2 of this

Article in the manner provided in that Section.

(8) When any property is subject to the provisions of a

declaration establishing a common interest community and

requiring the unit owner to pay regular or special

assessments for the maintenance or repair of common areas

owned in common by all of the owners of the common interest

community or by the community association and maintained

for the use of the unit owners or of any other expenses of

the association lawfully agreed upon, and the unit owner

fails or refuses to pay when due his or her proportionate

share of such assessments or expenses and the board or its

agents have served the demand set forth in Section 9-104.1

of this Article in the manner provided for in that Section

and the unit owner has failed to pay the amount claimed

within the time prescribed in the demand.

(b) The provisions of paragraph (8) of subsection (a) of

Section 9-102 and Section 9-104.3 of this Act shall not apply

to any common interest community unless (1) the association is

a not-for-profit corporation or a limited liability company,

(2) unit owners are authorized to attend meetings of the board

of directors or board of managers of the association in the

same manner as provided for condominiums under the Condominium

Property Act, and (3) the board of managers or board of

directors of the common interest community association has,

subsequent to the effective date of this amendatory Act of 1984

voted to have the provisions of this Article apply to such

association and has delivered or mailed notice of such action

to the unit owners or unless the declaration of the association

is recorded after the effective date of this amendatory Act of

1985.

(c) For purposes of this Article:

(1) "Common interest community" means real estate

other than a condominium or cooperative with respect to

which any person by virtue of his or her ownership of a

partial interest or unit therein is obligated to pay for

maintenance, improvement, insurance premiums, or real

estate taxes of other real estate described in a

declaration which is administered by an association.

(2) "Declaration" means any duly recorded instruments,

however designated, that have created a common interest

community and any duly recorded amendments to those

instruments.

(3) "Unit" means a physical portion of the common

interest community designated by separate ownership or

occupancy by boundaries which are described in a

declaration.

(4) "Unit owners' association" or "association" means

the association of all owners of units in the common

interest community acting pursuant to the declaration.

(d) If the board of a common interest community elects to

have the provisions of this Article apply to such association

or the declaration of the association is recorded after the

effective date of this amendatory Act of 1985, the provisions

of subsections (c) through (h) of Section 18.5 of the

Condominium Property Act applicable to a Master Association and

condominium unit subject to such association under subsections

(c) through (h) of Section 18.5 shall be applicable to the

community associations and to its unit owners.

(Source: P.A. 88-47; 89-41, eff. 6-23-95; 89-626, eff. 8-9-96.)

Section 10. The Common Interest Community Association Act

is amended by changing Sections 1-5, 1-20, 1-25, 1-30, and 1-50

as follows:

(765 ILCS 160/1-5)

Sec. 1-5. Definitions. As used in this Act, unless the

context otherwise requires:

"Acceptable technological means" includes, without

limitation, electronic transmission over the Internet or other

network, whether by direct connection, intranet, telecopier,

or electronic mail.

"Association" or "common interest community association"

means the association of all the members of a common interest

community, acting pursuant to bylaws or an operating agreement

through its duly elected board of managers or board of

directors.

"Board" means a common interest community association's

board of managers or board of directors, whichever is

applicable.

"Board member" or "member of the board" means a member of

the board of managers or the board of directors, whichever is

applicable.

"Board of directors" means, for a common interest community

that has been incorporated as an Illinois not-for-profit

corporation, the group of people elected by the members of a

common interest community as the governing body to exercise for

the members of the common interest community association all

powers, duties, and authority vested in the board of directors

under this Act and the common interest community association's

declaration and bylaws.

"Board of managers" means, for a common interest community

that is an unincorporated association or organized as a limited

liability company, the group of people elected by the members

of a common interest community as the governing body to

exercise for the members of the common interest community

association all powers, duties, and authority vested in the

board of managers under this Act and the common interest

community association's declaration, and bylaws, or operating

agreement.

"Building" means all structures, attached or unattached,

containing one or more units.

"Common areas" means the portion of the property other than

a unit.

"Common expenses" means the proposed or actual expenses

affecting the property, including reserves, if any, lawfully

assessed by the common interest community association.

"Common interest community" means real estate other than a

condominium or cooperative with respect to which any person by

virtue of his or her ownership of a partial interest or a unit

therein is obligated to pay for the maintenance, improvement,

insurance premiums or real estate taxes of common areas

described in a declaration which is administered by an

association. "Common interest community" may include, but not

be limited to, an attached or detached townhome, villa, or

single-family home. A "common interest community" does not

include a master association.

"Community instruments" means all documents and authorized

amendments thereto recorded by a developer or common interest

community association, including, but not limited to, the

declaration, bylaws, operating agreement, plat of survey, and

rules and regulations.

"Declaration" means any duly recorded instruments, however

designated, that have created a common interest community and

any duly recorded amendments to those instruments.

"Developer" means any person who submits property legally

or equitably owned in fee simple by the person to the

provisions of this Act, or any person who offers units legally

or equitably owned in fee simple by the person for sale in the

ordinary course of such person's business, including any

successor to such person's entire interest in the property

other than the purchaser of an individual unit.

"Developer control" means such control at a time prior to

the election of the board of the common interest community

association by a majority of the members other than the

developer.

"Electronic transmission" means any form of communication,

not directly involving the physical transmission of paper, that

creates a record that may be retained, retrieved, and reviewed

by a recipient and that may be directly reproduced in paper

form by the recipient through an automated process.

"Majority" or "majority of the members" means the owners of

more than 50% in the aggregate in interest of the undivided

ownership of the common elements. Any specified percentage of

the members means such percentage in the aggregate in interest

of such undivided ownership. "Majority" or "majority of the

members of the board of the common interest community

association" means more than 50% of the total number of persons

constituting such board pursuant to the bylaws or operating

agreement. Any specified percentage of the members of the

common interest community association means that percentage of

the total number of persons constituting such board pursuant to

the bylaws or operating agreement.

"Management company" or "community association manager"

means a person, partnership, corporation, or other legal entity

entitled to transact business on behalf of others, acting on

behalf of or as an agent for an association for the purpose of

carrying out the duties, responsibilities, and other

obligations necessary for the day to day operation and

management of any property subject to this Act.

"Meeting of the board" or "board meeting" means any

gathering of a quorum of the members of the board of the common

interest community association held for the purpose of

conducting board business.

"Member" means the person or entity designated as an owner

and entitled to one vote as defined by the community

instruments. The terms "member" and "unit owner" may be used

interchangeably as defined by the community instruments,

except in situations in which a matter of legal title to the

unit is involved or at issue, in which case the term "unit

owner" would be the applicable term used.

"Membership" means the collective group of members

entitled to vote as defined by the community instruments.

"Parcel" means the lot or lots or tract or tracts of land

described in the declaration as part of a common interest

community.

"Person" means a natural individual, corporation,

partnership, trustee, or other legal entity capable of holding

title to real property.

"Plat" means a plat or plats of survey of the parcel and of

all units in the common interest community, which may consist

of a three-dimensional horizontal and vertical delineation of

all such units, structures, easements, and common areas on the

property.

"Prescribed delivery method" means mailing, delivering,

posting in an association publication that is routinely mailed

to all members, electronic transmission, or any other delivery

method that is approved in writing by the member and authorized

by the community instruments.

"Property" means all the land, property, and space

comprising the parcel, all improvements and structures

erected, constructed or contained therein or thereon,

including any building and all easements, rights, and

appurtenances belonging thereto, and all fixtures and

equipment intended for the mutual use, benefit, or enjoyment of

the members, under the authority or control of a common

interest community association.

"Purchaser" means any person or persons, other than the

developer, who purchase a unit in a bona fide transaction for

value.

"Record" means to record in the office of the recorder of

the county wherein the property is located.

"Reserves" means those sums paid by members which are

separately maintained by the common interest community

association for purposes specified by the declaration and

bylaws of the common interest community association.

"Unit" means a part of the property designed and intended

for any type of independent use.

"Unit owner" means the person or persons whose estates or

interests, individually or collectively, aggregate fee simple

absolute ownership of a unit.

(Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12;

98-1042, eff. 1-1-15.)

(765 ILCS 160/1-20)

Sec. 1-20. Amendments to the declaration, or bylaws, or

operating agreement.

(a) The administration of every property shall be governed

by the declaration and bylaws or operating agreement, which may

either be embodied in the declaration or in a separate

instrument, a true copy of which shall be appended to and

recorded with the declaration. No modification or amendment of

the declaration, or bylaws, or operating agreement shall be

valid unless the same is set forth in an amendment thereof and

such amendment is duly recorded. An amendment of the

declaration, or bylaws, or operating agreement shall be deemed

effective upon recordation, unless the amendment sets forth a

different effective date.

(b) Unless otherwise provided by this Act, amendments to

community instruments authorized to be recorded shall be

executed and recorded by the president of the board or such

other officer authorized by the common interest community

association or the community instruments.

(c) If an association that currently permits leasing amends

its declaration, bylaws, or rules and regulations to prohibit

leasing, nothing in this Act or the declarations, bylaws, rules

and regulations of an association shall prohibit a unit owner

incorporated under 26 USC 501(c)(3) which is leasing a unit at

the time of the prohibition from continuing to do so until such

time that the unit owner voluntarily sells the unit; and no

special fine, fee, dues, or penalty shall be assessed against

the unit owner for leasing its unit.

(d) No action to incorporate a common interest community as

a municipality shall commence until an instrument agreeing to

incorporation has been signed by two-thirds of the members.

(Source: P.A. 96-1400, eff. 7-29-10; 97-605, eff. 8-26-11;

97-1090, eff. 8-24-12.)

(765 ILCS 160/1-25)

Sec. 1-25. Board of managers, board of directors, duties,

elections, and voting.

(a) Elections shall be held in accordance with the

community instruments, provided that an election shall be held

no less frequently than once every 24 months, for the board of

managers or board of directors from among the membership of a

common interest community association.

(b) (Blank).

(c) The members of the board shall serve without

compensation, unless the community instruments indicate

otherwise.

(d) No member of the board or officer shall be elected for

a term of more than 4 years, but officers and board members may

succeed themselves.

(e) If there is a vacancy on the board, the remaining

members of the board may fill the vacancy by a two-thirds vote

of the remaining board members until the next annual meeting of

the membership or until members holding 20% of the votes of the

association request a meeting of the members to fill the

vacancy for the balance of the term. A meeting of the members

shall be called for purposes of filling a vacancy on the board

no later than 30 days following the filing of a petition signed

by membership holding 20% of the votes of the association

requesting such a meeting.

(f) There shall be an election of a:

(1) president from among the members of the board, who

shall preside over the meetings of the board and of the

membership;

(2) secretary from among the members of the board, who

shall keep the minutes of all meetings of the board and of

the membership and who shall, in general, perform all the

duties incident to the office of secretary; and

(3) treasurer from among the members of the board, who

shall keep the financial records and books of account.

(g) If no election is held to elect board members within

the time period specified in the bylaws, or within a reasonable

amount of time thereafter not to exceed 90 days, then 20% of

the members may bring an action to compel compliance with the

election requirements specified in the bylaws or operating

agreement. If the court finds that an election was not held to

elect members of the board within the required period due to

the bad faith acts or omissions of the board of managers or the

board of directors, the members shall be entitled to recover

their reasonable attorney's fees and costs from the

association. If the relevant notice requirements have been met

and an election is not held solely due to a lack of a quorum,

then this subsection (g) does not apply.

(h) Where there is more than one owner of a unit and there

is only one member vote associated with that unit, if only one

of the multiple owners is present at a meeting of the

membership, he or she is entitled to cast the member vote

associated with that unit.

(h-5) A member may vote:

(1) by proxy executed in writing by the member or by

his or her duly authorized attorney in fact, provided,

however, that the proxy bears the date of execution. Unless

the community instruments or the written proxy itself

provide otherwise, proxies will not be valid for more than

11 months after the date of its execution; or

(2) by submitting an association-issued ballot in

person at the election meeting; or

(3) by submitting an association-issued ballot to the

association or its designated agent by mail or other means

of delivery specified in the declaration or bylaws; or

(4) by any electronic or acceptable technological

means.

Votes cast under any paragraph of this subsection (h-5) are

valid for the purpose of establishing a quorum.

(i) The association may, upon adoption of the appropriate

rules by the board, conduct elections by electronic or

acceptable technological means. Members may not vote by proxy

in board elections. Instructions regarding the use of

electronic means or acceptable technological means for voting

shall be distributed to all members not less than 10 and not

more than 30 days before the election meeting. The instruction

notice must include the names of all candidates who have given

the board or its authorized agent timely written notice of

their candidacy and must give the person voting through

electronic or acceptable technological means the opportunity

to cast votes for candidates whose names do not appear on the

ballot. The board rules shall provide and the instructions

provided to the member shall state that a member who submits a

vote using electronic or acceptable technological means may

request and cast a ballot in person at the election meeting,

and thereby void any vote previously submitted by that member.

(j) Upon proof of purchase, the purchaser of a unit from a

seller other than the developer pursuant to an installment

contract for purchase shall, during such times as he or she

resides in the unit, be counted toward a quorum for purposes of

election of members of the board at any meeting of the

membership called for purposes of electing members of the

board, shall have the right to vote for the members of the

board of the common interest community association and to be

elected to and serve on the board unless the seller expressly

retains in writing any or all of such rights.

(Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12;

98-1042, eff. 1-1-15.)

(765 ILCS 160/1-30)

Sec. 1-30. Board duties and obligations; records.

(a) The board shall meet at least 4 times annually.

(b) A common interest community association may not enter

into a contract with a current board member, or with a

corporation, limited liability company, or partnership in

which a board member or a member of his or her immediate family

has 25% or more interest, unless notice of intent to enter into

the contract is given to members within 20 days after a

decision is made to enter into the contract and the members are

afforded an opportunity by filing a petition, signed by 20% of

the membership, for an election to approve or disapprove the

contract; such petition shall be filed within 20 days after

such notice and such election shall be held within 30 days

after filing the petition. For purposes of this subsection, a

board member's immediate family means the board member's

spouse, parents, siblings, and children.

(c) The bylaws or operating agreement shall provide for the

maintenance, repair, and replacement of the common areas and

payments therefor, including the method of approving payment

vouchers.

(d) (Blank).

(e) The association may engage the services of a manager or

management company.

(f) The association shall have one class of membership

unless the declaration, or bylaws, or operating agreement

provide otherwise; however, this subsection (f) shall not be

construed to limit the operation of subsection (c) of Section

1-20 of this Act.

(g) The board shall have the power, after notice and an

opportunity to be heard, to levy and collect reasonable fines

from members or unit owners for violations of the declaration,

bylaws, operating agreement, and rules and regulations of the

common interest community association.

(h) Other than attorney's fees and court or arbitration

costs, no fees pertaining to the collection of a member's or

unit owner's financial obligation to the association,

including fees charged by a manager or managing agent, shall be

added to and deemed a part of a member's or unit owner's

respective share of the common expenses unless: (i) the

managing agent fees relate to the costs to collect common

expenses for the association; (ii) the fees are set forth in a

contract between the managing agent and the association; and

(iii) the authority to add the management fees to a member's or

unit owner's respective share of the common expenses is

specifically stated in the declaration, or bylaws, or operating

agreement of the association.

(i) Board records.

(1) The board shall maintain the following records of

the association and make them available for examination and

copying at convenient hours of weekdays by any member or

unit owner in a common interest community subject to the

authority of the board, their mortgagees, and their duly

authorized agents or attorneys:

(i) Copies of the recorded declaration, other

community instruments, other duly recorded covenants

and bylaws and any amendments, articles of

incorporation, articles of organization, annual

reports, and any rules and regulations adopted by the

board shall be available. Prior to the organization of

the board, the developer shall maintain and make

available the records set forth in this paragraph (i)

for examination and copying.

(ii) Detailed and accurate records in

chronological order of the receipts and expenditures

affecting the common areas, specifying and itemizing

the maintenance and repair expenses of the common areas

and any other expenses incurred, and copies of all

contracts, leases, or other agreements entered into by

the board shall be maintained.

(iii) The minutes of all meetings of the board

which shall be maintained for not less than 7 years.

(iv) With a written statement of a proper purpose,

ballots and proxies related thereto, if any, for any

election held for the board and for any other matters

voted on by the members, which shall be maintained for

not less than one year.

(v) With a written statement of a proper purpose,

such other records of the board as are available for

inspection by members of a not-for-profit corporation

pursuant to Section 107.75 of the General Not For

Profit Corporation Act of 1986 shall be maintained.

(vi) With respect to units owned by a land trust, a

living trust, or other legal entity, the trustee,

officer, or manager of the entity may designate, in

writing, a person to cast votes on behalf of the member

or unit owner and a designation shall remain in effect

until a subsequent document is filed with the

association.

(2) Where a request for records under this subsection

is made in writing to the board or its agent, failure to

provide the requested record or to respond within 30 days

shall be deemed a denial by the board.

(3) A reasonable fee may be charged by the board for

the cost of retrieving and copying records properly

requested.

(4) If the board fails to provide records properly

requested under paragraph (1) of this subsection (i) within

the time period provided in that paragraph (1), the member

may seek appropriate relief and shall be entitled to an

award of reasonable attorney's fees and costs if the member

prevails and the court finds that such failure is due to

the acts or omissions of the board of managers or the board

of directors.

(j) The board shall have standing and capacity to act in a

representative capacity in relation to matters involving the

common areas or more than one unit, on behalf of the members or

unit owners as their interests may appear.

(Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12;

98-232, eff. 1-1-14; 98-241, eff. 8-9-13; 98-756, eff.

7-16-14.)

(765 ILCS 160/1-50)

Sec. 1-50. Administration of property prior to election of

the initial board of directors.

(a) Until the election of the initial board whose

declaration is recorded on or after the effective date of this

Act, the same rights, titles, powers, privileges, trusts,

duties, and obligations that are vested in or imposed upon the

board by this Act or in the declaration or other duly recorded

covenant shall be held and performed by the developer.

(b) The election of the initial board, whose declaration is

recorded on or after the effective date of this Act, shall be

held not later than 60 days after the conveyance by the

developer of 75% of the units, or 3 years after the recording

of the declaration, whichever is earlier. The developer shall

give at least 21 days' notice of the meeting to elect the

initial board of directors and shall upon request provide to

any member, within 3 working days of the request, the names,

addresses, and weighted vote of each member entitled to vote at

the meeting. Any member shall, upon receipt of the request, be

provided with the same information, within 10 days after the

request, with respect to each subsequent meeting to elect

members of the board of directors.

(c) If the initial board of a common interest community

association whose declaration is recorded on or after the

effective date of this Act is not elected by the time

established in subsection (b), the developer shall continue in

office for a period of 30 days, whereupon written notice of his

or her resignation shall be sent to all of the unit owners or

members.

(d) Within 60 days following the election of a majority of

the board, other than the developer, by members, the developer

shall deliver to the board:

(1) All original documents as recorded or filed

pertaining to the property, its administration, and the

association, such as the declaration, articles of

incorporation, articles of organization, other

instruments, annual reports, minutes, rules and

regulations, and contracts, leases, or other agreements

entered into by the association. If any original documents

are unavailable, a copy may be provided if certified by

affidavit of the developer, or an officer or agent of the

developer, as being a complete copy of the actual document

recorded or filed.

(2) A detailed accounting by the developer, setting

forth the source and nature of receipts and expenditures in

connection with the management, maintenance, and operation

of the property, copies of all insurance policies, and a

list of any loans or advances to the association which are

outstanding.

(3) Association funds, which shall have been at all

times segregated from any other moneys of the developer.

(4) A schedule of all real or personal property,

equipment, and fixtures belonging to the association,

including documents transferring the property, warranties,

if any, for all real and personal property and equipment,

deeds, title insurance policies, and all tax bills.

(5) A list of all litigation, administrative action,

and arbitrations involving the association, any notices of

governmental bodies involving actions taken or which may be

taken concerning the association, engineering and

architectural drawings and specifications as approved by

any governmental authority, all other documents filed with

any other governmental authority, all governmental

certificates, correspondence involving enforcement of any

association requirements, copies of any documents relating

to disputes involving members or unit owners, and originals

of all documents relating to everything listed in this

paragraph.

(6) If the developer fails to fully comply with this

subsection (d) within the 60 days provided and fails to

fully comply within 10 days after written demand mailed by

registered or certified mail to his or her last known

address, the board may bring an action to compel compliance

with this subsection (d). If the court finds that any of

the required deliveries were not made within the required

period, the board shall be entitled to recover its

reasonable attorney's fees and costs incurred from and

after the date of expiration of the 10-day demand.

(e) With respect to any common interest community

association whose declaration is recorded on or after the

effective date of this Act, any contract, lease, or other

agreement made prior to the election of a majority of the board

other than the developer by or on behalf of members or

underlying common interest community association, the

association or the board, which extends for a period of more

than 2 years from the recording of the declaration, shall be

subject to cancellation by more than one-half of the votes of

the members, other than the developer, cast at a special

meeting of members called for that purpose during a period of

90 days prior to the expiration of the 2-year period if the

board is elected by the members, otherwise by more than

one-half of the underlying common interest community

association board. At least 60 days prior to the expiration of

the 2-year period, the board or, if the board is still under

developer control, the developer shall send notice to every

member notifying them of this provision, of what contracts,

leases, and other agreements are affected, and of the procedure

for calling a meeting of the members or for action by the board

for the purpose of acting to terminate such contracts, leases

or other agreements. During the 90-day period the other party

to the contract, lease, or other agreement shall also have the

right of cancellation.

(f) The statute of limitations for any actions in law or

equity that the board may bring shall not begin to run until

the members have elected a majority of the members of the

board.

(Source: P.A. 96-1400, eff. 7-29-10; 97-1090, eff. 8-24-12.)

Section 99. Effective date. This Act takes effect upon

becoming law.