HB 2641 — CONDO ACT-BOARD; EMER ACTIONS

*LRB09907614HEP27745b* HB2641 99THEngrossed GENERALLRB099 ASSEMBLY07614 StateHEP of27745 Illinoisb andAN 2016ACT HB2641concerning bycivil Rep.law.

Kelly M.

Cassidy SYNOPSIS AS INTRODUCED:

ILCS 605/18 from Ch.

30, par.

318 Amends the Condominium Property Act.

Provides that the bylaws of a board of managers of actions taken by the board without a meeting inhe response to an emergency.

Provides that the bylaws shall include specified procedural requirements relating to the ratification and confirmation.

LRB099 07614 HEP 27745 b A BILL FOR HB2641 LRB099 07614 HEP 27745 b AN ACT concerning civil law.

(6) that each unit owner shall receive, at least 30 days prior to the adoption thereof by the board of managers, a copy HB2641 Engrossed - 2 - LRB099 07614 HEP 27745 b of the proposed annual budget together with an indication of which portions are intended for reserves, capital expenditures or repairs or payment of real estate taxes;

(8)(i) that each unit owner shall receive notice, in the same manner as is provided in this Act for membership meetings, of any meeting of the board of managers concerning the adoption of the proposed annual budget and regular assessments pursuant thereto or to adopt a separate (special) assessment, (ii) that except as provided in subsection (iv) below, if an adopted budget or any separate assessment adopted by the board would result in the sum of all regular and separate assessments payable in the current fiscal year exceeding 115% of the sum of all regular and separate assessments payable during the preceding fiscal year, the board of managers, upon written petition by unit owners with 20 percent of the votes of the association delivered to the board within 14 days of the board action, shall call a meeting of the unit owners within 30 days of the date of delivery of the petition to consider the budget HB2641 Engrossed - 3 - LRB099 07614 HEP 27745 b or separate assessment;

(9) that meetings of the board of managers shall be open to any unit owner, except for the portion of any meeting held (i) to discuss litigation when an action against or on behalf of the particular association has been filed and is pending in a HB2641 Engrossed - 4 - LRB099 07614 HEP 27745 b court or administrative tribunal, or when the board of managers finds that such an action is probable or imminent, (ii) to consider information regarding appointment, employment or dismissal of an employee, or (iii) to discuss violations of rules and regulations of the association or a unit owner's unpaid share of common expenses;

(11) that no member of the board or officer shall be HB2641 Engrossed - 5 - LRB099 07614 HEP 27745 b elected for a term of more than 2 years, but that officers and board members may succeed themselves;

(16) the board of managers may not enter into a contract with a current board member or with a corporation or HB2641 Engrossed - 6 - LRB099 07614 HEP 27745 b partnership in which a board member or a member of the board member's immediate family has 25% or more interest, unless notice of intent to enter the contract is given to unit owners within 20 days after a decision is made to enter into the contract and the unit owners are afforded an opportunity by filing a petition, signed by 20% of the unit owners, for an election to approve or disapprove the contract;

and HB2641 Engrossed - 7 - LRB099 07614 HEP 27745 b (20) that the board of managers may establish and maintain a system of master metering of public utility services and collect payments in connection therewith, subject to the requirements of the Tenant Utility Payment Disclosure Act ;

(b)(1) What percentage of the unit owners, if other than HB2641 Engrossed - 8 - LRB099 07614 HEP 27745 b 20%, shall constitute a quorum provided that, for condominiums with 20 or more units, the percentage of unit owners constituting a quorum shall be 20% unless the unit owners holding a majority of the percentage interest in the association provide for a higher percentage, provided that in voting on amendments to the association's bylaws, a unit owner who is in arrears on the unit owner's regular or separate assessments for 60 days or more, shall not be counted for purposes of determining if a quorum is present, but that unit owner retains the right to vote on amendments to the association's bylaws;

(6) that written notice of any membership meeting shall be mailed or delivered giving members no less than 10 and no more than 30 days notice of the time, place and purpose of such meeting except that notice may be sent, to the extent the condominium instruments or rules adopted thereunder expressly so provide, by electronic transmission consented to by the unit owner to whom the notice is given, provided the director and HB2641 Engrossed - 9 - LRB099 07614 HEP 27745 b officer or his agent certifies in writing to the delivery by electronic transmission;

that the proxy must bear the date of execution and, unless the condominium instruments or the written proxy itself provide otherwise, is HB2641 Engrossed - 10 - LRB099 07614 HEP 27745 b invalid after 11 months from the date of its execution;

that every such ballot 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 casting the ballot the HB2641 Engrossed - 11 - LRB099 07614 HEP 27745 b opportunity to cast votes for candidates whose names do not appear on the ballot;

every 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 HB2641 Engrossed - 12 - LRB099 07614 HEP 27745 b acceptable technological means the opportunity to cast votes for candidates whose names do not appear on the ballot;

and further, that a candidate for election to the board of HB2641 Engrossed - 13 - LRB099 07614 HEP 27745 b managers or such candidate's representative shall have the right to be present at the counting of ballots at such election;

and (13) that matters subject to the affirmative vote of not HB2641 Engrossed - 14 - LRB099 07614 HEP 27745 b less than 2/3 of the votes of unit owners at a meeting duly called for that purpose, shall include, but not be limited to:

(g) An association with 30 or more units shall obtain and maintain fidelity insurance covering persons who control or disburse funds of the association for the maximum amount of coverage available to protect funds in the custody or control HB2641 Engrossed - 15 - LRB099 07614 HEP 27745 b of the association plus the association reserve fund.

For the purpose of this subsection a management company HB2641 Engrossed - 16 - LRB099 07614 HEP 27745 b shall be defined as a person, partnership, corporation, or other legal entity entitled to transact business on behalf of others, acting on behalf of or as an agent for a unit owner, unit owners or association of unit owners for the purpose of carrying out the duties, responsibilities, and other obligations necessary for the day to day operation and management of any property subject to this Act.

(i) That upon 10 days notice to the manager or board of managers and payment of a reasonable fee, any unit owner shall HB2641 Engrossed - 17 - LRB099 07614 HEP 27745 b be furnished a statement of his account setting forth the amount of any unpaid assessments or other charges due and owing from such owner.

(ii) With regard to any lease entered into subsequent to the effective date of this amendatory Act of 1989, the unit owner leasing the unit shall deliver a copy of the signed lease to HB2641 Engrossed - 18 - LRB099 07614 HEP 27745 b the board or if the lease is oral, a memorandum of the lease, not later than the date of occupancy or 10 days after the lease is signed, whichever occurs first.

this shall mean that if garage units or storage units, or both, are to be given a vote, HB2641 Engrossed - 19 - LRB099 07614 HEP 27745 b or portion of a vote, that the association must add the total number of votes cast of garage units, storage units, or both, and divide the total by the number of garage units, storage units, or both, and multiply by the aggregate percentage of ownership of garage units and storage units to determine the vote, or portion of a vote, that garage units or storage units, or both, have.