HB 5322 — HOMEOWNERS: E-VOTING, E-NOTICE

HB5322 EngrossedEnrolled LRB098 17492 HEP 52599 b AN ACT concerning civil law.

HB5322 EngrossedEnrolled - 2 - LRB098 17492 HEP 52599 b "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.

"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 HB5322 EngrossedEnrolled - 3 - LRB098 17492 HEP 52599 b 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.

"Electronic transmission" means any form of communication, HB5322 EngrossedEnrolled - 4 - LRB098 17492 HEP 52599 b 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.

HB5322 EngrossedEnrolled - 5 - LRB098 17492 HEP 52599 b "Member" means the person or entity designated as an owner and entitled to one vote as defined by the community instruments.

"Property" means all the land, property, and space HB5322 EngrossedEnrolled - 6 - LRB098 17492 HEP 52599 b 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.

Board of managers, board of directors, duties, HB5322 EngrossedEnrolled - 7 - LRB098 17492 HEP 52599 b elections, and voting.

(1) president from among the members of the board, who shall preside over the meetings of the board and of the HB5322 EngrossedEnrolled - 8 - LRB098 17492 HEP 52599 b membership;

HB5322 EngrossedEnrolled - 9 - LRB098 17492 HEP 52599 b (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.

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 HB5322 EngrossedEnrolled - 10 - LRB098 17492 HEP 52599 b to cast votes for candidates whose names do not appear on the ballot.

8-24-12.) HB5322 EngrossedEnrolled - 11 - LRB098 17492 HEP 52599 b (765 ILCS 160/1-85 new) Sec.

HB5322 EngrossedEnrolled - 12 - LRB098 17492 HEP 52599 b (e) Subject to other provisions of law, no action required or permitted by any community instrument or any provision of this Act need be acknowledged before a notary public if the identity and signature of the person can otherwise be authenticated to the satisfaction of the board of directors.

(a) "Declaration" means the instrument by which the property is submitted to the provisions of this Act, as HB5322 EngrossedEnrolled - 13 - LRB098 17492 HEP 52599 b hereinafter provided, and such declaration as from time to time amended.

HB5322 EngrossedEnrolled - 14 - LRB098 17492 HEP 52599 b (h) "Majority" or "majority of the unit owners" means the owners of more than 50% in the aggregate in interest of the undivided ownership of the common elements.

(l) "Condominium Instruments" means all documents and authorized amendments thereto recorded pursuant to the HB5322 EngrossedEnrolled - 15 - LRB098 17492 HEP 52599 b provisions of the Act, including the declaration, bylaws and plat.

HB5322 EngrossedEnrolled - 16 - LRB098 17492 HEP 52599 b (r) "Add-on Condominium" means a property to which additional property may be added in accordance with condominium instruments and this Act.

(x) "Leasehold Condominium" means a property submitted to the provisions of this Act which is subject to a lease, the expiration or termination of which would terminate the condominium and the lessor of which is (i) exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, (ii) a limited liability company whose sole member HB5322 EngrossedEnrolled - 17 - LRB098 17492 HEP 52599 b is exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code of 1986, as amended, or (iii) a Public Housing Authority created pursuant to the Housing Authorities Act that is located in a municipality having a population in excess of 1,000,000 inhabitants.

If there are multiple owners of a single unit, only one of the multiple owners HB5322 EngrossedEnrolled - 18 - LRB098 17492 HEP 52599 b shall be eligible to serve as a member of the board at any one time.

(8) (i) that each unit owner shall receive notice, in the same manner as is provided in this Act for membership HB5322 EngrossedEnrolled - 19 - LRB098 17492 HEP 52599 b 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 or separate assessment;

As used herein, "emergency" means an immediate danger to the structural integrity of the common elements HB5322 EngrossedEnrolled - 20 - LRB098 17492 HEP 52599 b or to the life, health, safety or property of the unit owners, (v) that assessments for additions and alterations to the common elements or to association-owned property not included in the adopted annual budget, shall be separately assessed and are subject to approval of two-thirds of the total votes of all unit owners, (vi) that the board of managers may adopt separate assessments payable over more than one fiscal year.

that any unit owner may record the proceedings at meetings or portions thereof required to be open by this HB5322 EngrossedEnrolled - 21 - LRB098 17492 HEP 52599 b Act by tape, film or other means;

(13) the method of filling vacancies on the board which HB5322 EngrossedEnrolled - 22 - LRB098 17492 HEP 52599 b shall include authority for the remaining members of the board to fill the vacancy by two-thirds vote until the next annual meeting of unit owners or for a period terminating no later than 30 days following the filing of a petition signed by unit owners holding 20% of the votes of the association requesting a meeting of the unit owners to fill the vacancy for the balance of the term, and that a meeting of the unit owners 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 unit owners holding 20% of the votes of the association requesting such a meeting, and the method of filling vacancies among the officers that shall include the authority for the members of the board to fill the vacancy for the unexpired portion of the term;

(16) the board of managers may not enter into a contract with a current board member or with a corporation or 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 HB5322 EngrossedEnrolled - 23 - LRB098 17492 HEP 52599 b owners, for an election to approve or disapprove the contract;

and (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, HB5322 EngrossedEnrolled - 24 - LRB098 17492 HEP 52599 b subject to the requirements of the Tenant Utility Payment Disclosure Act.

(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 HB5322 EngrossedEnrolled - 25 - LRB098 17492 HEP 52599 b 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 officer or his agent certifies in writing to the delivery by electronic transmission;

(8) that, where there is more than one owner of a unit, if only one of the multiple owners is present at a meeting of the association, he is entitled to cast all the votes allocated to that unit, if more than one of the multiple owners are present, the votes allocated to that unit may be cast only in accordance with the agreement of a majority in interest of the multiple owners, unless the declaration expressly provides otherwise, that there is majority agreement if any one of the multiple owners cast the votes allocated to that unit without protest being made promptly to the person presiding over the meeting by any of the HB5322 EngrossedEnrolled - 26 - LRB098 17492 HEP 52599 b other owners of the unit;

that the HB5322 EngrossedEnrolled - 27 - LRB098 17492 HEP 52599 b ballots shall be mailed or otherwise distributed to unit owners not less than 10 and not more than 30 days before the election meeting, and the board shall give unit owners not less than 21 days' prior written notice of the deadline for inclusion of a candidate's name on the ballots;

HB5322 EngrossedEnrolled - 28 - LRB098 17492 HEP 52599 b instructions regarding the use of electronic means for voting shall be distributed to all unit owners not less than 10 and not more than 30 days before the election meeting, and the board shall give unit owners not less than 21 days' prior written notice of the deadline for inclusion of a candidate's name on the ballots;

that unless a majority of the HB5322 EngrossedEnrolled - 29 - LRB098 17492 HEP 52599 b total votes of the unit owners are cast at the meeting to reject the rule, the rule is ratified;

(11) that in the event of a resale of a condominium unit 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 of managers at any meeting of the unit owners called for purposes of electing members of the board, shall have the right to vote for the election of members of the board of managers and to be elected to and serve on the board of managers unless the seller expressly retains in HB5322 EngrossedEnrolled - 30 - LRB098 17492 HEP 52599 b writing any or all of such rights.

HB5322 EngrossedEnrolled - 31 - LRB098 17492 HEP 52599 b (c) Election of a president from among the board of managers, who shall preside over the meetings of the board of managers and of the unit owners.

The association shall bear the cost of the fidelity insurance and fidelity bond, unless otherwise provided by contract between the association and a HB5322 EngrossedEnrolled - 32 - LRB098 17492 HEP 52599 b management company.

For purposes of this subsection, the term "fiduciary insurance coverage" shall HB5322 EngrossedEnrolled - 33 - LRB098 17492 HEP 52599 b be defined as both a fidelity bond and directors and officers liability coverage, the fidelity bond in the full amount of association funds and association reserves that will be in the custody of the association, and the directors and officers liability coverage at a level as shall be determined to be reasonable by the board of managers, if not otherwise established by the declaration or by laws.

(k) Such restrictions on and requirements respecting the use and maintenance of the units and the use of the common elements, not set forth in the declaration, as are designed to HB5322 EngrossedEnrolled - 34 - LRB098 17492 HEP 52599 b prevent unreasonable interference with the use of their respective units and of the common elements by the several unit owners.

In addition to any other remedies, by filing an action jointly against the tenant and the unit owner, an association may seek to enjoin a tenant from occupying a unit or seek to evict a tenant under the provisions of Article IX of the Code of Civil Procedure for failure of the lessor-owner to comply with the HB5322 EngrossedEnrolled - 35 - LRB098 17492 HEP 52599 b leasing requirements prescribed by this Section or by the declaration, bylaws, and rules and regulations.

For purposes of this subsection (p), when making a determination of whether 30% or fewer of the units, by HB5322 EngrossedEnrolled - 36 - LRB098 17492 HEP 52599 b number, possess over 50% in the aggregate of the votes in the association, a unit shall not include a garage unit or a storage unit.

This Section shall govern the use of technology in HB5322 EngrossedEnrolled - 37 - LRB098 17492 HEP 52599 b implementing the provisions of any condominium instrument or any provision of this Act concerning notices, signatures, votes, consents, or approvals.

(f) If any person does not provide written authorization to conduct business using electronic transmission or other HB5322 EngrossedEnrolled - 38 - LRB098 17492 HEP 52599 b equivalent technological means, the association shall, at its expense, conduct business with the person without the use of electronic transmission or other equivalent technological means.