SB 949 — CONDO/CICAA: BYLAWS-LIENHOLDER

*LRB10006989HEP17042b* SB0949 100THEngrossed GENERALLRB100 ASSEMBLY06989 StateHEP of17042 Illinoisb andAN 2018ACT SB0949concerning Introducedcivil 2/7/2017,law. by Sen.

Michael E.

Hastings SYNOPSIS AS INTRODUCED:

ILCS 160/1-20 ILCS 605/27 from Ch.

30, par.

327 Amends the Common Interest Community Association Act and the Condominium Property Act.

Provides that if the condominium or community instruments require approval of any mortgagee or lienholder of record and the mortgagee or lienholder of record receives a request to approve or consent to the amendment to the condominium or community instruments, the mortgagee or lienholder of record is deemed to have approved or consented to the request unless the mortgagee or lienholder of record delivers a negative response to the requesting party within 35 days after the mailing of the request.

LRB100 06989 HEP 17042 b A BILL FOR SB0949 LRB100 06989 HEP 17042 b AN ACT concerning civil law.

(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 SB0949 Engrossed - 2 - LRB100 06989 HEP 17042 b association or the community instruments.

(e) If the community instruments require approval of any mortgagee or lienholder of record and the mortgagee or lienholder of record receives a request to approve or consent to the amendment to the community instruments, the mortgagee or lienholder of record is deemed to have approved or consented to the request unless the mortgagee or lienholder of record delivers a negative response to the requesting party within 3560 days after the mailing of the request.

A request to approve or consent to an amendment to the community instruments that is required to be sent to a mortgagee or lienholder of record shall be sent by certified mail.

7-14-15.) SB0949 Engrossed - 3 - LRB100 06989 HEP 17042 b Section 10.

SB0949 - 3 - LRB100 06989 HEP 17042 b (765 ILCS 605/27) (from Ch.

If the condominium instruments require approval of any mortgagee or lienholder of record and the mortgagee or lienholder of record receives a request to approve or consent to the amendment to the condominium instruments, the mortgagee or lienholder of record is deemed to have approved or consented to the request unless the mortgagee or lienholder of record delivers a negative response to the requesting party within 3560 days after the mailing of the request.

(b)(1)A Ifrequest thereto isapprove an omission, error, or inconsistencyconsent in a condominium instrument, such that a provision of a condominium instrument does not conform to thisan Actamendment or to another applicable statute, the associationcondominium mayinstruments correctthat theis omission,required error,to orbe inconsistencysent to conforma the condominium SB0949 Engrossed - 4 - LRB100 06989 HEP 17042 b instrumentmortgagee to this Act or tolienholder anotherof applicablerecord statuteshall bybe ansent amendment adopted by votecertified ofmail. two-thirds of the Board of Managers, without a unit owner vote.

(b)(1) If there is an omission, error, or inconsistency in a condominium instrument, such that a provision of a condominium instrument does not conform to this Act or to another applicable statute, the association may correct the omission, error, or inconsistency to conform the condominium instrument to this Act or to another applicable statute by an amendment adopted by vote of two-thirds of the Board of Managers, without a unit owner vote.

(2) If through a scrivener's error, a unit has not been designated as owning an appropriate undivided share of the common elements or does not bear an appropriate share of the common expenses or that all the common expenses or all of the common elements in the condominium have not been distributed in the declaration, so that the sum total of the shares of common elements which have been distributed or the sum total of the shares of the common expenses fail to equal 100%, or if it SB0949 Engrossed - 5 - LRB100 06989 HEP 17042 b appears that more than 100% of the common elements or common expenses have been distributed, the error may be corrected by operation of law by filing an amendment to the declaration approved by vote of two-thirds of the members of the Board of Managers or a majority vote of the unit owners at a meeting called for this purpose which proportionately adjusts all percentage interests so that the total is equal to 100% unless SB0949 - 5 - LRB100 06989 HEP 17042 b the condominium instruments specifically provide for a different procedure or different percentage vote by the owners of the units and the owners of mortgages thereon affected by modification being made in the undivided interest in the common elements, the number of votes in the unit owners association or the liability for common expenses appertaining to the unit.

(4) The procedures for amendments set forth in this SB0949 Engrossed - 6 - LRB100 06989 HEP 17042 b subsection (b) cannot be used if such an amendment would materially or adversely affect property rights of the unit owners unless the affected unit owners consent in writing.

This Section does not restrict the powers of the association to otherwise amend the declaration, bylaws, or other condominium instruments, but authorizes a simple process of amendment requiring a lesser vote for the purpose of correcting defects, SB0949 - 6 - LRB100 06989 HEP 17042 b errors, or omissions when the property rights of the unit owners are not materially or adversely affected.

SB0949 Engrossed - 7 - LRB100 06989 HEP 17042 b (6) Nothing contained in this Section shall be construed to invalidate any provision of a condominium instrument authorizing the developer to amend a condominium instrument prior to the latest date on which the initial membership meeting of the unit owners must be held, whether or not nor it has actually been held, to bring the instrument into compliance with the legal requirements of the Federal National Mortgage SB0949 - 7 - LRB100 06989 HEP 17042 b Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration, the United States Veterans Administration or their respective successors and assigns.