SB 154 — CONDO BYLAW-QUORUM-FEE ARREARS

SB0154 EngrossedEnrolled LRB096 03582 AJO 13608 b AN ACT concerning civil law.

SB0154 EngrossedEnrolled - 2 - LRB096 03582 AJO 13608 b (6) that each unit owner shall receive, at least 30 days prior to the adoption thereof by the board of managers, a copy 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 SB0154 EngrossedEnrolled - 3 - LRB096 03582 AJO 13608 b 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;

With respect to multi-year assessments not governed by items (iv) and (v), the entire SB0154 EngrossedEnrolled - 4 - LRB096 03582 AJO 13608 b amount of the multi-year assessment shall be deemed considered and authorized in the first fiscal year in which the assessment is approved;

that the board may prescribe reasonable rules and regulations to govern the right to make such recordings, that notice of such meetings shall be mailed or delivered at least 48 hours prior thereto, unless a written waiver of such notice is signed by the person or persons entitled to such notice pursuant to the declaration, bylaws, other condominium instrument, or provision of law other than this subsection before the meeting is convened, and that copies of notices of meetings SB0154 EngrossedEnrolled - 5 - LRB096 03582 AJO 13608 b of the board of managers shall be posted in entranceways, elevators, or other conspicuous places in the condominium at least 48 hours prior to the meeting of the board of managers except where there is no common entranceway for 7 or more units, the board of managers may designate one or more locations in the proximity of these units where the notices of meetings shall be posted;

(13) the method of filling vacancies on the board which 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 SB0154 EngrossedEnrolled - 6 - LRB096 03582 AJO 13608 b 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;

(17) that the board of managers may disseminate to unit owners biographical and background information about candidates for election to the board if (i) reasonable SB0154 EngrossedEnrolled - 7 - LRB096 03582 AJO 13608 b efforts to identify all candidates are made and all candidates are given an opportunity to include biographical and background information in the information to be disseminated;

(b) (1) What percentage of the unit owners, if other than 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 SB0154 EngrossedEnrolled - 8 - LRB096 03582 AJO 13608 b 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;

SB0154 EngrossedEnrolled - 9 - LRB096 03582 AJO 13608 b (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 other owners of the unit;

(B) that if a rule adopted at least 120 days before a board election or the declaration or bylaws provide for balloting as set forth in this subsection, unit owners may not vote by proxy in board elections, but may vote only (i) by submitting an association-issued ballot in person at the SB0154 EngrossedEnrolled - 10 - LRB096 03582 AJO 13608 b election meeting or (ii) by submitting an association-issued ballot to the association or its designated agent by mail or other means of delivery specified in the declaration, bylaws, or rule;

(C) that if a written petition by unit owners with at least 20% of the votes of the association is delivered to the board within 14 days after the board's approval of a SB0154 EngrossedEnrolled - 11 - LRB096 03582 AJO 13608 b rule adopted pursuant to subparagraph (B) of this paragraph (9), the board shall call a meeting of the unit owners within 30 days after the date of delivery of the petition;

(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 SB0154 EngrossedEnrolled - 12 - LRB096 03582 AJO 13608 b writing any or all of such rights.

SB0154 EngrossedEnrolled - 13 - LRB096 03582 AJO 13608 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 SB0154 EngrossedEnrolled - 14 - LRB096 03582 AJO 13608 b management company.

For purposes of this subsection, the term "fiduciary insurance coverage" shall SB0154 EngrossedEnrolled - 15 - LRB096 03582 AJO 13608 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 SB0154 EngrossedEnrolled - 16 - LRB096 03582 AJO 13608 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 SB0154 EngrossedEnrolled - 17 - LRB096 03582 AJO 13608 b leasing requirements prescribed by this Section or by the declaration, bylaws, and rules and regulations.

The provisions of this Section are applicable to all SB0154 EngrossedEnrolled - 18 - LRB096 03582 AJO 13608 b condominium instruments recorded under this Act.