HB 5509 — COMM ASSN-ASSESSMENTS-JUD SALE

HB5509 EngrossedEnrolled LRB096 18796 AJO 34181 b AN ACT concerning civil law.

HB5509 EngrossedEnrolled - 2 - LRB096 18796 AJO 34181 b (1) The notice of sale shall include at least the following information, but an immaterial error in the information shall not invalidate the legal effect of the notice:

and (H-2) in the case of a unit of a common interest HB5509 EngrossedEnrolled - 3 - LRB096 18796 AJO 34181 b community to which subsection (g-1) of Section 18.5 of the Condominium Property Act applies, the statement required by subdivision (g-1) of Section 18.5 of the Condominium Property Act;

and (ii) such other publications as may be HB5509 EngrossedEnrolled - 4 - LRB096 18796 AJO 34181 b further ordered by the court.

Notwithstanding any language to the contrary, for any adjourned sale that is to be conducted more than 60 days after the date on which it was to first HB5509 EngrossedEnrolled - 5 - LRB096 18796 AJO 34181 b be held, the party giving notice of such sale shall again give notice in accordance with this Section.

Upon payment in full of the amount bid, the person conducting the sale shall issue, in duplicate, HB5509 EngrossedEnrolled - 6 - LRB096 18796 AJO 34181 b and give to the purchaser a Certificate of Sale.

(a) If the declaration, other condominium instrument, or other duly recorded covenants provide that any of the powers of the unit owners associations are to be exercised by or may be delegated to a nonprofit corporation or unincorporated association that exercises those or other powers on behalf of one or more condominiums, or for the benefit of the unit owners of one or more condominiums, such corporation or association HB5509 EngrossedEnrolled - 7 - LRB096 18796 AJO 34181 b shall be a master association.

(3) Each unit owner of a condominium subject to the authority of the board of the master association shall receive written notice mailed or delivered no less than 10 HB5509 EngrossedEnrolled - 8 - LRB096 18796 AJO 34181 b and no more than 30 days prior to any meeting of the board of the master association concerning the adoption of the proposed annual budget or any increase in the budget, or establishment of an assessment.

Notice of meetings shall be mailed or delivered at least 48 HB5509 EngrossedEnrolled - 9 - LRB096 18796 AJO 34181 b hours prior thereto, unless a written waiver of such notice is signed by the persons entitled to notice before the meeting is convened.

In no event may the seller and purchaser both be counted toward a quorum, be permitted to vote for a particular office, or be elected and serve on HB5509 EngrossedEnrolled - 10 - LRB096 18796 AJO 34181 b the board.

(ii) the fees are set HB5509 EngrossedEnrolled - 11 - LRB096 18796 AJO 34181 b forth in a contract between the managing agent and the Association;

(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 HB5509 EngrossedEnrolled - 12 - LRB096 18796 AJO 34181 b and any other expenses incurred, and copies of all contracts, leases, or other agreements entered into by the master association, shall be maintained.

HB5509 EngrossedEnrolled - 13 - LRB096 18796 AJO 34181 b (3) A reasonable fee may be charged by the master association or its board for the cost of copying.

(2) The election of the initial board of directors of a master association whose declaration is recorded on or after August 10, 1990, by the unit owners or the boards of HB5509 EngrossedEnrolled - 14 - LRB096 18796 AJO 34181 b managers of the underlying condominium associations, 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.

(4) Within 60 days following the election of a majority of the board of directors, other than the developer, by unit owners, the developer shall deliver to the board of HB5509 EngrossedEnrolled - 15 - LRB096 18796 AJO 34181 b directors:

HB5509 EngrossedEnrolled - 16 - LRB096 18796 AJO 34181 b (v) 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 unit owners, and originals of all documents relating to everything listed in this subparagraph.

(5) With respect to any master association whose declaration is recorded on or after August 10, 1990, any HB5509 EngrossedEnrolled - 17 - LRB096 18796 AJO 34181 b contract, lease, or other agreement made prior to the election of a majority of the board of directors other than the developer by or on behalf of unit owners or underlying condominium associations, the association or the board of directors, which extends for a period of more than 2 years from the recording of the declaration, shall be subject to cancellation by more than 1/2 of the votes of the unit owners, 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 of managers is elected by the unit owners, otherwise by more than 1/2 of the underlying condominium board of managers.

(6) The statute of limitations for any actions in law HB5509 EngrossedEnrolled - 18 - LRB096 18796 AJO 34181 b or equity which the master association may bring shall not begin to run until the unit owners or underlying condominium board of managers have elected a majority of the members of the board of directors.

(7) A statement setting forth what insurance coverage HB5509 EngrossedEnrolled - 19 - LRB096 18796 AJO 34181 b is provided for all unit owners by the association.

If the outstanding assessments are paid at any time during any action to enforce HB5509 EngrossedEnrolled - 20 - LRB096 18796 AJO 34181 b the collection of assessments, the purchaser shall have no obligation to pay any assessments that accrued before he or she acquired title.

(2) If, through a scrivener's error, a unit has not been designated as owning an appropriate undivided share of the common areas or does not bear an appropriate share of the common expenses, or if all of 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 areas which have been distributed or HB5509 EngrossedEnrolled - 21 - LRB096 18796 AJO 34181 b the sum total of the shares of the common expenses fail to equal 100%, or if it 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 directors or a majority vote of the unit owners at a meeting called for that purpose, which proportionately adjusts all percentage interests so that the total is equal to 100%, unless the declaration specifically provides 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 areas, the number of votes in the unit owners association or the liability for common expenses appertaining to the unit.

(3) If an omission or error or a scrivener's error in the declaration or other instrument is corrected by vote of two-thirds of the members of the board of directors pursuant to the authority established in subdivisions (h)(1) or (h)(2) of this Section, the board, upon written petition by unit owners with 20% of the votes of the association or resolutions adopted by the board of managers or board of directors of the condominium and common interest community associations which select 20% of the members of the board of directors of the master HB5509 EngrossedEnrolled - 22 - LRB096 18796 AJO 34181 b association, whichever is applicable, received within 30 days of the board action, shall call a meeting of the unit owners or the boards of the condominium and common interest community associations which select members of the board of directors of the master association within 30 days of the filing of the petition or receipt of the condominium and common interest community association resolution to consider the board action.

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, errors, or omissions when the property rights of the unit owners are not materially HB5509 EngrossedEnrolled - 23 - LRB096 18796 AJO 34181 b or adversely affected.

(6) Nothing contained in this Section shall be construed to invalidate any provision of a declaration authorizing the developer to amend an instrument prior to the latest date on which the initial membership meeting of the unit owners must be held, whether or not it has actually been held, to bring the instrument into compliance with the legal requirements of the Federal National HB5509 EngrossedEnrolled - 24 - LRB096 18796 AJO 34181 b Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration, the United States Veterans Administration or their respective successors and assigns.

HB5509 EngrossedEnrolled - 25 - LRB096 18796 AJO 34181 b (Source: