Public Act 97-605-Amendments to the Common Interest Community Association Act and to Section 18.5 of the IL Condominium Property Act.
The Governor has now signed Act 97-605, which became effective August 29, 2011. A copy of the Public Act is attached.
605 mostly makes changes to terminology in the CICAA. But some of the changes are substantive. I discuss the substantive changes, below:
Section 1-5 (Definitions) is changed to clarify that master associations remain governed by Section 18.5 of the Condo Act, and not by the CICAA.
The concepts of Member and Membership are added to distinguish between the rights and duties of unit owners and those persons who attend member meetings and vote at those meetings (often the same people).
In addition, the concept of a “prescribed delivery method” is introduced. A” pdm” can be by mailing, delivery, posting in any association publication, “or any other delivery method that is approved in writing by the unit owner and authorized by the community instruments.” So if the instruments allow for email or other electronic delivery and the owner consents to the use of that type of delivery, email can be used as a pdm.
Section 1-15. New subsection (d): Every common interest community association shall define a member and its relationship to the units or unit owners in its community instruments.”
Frankly I am unsure of what new action this requires. Most declarations or bylaws currently identify the concept of “member” and explain a member’s rights and duties. If your declaration and bylaws are silent on the concept of “member” then some added language will likely be needed.
Section 1-25-Board of Managers etc.
First, understand that if your association is incorporated as a not-for-profit corporation, then you have a Board of Directors. If your association is unincorporated, you have a Board of Managers. See Section 1-5.
Subsection (a) changes the CICAA to require an annual board election. This does not mean that all directors are elected annually (subsection 1-25(d) allows for a term of up to 3 years), but rather that there must be an election of at least one director each year.
In addition, the requirement that all directors be elected “at large” has been eliminated. Some common interest community documents require, for example, that in a multi-bldg development, some directors be elected from each bldg. If directors had to be elected at large, then meeting the per-bldg. rule could be difficult. So the at large requirement is now eliminated.
Subsection (h) clarifies that even if there is more than one unit owner, there is only one vote associated with that unit.
Section 1-35. Unit owner powers. Subsection (d) relating to information needed to be given to buyers at a resale of a unit is amended to require information not only about reserves, but any other fund that is “earmarked” for a specific project. It also eliminates a requirement that the association advise the buyer as to whether improvements or alterations in the unit are in compliance with the declaration.
Section 1-40 Notices. This Section is substantially revised.
- Notices of a membership mtg must now detail the time, place and purpose of the meeting. But any pdm can be used to supply the notice.
- Directors may be elected at the annual meeting, but now any membership meeting can be used to elect directors. Special meetings of either the bd or the membership can now be called by any method allowed in the documents, in addition to those methods stated in the CICAA.
One important things to note: Subsection (b)(4) allows notice of a Bd meeting to be given by an pdm, OR by posting in entrances of the bldg at least 48 hours before the Bd meeting. The Condo Act makes such posting a mandatory additional method of notice of a bd meeting. Condo Act, Section 18(a)(9). But the CICAA does not require posting of each Bd meeting. It may be used at THE method of notice, but it not required as additional notice.
A second important change is that a Bd meeting at which a budget or special assessment is to be considered may now be held on not less than 10 and not more than 60 days’ notice (up from 30 days).
Section 1-45 Finances.
Boards are now required to send each unit owner a copy of the proposed annual budget at least 30 but not more than 60 days before the adoption thereof by the Bd. So Bds now have to act promptly in adopting a final budget.
The Bd has to provide all unit owners with a reasonably detailed summary of receipts and expenses for the prior year, either through an itemized accounting or by providing a “consolidated annual independent audit report of the financial status of all fund accounts within the assn. But it is unclear if the obligation to provide a summary is different from the obligation to provide either an itemized accounts or an audit, or if providing the accounting or audit fulfills the summary requirement. I believe it intends to be read that the accounting or audit satisfies the requirement of a summary, but a court will have to decide that.
Section 1-80. Compliance. This is a new section. It requires that all CICA be in full compliance with the CICAA by 1/1/2012. But it is not clear if this means that all assn. declarations and bylaws have to be amended, or if the assns simply have to comply with the CICAA (regardless of their documents) as of 1/1/2012. I think the latter is intended.
Section 18.5 of the Condo Act. Finally, Section 18.5(j) is deleted. This Subsection tied in with the Forcible Law (735 ILCS 5/9-102). But oddly, Section 9-102 hasn’t been amended, so that Section still us es its own definition of common interest community. Section 9-102 needs to be cleaned up to be made consistent with the CICAA.
View Public Act 097-0605 |
