Legal Updates Affecting Condominiums and Common Interest Community Associations

Posted by KDAODec 12, 20170 Comments

There are a number of updates to laws affecting condominium and other common interest community associations that become effective January 1, 2018.

Here are the highlights:

Amendments to the Illinois Condominium Property Act (ILCPA)

765 ILCS 605/1 et seq.

  • New Section 9(c)(5) of the Condominium Property Act gives the board the discretion, to the extent it is not contrary to the governing documents, to dispose of surplus funds at the end of the association's fiscal year in one of four ways or to address a deficit by incorporating it in the next year's budget. It also includes a provision for owners to object to the board's decision.
  • Amended Section 15(a) of the Condominium Property Act changes how owners who object to the sale of the property as approved by the other owners are compensated from the proceeds of that sale.
  • Several amended sections increase the time owners have to submit a petition objecting to board action:
  • 21 days for an increase in excess of 115% of the prior year's assessments (Section 18(a)(8)(i)).
  • 30 days for a contract with a board member (Section 18(a)(16)).
  • 30 days for the adoption of a rule allowing the use of mail-in ballots or electronic voting in lieu of proxies (Section 18(a)(9)(C)).
  • 21 days for certain capital improvement projects in excess of 5% of the annual budget (Section 18.4(a)).
  • New Section 18.10 of the Condominium Property Act requires that associations with 100 or more unit use generally accepted accounting principles (“GAAP”).
  • There were a number of amendments to Section 19 of the Condominium Property Act:
  • The list of owners that the association is required to keep now includes email addresses and telephone numbers in addition to addresses and weighted vote.
  • It removes the requirement for owners to provide a proper purpose to review records. Owners now have the right to review all records in Section 19 without providing a purpose except for the list of members and the ballots and proxies, which only requires that the owner's purpose relate to the association. The board may require the owner to certify in writing that the list of members and the ballots and proxies will not be used for any commercial purpose or purpose that does not relate to the Association and can fine an owner for a false certification.
  • It reduces the time the board has to respond to the owner's request for records from 30 business days to 10 business days.
  • It removes the requirement that the board charge the owner for retrieving or copying the records; the decision to charge the owner for these costs is now in the board's discretion.
  • Amended Section 27 of the Condominium Property Act provides that if their approval is required by the declaration, mortgagees or lienholders of record are deemed to have approved an amendment of the association's governing documents unless they respond within 60 days.
  • Amended Section 31 of the Condominium Property Act provides that if units are combined, the combined unit can be given exclusive right to use, as a limited common element, any portion of the common elements adjacent to the combined unit that is not necessary or practical for use by the other owners and it is not a diminution of the ownership interests of all other owners requiring the unanimous consent of all owners.

Amendments to Common Interest Community Association Act (CICAA)

765 ILCS 160/1-1 et seq.

  • New Section 1-20(e) of CICAA changes provides that if their approval is required by the declaration, mortgagees or lienholders of record are deemed to have approved an amendment of the association's governing documents unless they respond within 60 days.
  • New Section 1-45(h)(i) of CICAA requires that associations with 100 or more unit use generally accepted accounting principles (“GAAP”).