Illinois Legislative Updates

The Illinois Legislative Action Committee has had an exciting and productive 2014. Members of the Committee have dedicated their time and efforts to educate legislators in Springfield on the nuances of the Community Association Management industry. Through the support of many of our elected State Representatives and Senators, the committee was able to assist in the creation, debate, and passage of several bills favorable to our industry. Below is a list of legislative achievements in 2014.

HB 4782 - LEASE OF UNITS AFTER POSSESSION. This bill amends the Illinois Forcible Entry and Detainer Act regarding leasing of units by associations. The bill provides that an association may enter into a lease at any time within 8 months of expiration of the stay on its possession order. The lease entered into may not exceed 13 months. Currently the statute provides that the term of a lease entered into by an association cannot exceed 13 months following the expiration of the stay of the order of possession. This amendment to the Act will aid association in leasing units by affording more time to complete any necessary repairs and locate tenants. This bill signed into law on August 18, 2014 as Public Act No. 98-0996. Effective January 1, 2015.

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HB 4783 - VOIDS CERTAIN DEVELOPER PROVISIONS IN CONDOMINIUM INSTRUMENTS. This bill creates a new Section 18.8 of the Illinois Condominium Property Act. The bill provides that any condition in a condominium instrument which either: (1) requires the prior consent of the unit owners in order for the board to take certain actions, including the institution of any action in court or a demand for a trial by jury; or (2) requires the board to arbitrate or mediate a dispute with a developer, declarant or any person not then a unit owner prior to litigation or a demand for a trial by jury – is void. This bill effectively voids restrictions in governing documents that seek to thwart or place oppressive procedural hurdles upon an association’s pursuit of claims against the developer. On March 20, 2014 passed out of the House Judiciary Committee. This bill signed into law on August 26, 2014 as Public Act No. 98-1068. Effective January 1, 2015.

HB4784 - ELECTRONIC NOTICE. This bill amends Section 18.4 of the Illinois Condominium Property Act. The bill grants a board the power to adopt rules and regulations permitting electronic delivery of notices and other communications, but only upon an individual unit owner’s authorization. Additionally the bill permits each unit owner to designate an electronic address, a U.S. Postal Service address, or both, as his or her contact information to be kept on the list of unit owners. On March 20, 2014 passed out of the House Judiciary Committee. This bill signed into law on July 16, 2014 as Public Act No. 98-0735. Effective January 1, 2015.

HB 5322 - ELECTRONIC VOTING, NOTICE AND USE OF TECHNOLOGY. This bill, introduced by CAI, amends both the Illinois Condominium Property Act and the Common Interest Community Association Act. The bill permits boards to adopt rules and regulations concerning the use of acceptable, verifiable means of technology, including electronic means for unit owner notice, voting, signatures, consents and approvals. The bill establishes that electronic votes are valid and may be used for the purpose of establishing meeting quorums. The bill also provides that a verifiable electronic signature satisfies any requirements for signatures on documents. It acknowledges that if an owner either does not have the capability or desire to conduct business electronically, an association shall make reasonable accommodation, at its expense, for the person to conduct business without the use of electronic or other means. This bill signed into law on August 25, 2014 as Public Act No. 98- 1042. Effective January 1, 2015.

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SB 3014 - AMENDMENTS TO INSURANCE REQUIREMENTS FOR CONDOMINIUMS. This bill amends Section 12 of the Illinois Condominium Property Act regarding insurance requirements. Despite passing out of the Insurance Committee on March 27, 2014 this bill has been re-referred to Assignments. The bill as currently proposed with clarify issues regarding amount of coverage required for replacement costs of the insured property, defense costs obligations of condominium insurance and improvements and betterments coverage. The bill provides greater specificity as to the types of defense coverage required under an association’s directors and officer’s liability policy. Additionally, the bill will remove the right of an association to purchase mandatory owner insurance and charge the cost of such insurance back to the owner. This bill signed into law on July 16, 2014 as Public Act No. 98-0762. Effective June 1, 2015.

SB 3057 - LEASING AND COMMON INTEREST ASSOCIATIONS. This bill amends Section 1-35 of the Common Interest Community Association Act and adds a qualification to which leases must be provided to the association when a unit is not owner occupied. Originally the bill stated that only leases in excess of 30 days must be provided by the owner to the association. This bill was introduced with support of the Illinois Association of Lake Communities. In conjunction with CAI an amendment to the bill has been made which simply provides that “Unless otherwise provided in the community instruments” leases are required to be provided to the association in accordance with Section 1-35, thereby removing the reference to “leases in excess of 30 days.” This bill signed into law on August 1, 2014 as Public Act No. 98- 0842. Effective January 1, 2015.

SB3286 - PROCESS SERVERS IN GATED COMMUNITIES. This bill amends Section 2-203 of the Illinois Code of Civil Procedure regarding service of process on individuals. The bill, as amended, requires employees of “gated residential communities” (including condominiums, cooperatives and private communities) to permit entry to a process server (as defined under the Code) for the purposes of serving process on a defendant or witness who resides or is known to be in the community. This bill signed into law on August 15, 2014 as Public Act No. 98-0966. Effective January 1, 2015.

In addition to the above amendments, perhaps the greatest potential achievement of 2014 is yet to be accomplished. As you are most likely aware, through the efforts of CAI, ILAC, management companies, business partners, and individual homeowners, Governor Quinn issued an Amendatory Veto on SB2664 in August. The amended version of the Act states that following a consent foreclosure, common law strict foreclosure, or the delivery of a deed in lieu of foreclosure, the mortgagee shall have the duty to pay to the association all monies due to satisfy the lien held by the Association, except for 9 months of unpaid regular assessments which may be collected from the purchaser. Next, Senator Hastings, as sponsor of the bill, needs to introduce the amendatory veto changes during the fall veto session. CAI and the ILAC Committee respectfully urge Senator Hastings to approve Governor Quinn’s amendatory veto and to submit the amended language to the legislators for concurrence. Please make sure to stay informed and involved in this matter. It is extremely important that our voices are heard and we make every effort to see that this amendatory veto language is implemented.

As we look forward to the Spring 2015 legislative session, the ILAC Committee will remain dedicated to increasing our influence in Springfield and working every day to ensure that homeowners throughout the State have a group of people willing to fight for legislation that favors Community Associations.

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