rights-and-responsibilities-of-association-board-members.pdf

https://idfpr.illinois.gov/CCICO/

August 2022

Rights and

Responsibilities

Association Board

Members

Members of association boards must be

well-prepared and well-informed to

“govern” their respective communities. We

hope that this publication will help prepare

and inform board members to effectively

carry out their duties and promote civility

and cooperation between association

boards and association members.

Condominium and common interest

community associations (which will be

collectively referred to in this publication as

“associations,” unless the context dictates

otherwise) are governed by a board of

managers (more commonly referred to as

“directors”) elected by the unit owners to

represent them in governing and managing

the association. The Board is responsible

for the overall management, oversight and

control of the association. Boards have

statutory rights and duties, largely derived

from the Condominium Property Act (765

ILCS 605/1, et. seq. (“CPA”)), the Common

Interest Community Association Act (765

ILCS 160/1, et. seq. (“CICAA”)) and the

Illinois General Not for Profit Corporation

Act (805 ILCS 105/1 et. seq.), as well as

common law duties governing their fiduciary

relationship with the association and its

members.

It’s incumbent on directors to run their

association like a business, with high

standards of trust and responsibility. Board

members must respond timely and

thoughtfully to changes in the economic

environment, the unit owner population and

the physical and financial status of the

property. Specifically, Section 18.4 of the

Illinois Condominium Property Act states

that a condominium board must "exercise

the care required of a fiduciary of the unit

owners." This duty is also set out in the

Illinois General Not for Profit Corporation

Act. In general, those fiduciary duties

require undivided loyalty and the exercise of

reasonable business judgment in

conducting the business affairs of the

association.

https://idfpr.illinois.gov/CCICO/

Condominium and common interest

community properties are sometimes

likened to small, self-contained towns. Or,

in some cases, not so small. In March,

2018, fifteen percent of Illinois’ 1400 local

governments had a population of 250 or

less and one-third of the State’s local

governments had a population of 600 or

less. Many associations have similar and

even much larger numbers of members. In

Chicago alone, there are numerous

condominium properties with upwards of

800 units. Based on Illinois’ average

household occupancy of 2.63 persons,

those condominium properties would have

populations that exceed those in almost

sixty percent of Illinois’ local governments.

Associations are like

"mini-governments"

which provide

quasi-public services

Associations, which are first and foremost

corporations, can also be big businesses,

with budgets in some large residential

associations exceeding $5 million. They

make substantial purchases of goods and

services, must prudently invest what often

amounts to tens of thousands of dollars in

their reserve funds, and direct the

management and maintenance of

properties with intricate mechanical and

other operating systems. In addition,

associations are like “mini-governments”

which provide quasi-public services (e.g.

trash removal, maintenance, snow

removal), levy mandatory fees (e.g.

assessments), and regulate resident

behavior. Little wonder, then, that

managing the affairs of an association is

such a complex and important undertaking.

Board members must put the interests of the

association before their own personal

interests and preferences, must studiously

avoid conflicts of interest, and must

demonstrate undivided loyalty to the

association. Even if a unit owner doesn’t

believe that the board has made the “right”

decision, if the board and its members follow

the law and the correct procedures and act in

the interest of the association, they generally

will not be personally liable for their actions

on behalf of the association. If, on the other

hand, board members ignore or knowingly

fail to follow the law and/or the association’s

governance documents, or act in their own

self-interest, they may be personally liable for

the consequences of their action(s).

The information contained in this publication

is a brief overview of the responsibilities and

rights of association board members. The

information is intended to provide general

information and is not a substitute for

obtaining legal advice to address specific

situations. Since this publication may not

contain subsequent changes in the law, it

should only be used as a general source of

information The complete text of the Illinois

Condominium Property Act (“Act”) (765 ILCS

605/1, et. seq.), the Common Interest

Community Association Act (765 ILCS

160/1, et. seq.) as well as the General Not

for Profit Corporation Act (805 ILCS 105/1,

et. seq.) can be obtained on the website of

the Illinois Condominium and Common

Interest Community Ombudsperson at:

Governance Documents

Just as the elected leaders of a small town must

be knowledgeable about the laws defining their

authority and governing their actions, so must

board members become familiar with the

documents that control the operation and

administration of the association (also called

"community instruments" in CICAA). These are:

Declaration: The declaration is the document

which creates and defines the association. It

essentially contains the “ground rules” for the

association. It is recorded against the entire

property so that all owners who buy property in

the association after the date on which the

declaration is recorded will be bound by its

provisions. Thus, the declaration “runs with the

land,” i.e., is found in the chain of title to the

property, and affects all subsequent owners of

the property. The declaration will also

commonly contain various restrictions against

owners using the property or the units in a

certain way. The declaration may be

considered the “constitution” for the operation

and administration of the condominium

association. As a general rule, if there is a

conflict between the provisions of the

declaration and the bylaws or other

condominium instruments, the declaration

prevails except to the extent it is inconsistent

with the CPA or CICAA.

Bylaws: The bylaws, often an exhibit to the

declaration or incorporated within the body of

the declaration, contain the procedural

framework under which the association/

corporation will run. The bylaws tell the board of

directors how to run the corporation, i.e. how

many people should sit on the board, how often

to meet, notice requirements, the power of the

board, the manner in which board members

may participate in a board meeting and the

method of filling vacancies on the board, for

example. An association’s bylaws must set forth

the method by which the association adopts

and amends rules and regulations governing

the use and operation of the common elements.

http://www.idfpr.com/CCICO

The General Not for Profit Corporation Act is

relevant to those associations that have

elected to become not-for-profit corporations

and have registered with the Illinois

Secretary of State; associations, whether or

not incorporated, have those powers and

responsibilities specified in the General Not

For Profit Corporation Act that are not

inconsistent with the CPA or the

condominium instruments.

https://idfpr.illinois.gov/CCICO/

Rules and Regulations: Rules (or “rules

and regulations”) are sometimes referred to

as the “dos and don’ts” of a community

association. The rules expand the terms or

restrictions within an association’s

declaration. Rules are the tool of an

association which allow a board to enforce the

restrictions within the declaration and bylaws.

Without rules, a board is often left asking itself

what it can do about an owner who is violating

the declaration. It is a board function to adopt

or amend rules.

Board Structure

The CPA requires that an association’s bylaws

provide for at least the following: (1) the

election from among the unit owners of a

board of managers; (2) the number of persons

constituting such board; (3) that the terms of at

least one-third of the members of the board

shall expire annually and that all members of

the board shall be elected at large; (4) that if

there are multiple owners of a single unit, only

one of the multiple owners shall be eligible to

serve as a member of the board at any one

time and (5) that no member of the board or

officer may be elected for a term of more than

2 years, but that officers and board members

may succeed themselves. The bylaws must

also specify the powers and duties of the

board and the compensation, if any, of the

board members.

The CICAA provides that elections must be

held in accordance with the community

instruments, provided that an election for the

board of managers or board of directors must

be held no less frequently than once every 24

months from among the membership of a

common interest community association.

Furthermore, the members of the board serve

without compensation unless the community

instruments indicate otherwise. No member of

the board or officer may be elected for a term

of more than 4 years, but officers and board

members may succeed themselves.

The Illinois General Not for Profit Corporation

Act, which governs the vast majority of

associations, requires that the board of

directors of a corporation consist of three or

more directors with the number of directors

established in the bylaws. In practice, the

number of directors will vary depending on the

preference of the original developer and the

size of the association, with boards typically

ranging in composition from three to nine

members. One Illinois association in a property

of 700+ units, however, has a Board comprised

of 44 members!

There is a hierarchy of authority between the

association's governing documents and the

CPA and CICAA. In any situation where the

governing documents and those statutes

conflict (for instance, where the governing

documents limit the Board's ability to pass

special assessments or make certain

expenditures), the CPA or CICAA will control

and trump any inconsistent provision within

the governing documents.

There is a hierarchy

of authority between

the association's

governing documents

and the CPA and

CICAA.

All persons who use or occupy a unit in a

condominium or common interest community

are subject to the CPA or CICAA, as

applicable, as well as the declaration, bylaws

and rules and regulations. (CPA, Section

18(n); CICAA, Sec. 1-35)).

https://idfpr.illinois.gov/CCICO/

Both the CPA and CICAA require that the

board elect, from among its members, a (1)

president, who presides over the meetings of

the board and of the membership; (2)

secretary, who keeps the minutes of all

meetings of the board and of the

membership; and (3) treasurer, who is

responsible for keeping the association’s

financial records and books of account.

Both the CPA and CICAA authorize the

remaining members of the board to fill a

vacancy on the board by a two-thirds vote of

the remaining board members until the next

annual meeting of the membership or until

members holding 20% of the votes of the

association request a meeting of the

members to fill the vacancy for the balance of

the term. A meeting of the members shall be

called for purposes of filling a vacancy on the

board no later than 30 days following the

filing of a petition signed by membership

holding 20% of the votes of the association

requesting such a meeting of the unit owners

to fill the vacancy for the balance of the term.

The CICAA provides that two-thirds of the

membership (unit owners) may remove a

board member as a director at a duly called

special meeting; the CPA requires that an

association’s bylaws provide for

the method of removal from office of

members of the board.

Under both the CPA and CICAA, an

association’s board must meet at least 4

times annually. Notice of every board of

managers meeting must be placed in

entranceways, elevators, or other

conspicuous places in the condominium or

common interest community at least 48

hours prior to the meeting. The CPA further

requires that notice of every meeting of the

board of managers be given at least 48 hours

prior to the meeting to: (i) each unit owner

who has provided the association with written

authorization to conduct business by

acceptable technological means, and, (ii) to

the extent that the condominium instruments

of an association require, to each other unit

owner by mail or delivery.

https://idfpr.illinois.gov/CCICO/

In addition to meetings of the board of

managers, associations are required to hold

membership meetings. Most often, these are

“annual meetings” called for, among other

things, the election of directors. The CPA

provides that written notice of any membership

meeting must be mailed or delivered to

members no less than 10 and no more than 30

days’ prior to the meeting and that the notice

specify the time, place and purpose of such

meeting. If a condominium association has

adopted rules providing for electronic

communication, then notice of a membership

meeting may be given to a unit owner who has

consented to the receipt of such notice by

electronic transmission. Notice of any

membership meeting of a common interest

community must also be given through a

prescribed delivery method no less than 10 and

no more than 30 days prior to the meeting and

detail the time, place and purpose of the

meeting.

Elections

Conducting well-run elections with scrupulous

integrity and honesty is an essential function of

every association. It’s of utmost importance that

every association “follow the rules” for

conducting an election that complies with

Illinois law. If owners are going to trust the

members of the boards that govern the affairs

of their association, they first must have

confidence that their election was fair and

lawful.

Condominium Associations

The bylaws of every condominium association

must provide for the election from among the

unit owners of a board of managers.

Once elected, board members have broad

authority to act on behalf of the association and

its members subject to the Act, the declaration

and bylaws including filling vacancies on the

board until the next annual meeting of unit

owners and electing the association’s officers.

If the court finds that an election was not held

to elect members of the board within the

required period due to the bad faith acts or

omissions of the board of managers or the

board of directors, the members are entitled

to recover their reasonable attorney's fees

and costs from the association. However, this

remedy does not apply if the relevant notice

requirements were met and an election was

not held solely due to a lack of a quorum.

A member may vote:

(1) by proxy executed

in writing by the

member or by his or

her duly authorized

attorney in fact,

provided that the proxy

bears the date of execution.

Unless the community instruments or the

written proxy itself provide otherwise, proxies

are not valid for more than 11 months after the

date of execution; or (2) by submitting an

association-issued ballot in person at the

election meeting; or (3) by submitting an

association-issued ballot to the association or

its designated agent by mail or other means of

delivery specified in the declaration or bylaws;

or (4) by any electronic or acceptable

technological means.

The association may, if its rules permit,

conduct elections by electronic or acceptable

technological means. Instructions regarding

the use of electronic means or acceptable

technological means for voting must be

distributed to all members not less than 10 and

not more than 30 days before the election

meeting. The instruction notice must include

the names of all candidates who have given

the board or its authorized agent timely written

notice of their candidacy and must give the

person voting through electronic or acceptable

technological means the opportunity to cast

votes for candidates whose names do not

appear on the ballot.

https://idfpr.illinois.gov/CCICO/

The CPA requires that the members hold an

annual meeting, one of the purposes of

which is the election of board members from

among the unit owners. The CPA generally

provides unit owners the right to vote in

person or by a proxy executed in writing by

the unit owner or his duly authorized

attorney. However, it is important for unit

owners to be familiar with the declaration,

bylaws and rules of their association, which

may prohibit the use of proxies.

The board may distribute to unit owners

biographical and background information

about candidates for election to the board if

reasonable efforts are made to identify all

candidates, all candidates are given an

opportunity to include this information in the

materials to be distributed to unit owners,

and the board does not express a preference

in favor of any candidate.

Written notice of the meeting at which the

election will be conducted must be mailed or

delivered to all unit owners, giving no less

than 10 days and no more than 30 days’

notice of the time, place and purpose of the

meeting. If the unit owner has provided

written authorization to receive delivery by

acceptable technological means (most often,

email), such form of delivery may be used by

an Association.

Common Interest Community

Associations

The CICAA requires that

elections for the board

from among the

membership be held in accordance with the

community instruments. An election must be

held at least once every 24 months. If no

election is held to elect board members

within the time period specified in the

bylaws, or within 90 days thereafter, then

20% of the members may bring a civil action

to compel compliance with the election

requirements specified in the bylaws or

operating agreement.

https://idfpr.illinois.gov/CCICO/

• To provide for the operation, care,

upkeep, maintenance, replacement and

improvement of the common elements.

• To prepare, adopt and distribute the

annual budget for the property.

• To prepare, adopt and distribute the

annual budget.

• To levy and expend assessments.

• To collect assessments from unit owners.

• To provide for the employment and dismissal

of the personnel necessary or advisable for

the maintenance and operation of the

common elements.

• To obtain adequate and appropriate kinds of

insurance (an association with

30 or more

units is required to obtain and maintain fidelity

insurance covering persons who control or

disburse funds of the association for the

maximum amount of coverage available to

protect funds in the custody or control of the

association plus the association reserve

fund).

• To own, convey, encumber, lease, and

otherwise deal with units conveyed to or

purchased by it.

• To adopt and amend rules and regulations

covering the details of the operation and use

of the property, after a meeting of the unit

owners called for the specific purpose of

discussing the proposed rules and

regulations.

• To keep detailed, accurate records of the

receipts and expenditures affecting the use

and operation of the property.

• To have access to each unit for the

maintenance, repair or replacement of any

common elements or for making emergency

repairs necessary to prevent damage to the

common elements or to other units.

• To pay real property taxes, special

assessments, and any other special taxes or

charges of the State of Illinois or of any

political subdivision thereof.

• To impose charges for late payment of a unit

owner's proportionate share of the common

expenses, or any other expenses lawfully

agreed upon, and after notice and an

opportunity to be heard, to levy reasonable

fines for violation of the declaration, by-laws,

and rules and regulations of the association.

The board rules shall provide, and the

instructions provided to the member shall

state, that a member who submits a vote

using electronic or acceptable technological

means may request and cast a ballot in

person at the election meeting, and thereby

void any vote he or she previously submitted.

General Powers

Illinois law invests association boards with

broad obligations and authority. Boards, for

instance, have the power to sue and be sued;

to purchase, lease and own real or personal

property; to sell, mortgage and lease all or part

of the association’s property or assets; to

borrow money for their corporate purposes; to

invest the association’s funds; and, in general

“to have and exercise“ all powers necessary or

convenient to effect any or all of the purposes

for which the corporation is formed.” (805 ILCS

105/103.10).

Association law makes clear the board is

responsible for the operation and

administration of the association. Board

members make the final decisions, although

they can and often do hire expert help such as

managers, attorneys, accountants and

engineers. The CPA conveys a broad grant of

authority to the board of managers: “[t]he

board of managers shall exercise for the

association all powers, duties and authority

vested in the association by law or the

condominium instruments except for such

powers, duties and authority reserved by law

to the members of the association.” Among

the duties of the board of managers

enumerated in the Section 18.4 of the CPA

are:

The CICAA does not enumerate the duties

of boards and their members as extensively

or specifically as does the CPA. The CICAA

does provide, among other things, that:

• The board shall meet at least four times

annually.

• The association may engage the services

of a manager or management company.

• The board shall have the power, after

notice and an opportunity to be heard, to

levy and collect reasonable fines from

members or unit owners for violations of

the declaration, bylaws, operating

agreement, and rules and regulations of

the association.

• The board shall maintain certain specified

records and make them available, subject

to statutory requirements, for examination

and copying.

• The bylaws or operating agreement shall

provide for the maintenance, repair, and

replacement of the common areas and

payments therefor, including the method

of approving payment vouchers.

Board meetings also provide an excellent

opportunity to communicate the current status

of projects, provide budget and financial

summaries, report on items addressed and

resolved since the last meeting, report on open

action items that need discussion and

approvals, and address long-term planning,

including the status of any reserve or other

studies. Although a board need not provide an

encyclopedic or exhaustive report on the

business of the association at every meeting,

openness and transparency can go a long way

in assuring members that the affairs of the

association are everyone’s business and are

being conducted capably and responsibly—that

fiduciary obligations are being satisfied and

their monies are being prudently spent.

Board meetings are open to all unit owners,

who must have received appropriate prior

notice of the meeting as set forth earlier in this

publication. Condominium unit owners do not

have the right to comment at board meetings.

However, many condominium association

boards permit a unit owner comment period,

subject to the board’s discretion. Members in

common interest communities do have the right

to comment at board meetings; the duration

and meeting order for member comments is

within the discretion of the board. Any unit

owner in a condominium association may

record a board meeting by tape, film or other

means, and the board may adopt reasonable

rules to govern the making of such recordings.

Recording is neither expressly allowed nor

expressly prohibited by the CICAA. However,

under the Illinois General Not For Profit

Corporation Act of 1986, members have a right

to record board meetings, which would apply to

any common interest community association

incorporated as a not-nor-profit corporation.

Meetings Regarding Budgets and

Assessments

Condominium associations must provide a

copy of the proposed annual budget to all unit

owners at least 25 days prior to the board

meeting at which the budget will be adopted.

Meetings

Board Meetings

As mentioned above, boards of managers in

both common interest and condominium

communities must meet at least four times

each year. Board meetings are held to

enable board members to transact the

association’s business.

https://idfpr.illinois.gov/CCICO/

https://idfpr.illinois.gov/CCICO/ 9

Meetings Regarding Rules

In a condominium association, any proposed rule

must be discussed at a membership meeting

called for that specific purpose. The CPA

provides that the board of directors has the sole

authority to adopt or amend rules and regulations

covering the operation and use of the property,

after a meeting of the unit owners called for the

specific purpose of discussing the proposed

rules. Notice of the meeting must be sent to all

owners not less than 10 and not more than 30

days' of the date of the meeting; a copy of the

proposed rules or amendments thereto must be

attached to the notice to all owners. No rule may

prohibit any reasonable accommodation for

religious practices, including the attachment of

religiously mandated objects to the front-door

area of a condominium unit.

There is no parallel requirement for common

interest community associations, as

the CICAA

does not provide for general rule making

authority. The association’s declaration may

provide guidance with respect to rule making.

The CPA expressly provides that no rule adopted

by the board may impair any right guaranteed by

the First Amendment of the United States

Constitution or Section 4 of the Illinois

Constitution including, but not limited to, the free

exercise of religion. There is no parallel provision

in the CICAA. Under both the CPA and CICCA, a

board may not prohibit the display of the

American flag or a military flag, or both, on or

within the limited common areas and facilities of a

unit owner or on the immediacy adjacent exterior

of the building in which the unit of a unit owner is

located. Proposed rules may not conflict with the

provision of the CPA or the condominium

instruments.

Special Meetings

In condominium associations, special meetings of

the board of managers can be called by the

president or 25% of the members of the board.

Special meetings of the members can be called

by the president, board of managers, or by 20%

of unit owners.

Common interest community associations

must provide a copy of the annual budget to

all unit owners at least 30 days but not more

than 60 days prior to the board meeting at

which the budget will be adopted. In common

interest communities, assessments for

additions and alterations to the common

areas or to association-owned property not

included in the annual budget must be

assessed separately and are subject to

approval of a simple majority of the total

members at a meeting called for that

purpose.

Minutes of all meetings of

association boards must

be kept and maintained

for seven (7) years

Minutes of all meetings (open and closed) of

both condominium and common interest

community association boards must be kept

by the secretary of the board and maintained

for seven (7) years.

Membership Meetings

Condominium and common interest

community associations must hold a meeting

of the unit owners (membership meeting) at

least one time per year for the purpose of

electing the members of the board. A

quorum of unit owners (generally, 20%) is

required for that purpose. Recording of

membership meetings is neither allowed nor

prohibited by the CPA or CICAA. Written

notice of the membership meeting must be

mailed or delivered to all unit owners, giving

no less than 10 days' and no more than 30

days’ notice of the time, place and purpose

of the meeting. If a unit owner has provided

written authorization, then such delivery may

be made by acceptable technological means

including email.

Minutes of all

meetings of

association boards

must be kept and

maintained for seven

(7) years.

The board of a condominium or common

interest community association board may also

meet privately (that is, separately from a

noticed meeting) for the same

six purposes listed above.

Budgets

One of the most important responsibilities of an

association board is to develop and enact a

budget for the association. To this end, board

members must thoughtfully consider their

fiduciary duties—their responsibility to consider

budget matters in a businesslike manner and

perform due diligence to make good decisions

on behalf of the community as a whole. The

annual budget calculates the total amount of

assessment payments required to support the

association’s expenses and savings. Since

adopting a new budget typically results in an

increase to the monthly assessment

requirements of the association’s members,

the budget proposing increased assessments

can often be met with resistance. It is therefore

important to make sure that boards follow all of

the requirements of the CPA or CICAA and

their governance documents.

Condominium Associations

Each year, the board must prepare and

distribute a proposed annual budget indicating

with particularity: all anticipated common

expenses by category (line item); capital

expenditures or repairs; payment of real estate

taxes, if any; the amount designated for

reserves; each unit owner’s anticipated

assessments; and other anticipated income.

Unit owners are to receive a copy of the

proposed annual budget at least 25 days

before the date of the board meeting at which

the board will adopt the proposed annual

budget. Notice of the board meeting at which

the board will adopt the proposed annual

budget must be mailed or delivered to all unit

owners not less than 10 and not more than 30

days before the date of that board meeting.

In common interest community associations,

special meetings of the board may be called

by the president, by 25% of the members of

the board, or by any other method that is

prescribed in the community instruments.

Special meetings of the membership may be

called by the president, the board, 20% of the

membership, or any other method that is

prescribed in the community instruments.

Closed Sessions

Generally, a “closed session” is a portion of

an open board meeting during which the

board discusses – but does not vote on –

certain sensitive matters specified by Illinois

law, without any owners present. A closed

session generally occurs when the board

votes to go into closed session at any time

during a board meeting.

There are only six

matters that may lawfully

be addressed in closed

There are only six

matters that may

lawfully be addressed

in closed session.

There are only six matters that may lawfully

be addressed in closed session: (1) pending

or likely litigation by or against the

association; (2) the appointment,

employment, engagement or dismissal of any

employee, independent contractor, agent or

other provider of goods and services; (3)

interviewing a potential employee,

independent contractor, agent or other

provider of goods and services; (4) violations

of the association’s rules and regulations; (5)

an owner’s unpaid assessments; and (6)

consultation with the association’s legal

counsel. Minutes of the open board meeting

should not reflect the matters discussed in

closed session (although the board must keep

and maintain minutes of the closed meeting);

however, any vote on matters discussed in

the closed session must take place in an open

portion of a board meeting.

https://idfpr.illinois.gov/CCICO/

• The repair and replacement cost, and

the estimated useful life, of the property

the association is obligated to maintain,

including but not limited to: structural

and mechanical components, surfaces

of the buildings and common elements,

and energy systems and equipment.

• The current and anticipated return on

investment of association funds.

• Any independent professional reserve

study that the association has obtained.

• The financial impact on unit owners,

and the market value of the

condominium units, of any assessment

increase needed to fund reserves.

• The ability of the association to obtain

financing or refinancing.

The reserve study is thus an important tool for

determining the amount of reserves. While the

reserve study is not the only component to

consider in establishing the amount of

reserves, if a board is going to deviate from

the recommendations set forth in the reserve

study, it should consider having a discussion

at the budget adoption meeting as to the

criteria set forth in the CPA, and to reflect in

the minutes that the board considered the

criteria in determining the amount of reserves.

The CPA provides that 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 from

the preceding fiscal year, unit owners with

20% of the votes of the association may

deliver a written petition to the board of

managers within 14 days of the board action.

The board must then 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. Unless a majority of the

total votes of the unit owners are cast at the

meeting to reject the budget or separate

assessment, it is ratified.

A condominium association has no authority

to forbear the payment of assessments by any

unit owner. In other words, condominium

associations are required by law to collect all

assessments from all unit owners in the same

manner and without prejudice or consideration

of “special circumstances” and without

affording preferential treatment to any unit

owner.

Budget Surplus or Deficit

Effective January 1, 2018, the CPA was

amended with the effect of adding a new layer

of complexity to the treatment of any year-end

budget surplus or deficit.

https://idfpr.illinois.gov/CCICO/

Notice of the board meeting must also be

posted at least 48 hours before the date of

that board meeting. The budget must be

approved by at least a majority of the board

members present at a properly noticed open

board meeting, at which a quorum of the

board is present during the entire meeting.

Section 9(c)(2) of the CPA requires that all

budgets provide for reasonable reserves to

pay for capital expenditures, deferred

maintenance and repair or replacement of

the common elements. The CPA sets forth

the various items the board must take into

consideration to determine the amount of

reserves appropriate for the association.

These are:

Notice of the board

meeting must also be

posted at least 48

hours before the date

of the board meeting.

Master Associations

Each year the board must prepare and

distribute a proposed annual budget. Unit

owners are to receive a copy of the proposed

annual budget at least 30 days before the

date of the board meeting at which the board

will adopt the proposed annual budget.

Notice of the board meeting at which the

board will adopt the proposed annual budget

must be mailed or delivered to all unit owners

not less than 10 and not more than 30 days

before the date of that board meeting. Notice

of the board meeting must also be posted at

least 48 hours before the date of that board

meeting. The budget must be approved by at

least a majority of the board members

present at a properly noticed open board

meeting, at which a quorum of the board is

present during the entire meeting.

Common Interest Community

Associations

If a common interest community association

is not exempt from the CICAA, then each

year the board must prepare and distribute a

proposed annual budget indicating the

portions intended for reserves, capital

expenditures or repairs or payment of real

estate taxes. Members are to receive a copy

of the proposed annual budget at least 30

days, but not more than 60 days, before the

date of the meeting at which the board will

adopt the proposed annual budget. Notice of

the board meeting at which the board will

adopt the proposed annual budget must be

given to all members not less than 10 and not

more than 60 days before the date of that

board meeting. The budget must be

approved by at least a majority of the board

members present at a properly noticed open

board meeting, at which a quorum of the

board is present during the entire meeting.

If total common expenses exceed the total

amount of the approved and adopted budget,

the common interest community association

must disclose this variance to all its members

and specifically identify the subsequent

assessments needed to offset this variance in

future budgets.

Unless the association’s declaration or

bylaws provide otherwise, then the board

may, at its discretion, dispose of the surplus

in one or more of the following ways: (i)

contribute the surplus to the association’s

reserve fund; (ii) return the surplus to the

unit owners as a credit against the

remaining monthly assessments for the

current fiscal year; (iii) return the surplus to

the unit owners in the form of a direct

payment to the unit owners; or (iv) maintain

the funds in the operating account, applying

the funds as a credit when calculating the

following year’s annual budget

Unless the association's

declaration or bylaws

provide otherwise, then

the board may, at its

discretion, dispose of

the surplus in one or

more of four ways.

If the fiscal year ends in a deficit, then,

unless the declaration or bylaws provide

otherwise, the board may, at its discretion,

address the deficit by incorporating it into

the following year's annual budget.

If 20% of the unit owners of the association

deliver a petition objecting to the board’s

action in regard to either a surplus or a

deficit within 30 days after being notified of

the board's action, the board of managers

must call a meeting of the unit owners

within 30 days of the date of delivery of the

petition. At the meeting, the unit owners

may vote to select a different option than

the option selected by the board of

managers. Unless a majority of the total

votes of the unit owners are cast at the

meeting to reject the board's selection and

select a different option, the board's

decision is ratified.

https://idfpr.illinois.gov/CCICO/

If a common interest community

association is exempt from the CICAA,

then the procedure for adopting a budget

will be set forth in its declaration and

bylaws.

Special Assessments

Condominium Associations

The CPA provides, at Section 18(a)(8),

that unless a special assessment is for an

addition or alteration to the common

elements or to association-owned property

not included in the adopted annual budget,

which requires 2/3 unit owner approval, a

condominium board of directors – without

unit owner approval – may adopt a special

assessment. However, in the event the

special assessment adopted by the board

without unit owner approval exceeds 115%

of the sum of all regular or special

assessments from the preceding year, the

unit owners may commence the series of

actions set forth below to reject a special

assessment.

Generally, the board votes during open

session of a properly called board meeting

to adopt a special assessment, after which

point the unit owners have the option of

initiating time-sensitive procedures to

attempt to reject the special assessment

via following steps:

1. Twenty percent (20%) of the unit

owners (by unit percentage as stated

in the a

ssociation's governing

documents) must sign a petition that

is submitted to the board to

reject the

special assessment within 14 days

the date the board adopts the special

assessment;

2. Provided the requisite 20% of unit

owners have properly petitioned the

board, the board must call a meeting

of the unit owners within 30 days of

the date of delivery of the petition;

and

https://idfpr.illinois.gov/CCICO/

Separate assessments

for expenditures relating

to emergencies or mandated

by law may be adopted by

the board of managers

without being subject to unit owner approval

or the procedures for rejecting a special

assessment. The CPA defines “emergency”

to mean "an immediate danger to the

structural integrity of the common elements or

to the life, health, safety or property of the unit

owners.”

Assessments for additions and alterations to

the common elements or to association-

owned property not included in the adopted

annual budget must be separately assessed

and are subject to approval of two-thirds of

the total votes of all unit owners.

Common Interest Community

Associations

A common interest community association

board must give members notice of any board

meeting concerning the adoption of a special

assessment, through a prescribed delivery

method, within 10 to 60 days prior to the

meeting.

Unless a majority of the total votes of

the unit

owners are cast at the meeting

to reject the special assessments, the

special assessment is ratified.

Common Interest Community

Associations

Common interest community associations must

provide all members with a reasonably detailed

summary of the receipts, common expenses,

and reserves for the preceding budget year.

The board is required to (i) make available for

review to all members an itemized accounting

of the common expenses for the preceding year

actually incurred or paid, together with an

indication of which portions were for reserves,

capital expenditures or repairs or payment of

real estate taxes and with a tabulation of the

amounts collected pursuant to the budget or

assessment, and showing the net excess or

deficit of income over expenditures plus

reserves or (ii) provide a consolidated annual

independent audit report of the financial status

of all fund accounts within the association.

Insurance

Association boards must be vigilant in

protecting the association’s real and personal

property and other assets. This is a

fundamental obligation to owners and an

essential part of fulfilling the board members’

fiduciary duties.

Condominium Associations

A condominium association is required by

Section 12 of the CPA to have the following

insurance:

(1) Property Insurance: The association must

maintain property insurance (i

) on the common

elements and the units, including the limited

common elements and except as otherwise

determined by the board of managers, the bare

walls, floors, and ceilings of the unit, (ii)

providing coverage for special form causes of

loss, and (iii) providing coverage, at the time

the insurance is purchased and at each

renewal date,

https://idfpr.illinois.gov/CCICO/

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 year, the common interest

community association, upon written

petition by members with 20% of the votes

of the association delivered to the board

within 14 days of the board action, must

call a meeting of the members within 30

days of the date of delivery of the petition

to consider the budget or separate

assessment; unless a majority of the total

votes of the members are cast at the

meeting to reject the budget or separate

assessment, it shall be deemed ratified.

Financial Disclosures

Condominium Associations

Each year, the board of managers must

provide all unit owners with an itemized

accounting of the common expenses for

the preceding year actually incurred or

paid, together with an indication of which

portions were for reserves, capital

expenditures or repairs, or payment of real

estate taxes, and with a tabulation of the

amounts collected pursuant to the budget

or assessment, and showing the net

excess or deficit of income over

expenditures plus reserves.

Each year, the board of

managers must provide

all unit owners with an

itemized accounting of

the common expenses.

in a total amount of not less than the full

insurable replacement cost of the insured

property, less deductibles, but including

coverage sufficient to rebuild the insured

property in compliance with building code

requirements subsequent to an insured loss,

including: Coverage B, demolition costs; and

Coverage C, increased cost of construction

coverage. The combined total of Coverage B

and Coverage C cannot be less than 10% of

each insured building value, or $500,000,

whichever is less.

(2) General Liability Insurance: The

association shall maintain commercial general

liability insurance against claims and liabilities

arising in connection with the ownership,

existence, use, or management of the

property in a minimum amount of $1,000,000,

or a greater amount deemed sufficient in the

judgment of the board, insuring the board, the

association, the management agent, and their

respective employees and agents and all

persons acting as agents. The developer

must be included as an additional insured in

its capacity as a unit owner, manager, board

member, or officer. The unit owners must be

included as additional insured parties but only

for claims and liabilities arising in connection

with the ownership, existence, use, or

management of the common elements. The

insurance must cover claims of one or more

insured parties against other insured parties.

(3) Fidelity Bond: An association with 6 or

more dwelling units must obtain and maintain

a fidelity bond covering persons, including

themanaging agent and its employees who

control or disburse funds of the association,

for the maximum amount of coverage

available to protect funds in the custody or

control of the association, plus the association

reserve fund. The fidelity bond must be in the

full amount of association funds and reserves

in the custody of the association or the

management company.

(4) Director and Officers Coverage: The

board of directors must obtain directors and

officers liability coverage at a level deemed

reasonable by the board, if not otherwise

established by the declaration or bylaws.

Directors and officer’s liability coverage must

extend to all contracts and other actions taken

by the board in their official capacity as

directors and officers, but this coverage shall

exclude actions for which the directors are not

entitled to indemnification under the General

Not For Profit Corporation Act of 1986 or the

declaration and bylaws of the association. The

coverage shall include, but not be limited to,

coverage of: defense of non-monetary actions;

defense of breach of contract; and defense of

decisions related to the placement or

adequacy of insurance. The coverage shall

include as an insured: past, present, and future

board members while acting in their capacity

as members of the board of directors; the

managing agent; and employees of the board

of directors and the managing agent.

Common Interest Community

Associations

The CICAA clearly anticipates that an

association will purchase insurance coverage,

but a common interest community

association’s board members should review

the association’s community instruments to

determine what level of insurance the

association is responsible for maintaining.

Enforcement

Most declarations for both condominium and

common interest associations provide for the

enforcement of covenants and restrictions if

there has been a violation. Similarly, most

associations have adopted rules and

regulations and procedures for enforcing them.

Associations are authorized by law, after

affording alleged violators notice and an

opportunity to be heard, to levy and collect

reasonable fines for violation of the

declaration, by-laws, operating agreement (in

the case of common interest communities) and

rules and regulations of the association.

https://idfpr.illinois.gov/CCICO/

Access to Records

Access to association records can be one of

the most contentious areas of disagreement

between association boards and association

members. In the recent past, the law

governing this issue has been fluid, and

since penalties for board non-compliance

with records access requirements can be

steep, boards are well-advised to seek legal

counsel and to remain abreast of the

relevant law in this area.

Condominium Associations

Any member of an association has the right

to inspect, examine, and make copies of:

• The association’s declaration, bylaws,

and plats of survey and all amendments

to these documents;

• The association’s rules and regulations,

if any;

•

If the association is incorporated, the

association’s articles of incorporation

and all amendments to the articles;

Minutes of all meetings of the board for

the immediately preceding 7 years;

• All current policies of insurance of the

association;

• All contracts, leases and other

agreements then in effect to which the

association is a party or under which the

association or the unit owners have

obligations or liabilities; and

• The books and records for the

association’s current and ten

immediately preceding fiscal years,

including but not limited to itemized and

detailed records of all receipts,

expenditures and accounts.

• Any reserve study

In order to exercise

their rights with respect

to any of these documents, an association

member must submit a written request to the

board or its authorized agent, stating “with

particularity” the records being requested.

An association must generally provide such

records within 10 business days.

Notice to the owner should include (1) the

substance of the violation; (2) the right to be

heard before the board if the owner contests the

violation; (3) the opportunity to cross-examine

the witness who brought the violation to the

attention of the board or who saw the violation

occur; and (4) the right to be represented by an

attorney.

The hearing may take place in closed session, in

front of the board or a hearing panel, and need

not take place at an open board meeting.

However, any decision by the board on the

alleged violation must occur at an open and

properly noticed board meeting. Should an

owner elect to contest the violation, the owner

and/or his attorney should have the opportunity

to cross-examine the witness who brought the

violation to the attention of the board or who saw

the violation occur and, if applicable, to review

any documentation relied upon by the board.

Collection of fines can

be accomplished in the

same manner as

collection of delinquent

assessments.

The board, after considering the testimony and

information presented at a hearing, can levy and

collect a reasonable fine against the owner.

Collection of fines can be accomplished in the

same manner as collection of delinquent

assessments.

Any attorneys' fees incurred by the condominium

association arising out of a default by any unit

owner, his or her tenant, invitee or guest in the

performance of any of the provisions of the

condominium instruments, rules and regulations

or any applicable statute or ordinance shall be

added to, and deemed a part of, his respective

share of the common expense.

Attorneys’ fees and court or arbitration costs fees

pertaining to a common interest community’s

collection of a member's or unit owner's financial

obligation to the association may be added to

and deemed a part of a member's or unit owner's

respective share of the common expenses.

https://idfpr.illinois.gov/CCICO/

Unless otherwise directed by a court order,

associations are not required to make the following

records available for a member’s inspection,

examination or copying:

(1)Documents relating to appointment,

employment, discipline or dismissal of

association employees;

(2)Documents relating to actions pending against

or on behalf of the association or its board of

managers in a court or administrative tribunal;

(3)Documents relating to actions threatened

against, or likely to be asserted on behalf of, the

association or board in a court or administrative

tribunal;

(4)Documents relating to common expenses or

other charges owed by a member other than the

requesting member; and

(5)Documents provided by an association in

connection with the lease, sale or other transfer

of a unit by a member other than the requesting

member.

The “Chicago Exception”

An amendment to the City of Chicago’s

Condominium Ordinance which became effective

June 27, 2018 specifically exempts condominium

associations within the City of Chicago from certain

of the records access requirements of the CPA.

The Ordinance now provides that no unit owner,

other than a unit owner who is a member of an

association’s board of managers, shall have the

right to inspect, examine or make copies of the

association’s records containing the unit owners’

email addresses and telephone numbers. A

condominium association may choose to “opt out”

of this prohibition against inspection and

examination of records containing email addresses

and telephone numbers by a 2/3 vote of all unit

owners.

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The CPA also gives association members the

right to inspect, examine, and make copies of

another subset of documents, but with respect

to these, the member must not only identify the

records “with particularity” but also state “a

purpose that relates to the association” for

requesting them.

These documents are:

• A current listing of the names, addresses,

email addresses, telephone numbers and

weighted vote of all members entitled to vote;

and

• Ballots and proxies related to ballots for all

matters and voted on by the members of the

association during the immediately preceding

12 months, including but not limited to the

election of members of the board.

An association must generally provide such

records within 10 business days. The board

may require the member to certify in writing

that he or she will not use the information for

any commercial purpose (that is, for sale,

resale or solicitation or advertisement for sales

or services) or any purpose that does not relate

to the association and may impose a fine upon

any person who makes a false certification.

The association may charge the requesting

member the actual cost to the association of

retrieving and making requested records

available for inspection and examination and, if

a member requests copies of the records, the

association shall charge its actual costs of

reproducing the records to the requesting

member.

Any member who prevails in an enforcement

action to compel examination of (1) records

containing the current listing of the names,

addresses, email addresses, telephone

numbers and weighted vote of all members

entitled to vote; or (2) ballots and proxies

related to ballots for all matters voted on by the

members of the association during the

immediately preceding 12 months, including

but not limited to the election of members of the

board of managers, is entitled as a matter of

law to recover reasonable attorney's fees and

costs from the association if the court finds

that the board of directors acted in bad faith in

denying the member's request.

https://idfpr.illinois.gov/CCICO/

22.1 Disclosures,” referring to the Section of the

CPA which requires them.

Common Interest Community

Associations

The CICAA requires that boards

maintain specific records of the association

and, within 30 days' of receiving a member's

written request make them available for

examination and copying at convenient hours

on weekdays by any member or unit owner.

These are:

• Copies of the recorded declaration, other

community instruments, other duly

recorded covenants and bylaws and any

amendments, articles of incorporation,

articles of organization, annual reports, and

any rules and regulations adopted by the

board;

• 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

and any other expenses incurred, and

copies of all contracts, leases, or other

agreements entered into by the board;

• The minutes of all meetings of the board

(which must be maintained for not less

than seven years).

• Any reserve study.

If a member provides a written statement of a

“proper purpose”, the following documents

must be made available to members for

inspection and copying:

• Ballots and proxies related thereto, if any,

for any election held for the board and for

any other matters voted on by the

members, (which must be maintained for

not less than one year);

• Such other records of the board as are

available for inspection by members of a

not-for-profit corporation pursuant to

Section 107.75 of the General Not For

Profit

Corporation Act of 1986.

If the board fails to provide properly requested

records within 30 days of receiving a written

request, the member may seek appropriate

relief and is entitled to an award of reasonable

attorney's fees and costs if the member prevails

and the court finds that such failure is due to the

acts or omissions common interest community's

of the board of managers.

Disclosures to Prospective

Purchasers

Condominium Associations

The CPA grants rights to certain documents

(commonly referred to as "Section 22.1

Disclosures", referring to the Section of the CPA

which requires them) not only to unit owners, but

to prospective purchasers buying a

condominium unit from an owner other than the

developer

(who are subject to more rigorous disclosure

requirements).

If the prospective purchaser asks for them, the

unit owner/seller is required to obtain from the

board and make available for inspection, the

following: (1) a copy of the declaration, bylaws,

other condominium instruments and any rules

and regulation; (2) a statement of any liens,

including a statement of the account of the unit

setting forth the amounts of unpaid assessments

and other charges due and owing; (3) a

statement of any capital expenditures

anticipated by the unit owner’s association

within the current or succeeding two fiscal

years; (4) a statement of the status and amount

of any reserve for replacement fund and any

portion of such fund earmarked for any specified

project by the board; (5) a copy of the statement

of financial condition

of the unit owner’s

association for the last fiscal year for which such

a statement is available; (6) a statement of the

status of any pending suits or judgments in

which the unit owner’s association is a party; (7)

a statement setting forth what insurance

coverage is provided for all unit owners by the

unit owner’s association; (8) a statement that

any improvement or alterations made to the unit,

or the limited common elements assigned to

the unit, by the prior(selling) unit owners are

in good faith believed to be in compliance

with the condominium instruments; and

An association may charge a reasonable fee

for the cost of retrieving and copying records.

The board’s failure to provide properly

requested records or to respond to a written

request for records within 30 days is deemed

to be a denial by the board.

https://idfpr.illinois.gov/CCICO/

The principal officer (generally, the president) of

the board or such other officer as is specifically

designated must furnish the above information

within 30 days after receiving a member's written

request for such information. The board may

charge the unit seller a reasonable fee covering

the direct out-of-pocket cost of copying and

providing such information.

Anti-Discrimination and "Reasonable

Accommodation"

Federal law prohibits discrimination in housing by

associations and their agents and employees on

the basis of race, color, national origin, sex,

religion, disability, and familial status (children in

the family). In addition, the Illinois Human Rights

Act prohibits discrimination on the basis of

ancestry, marital status, sexual orientation or

order of protection status.

Examples of discriminatory rules are those that

prohibit children from using recreational areas or

other services, such as using the swimming pool.

Section 18.4(q) of the CPA specifically requires

condominium boards to “reasonably

accommodate the needs of a unit owner who is a

person with a disability as required by the federal

Civil Rights Act of 1968, the Human Rights Act

and any applicable local ordinances in the

exercise of its powers with respect to the use of

common elements or approval of modifications in

an individual unit.”

Just as it is illegal for any association to

discriminate against persons because of their

race, it is illegal to discriminate against them

because they have children. Also, physically

disabled unit owners may have a right to install

physical accommodations (at the disabled

person’s own expense) such as ramps, handrails

and similar improvements to enable them to

have the full use of the condominium property or

their unit.

(9) the identity and mailing address of the

principal officer (generally the president of

the board) of the unit owner’s association or

of the other officer or agent as is specifically

designated to receive notices.

The association must provide this

information when requested to do so in

writing and within 30 days of the request. A

reasonable charge covering the direct out-

of-pocket costs of providing and copying this

information may be charged by the

association or its board to the unit owner/

seller for providing this information.

Common Interest Community

Associations

The CICAA, like the CPA, also grants rights

to prospective purchasers. If the

prospective purchaser asks for them, the

board must make the following documents

available for inspection to the prospective

purchaser: (1) A copy of the declaration,

other instruments, and any rules and

regulations; (2) a statement of any liens,

including a statement of the account of the

unit setting forth the amounts of unpaid

assessments and other charges due and

owing; (3) a statement of any capital

expenditures anticipated by the association

within the current or succeeding 2 fiscal

years; (4) a statement of the status and

amount of any reserve or replacement fund

and any other fund specifically designated

for association projects; (5) a copy of the

statement of financial condition of the

association for the last fiscal year for which

such a statement is available; (6) a

statement of the status of any pending suits

or judgments in which the association is a

party; and (7) a statement setting forth what

insurance coverage is provided for all

members or unit owners by the association

for common properties.

https://idfpr.illinois.gov/CCICO/

The following is a non-exclusive list of the duties

condominium and common interest community

association boards are responsible for

performing:

• Providing for the operation, care, upkeep,

maintenance, replacement and improvement

of the common elements.

• Preparing, adopting and distributing the

annual budget for the property.

• Levying and expending assessments.

• Collecting assessments from unit owners.

• Providing for the employment and dismissal

of the personnel necessary or advisable for

the maintenance and operation of the

common elements.

• Obtaining adequate and appropriate kinds of

insurance.

• Owning, conveying, encumbering, leasing,

and otherwise dealing with units conveyed to

or purchased by it.

• Adopting and amending rules and

regulations covering the details of the

operation and use of the property.

• Keeping detailed, accurate records of the

receipts and expenditures affecting the use

and operation of the property.

• Having access to each unit from time to time

as may be necessary for the maintenance,

repair or replacement of any common

elements or for making emergency repairs

necessary to prevent damage to the

common elements or to other units.

• Paying real property taxes or other special

assessments.

• Imposing charges for late payment of a unit

owner's proportionate share of the common

expenses, or any other expenses lawfully

agreed upon, and after notice and an

opportunity to be heard, levying reasonable

fines for violation of the declaration, by-laws,

and rules and regulations of the association.

An association with rules limiting pets must

generally accept “assistance animals” – a broad

term used by the U.S. Department of Housing

and Urban Development (“HUD”) to encompass

not only “service animals” which are exclusively

dogs that have been specially trained to

perform specific tasks or do work for the benefit

of a disabled individual, but also “emotional

support animals” which includes any animal

(including, but not limited to, dogs, cats, birds,

reptiles, etc.) which provides disability-related

assistance to its owner but need not have been

specifically trained or certified in any way. HUD

makes clear that all assistance animals in any

housing context, including private residential

associations, must be considered under the

Federal Fair Housing Act’s “reasonable

accommodation” requirementsAll boards have a

responsibility to reasonably accommodate the

needs of a unit owner who is a person with a

disability as required by the Civil Rights Act of

1968, the Illinois Human Rights Act and any

applicable local ordinances in the exercise of its

powers with respect to the use of the common

elements or approval of modifications in an

individual unit. The individual whose needs are

being accommodated may be asked to pay the

costs of any such modifications.

Rights and

Responsibilities of the

Board

Summary

Condominium association and common interest

community association board members owe a

fiduciary duty to the association and its

members. Board members’ fiduciary duties

include acting with undivided loyalty in the best

interests of the association. Board members

must exercise reasonable business judgment

and make decisions on an informed basis with a

good faith belief that their decisions reflect the

association’s best interests. Boards must

exercise for their association all powers, duties

and authority vested in the association’s

governing instruments except for such powers

reserved by law to the members of the

association.

https://idfpr.illinois.gov/CCICO/

Board Matters

Association boards must meet at least four times

a year; board meetings are open to all unit

owners, who must be given least 48 hours prior to

the meeting by sending notice by using a

prescribed delivery method or by posting copies

of notices of meetings in entranceways,elevators,

or other conspicuous places in the common areas

of the common interest community at least 48

hours prior to the meeting (condominium

associations must also give notice o to: (i) each

unit owner who has provided the association with

written authorization to conduct business by

acceptable technological means, and (ii) to the

extent that the condominium instruments of an

association require, to each other unit owner by

mail or delivery). (CPA Secs. 18(a)(8)(D), 19(a)

(10)l CICAA Secs. 1-40(b((4), 1-30).

Budgets

Both the CPA and the CICAA require that each

year, a board must prepare and distribute a

detailed proposed annual budget to all

association members. These detailed proposed

annual budgets must conform to the provisions of

Sec. 9(c)(1) of the CPA and Sec. 1-45 of the

CICAA, respectively.

The CPA requires that the board provide unit

owners with a copy of the detailed proposed

annual budget at least 25 days before the date of

the board meeting at which the board will adopt

the proposed budget. (CPA Sec, 18(a)(6)).

Common interest community association boards

are required by the CICAA to provide members

with a copy of the proposed annual budget at

least 30 days but not more than 60 days prior to

the adoption thereof by the board. (CICAA, Sec,

1-45).

Common Elements

“Common elements” is defined in the CPA to

mean all portions of the property except the units,

including limited common elements unless

otherwise specified. The CPA expressly states

that the board shall administer the common

elements.

https://idfpr.illinois.gov/CCICO/

Common Interest Community

Associations (CICAA Section 1-30)

(a) The board shall meet at least 4 times

annually.

provide for the maintenance, repair, and

replacement of the common areas and

payments therefor, including the method of

approving payment vouchers.

(e) The association may engage the services

of a manager or management company.

(g) The board shall have the power, after

notice and an opportunity to be heard, to levy

and collect reasonable fines from members

or unit owners for violations of the

declaration, bylaws, operating agreement,

and rules and regulations of the common

interest community association.

Acceptable Technological Means

Technological means including electronic

transmission over the internet or other

network, whether by direct connection,

intranet, telecopier, electronic mail, and any

generally available technology that, by rule of

the association, is deemed to provide

reasonable security, reliability, identification,

and verifiability. (CPA, Sec. 18.8(b); CICAA

Sec. 1-5)).

Assessments

Association board members are legally

obligated to collect assessments from the

unit owners. Each unit owner has a duty to

pay his or her share of common expenses in

a timely manner. This obligation is generally

derived from those provisions of the CICAA

at Secs. 1-40(b)(4); 1-40(b)(5); and 1-45(a)

and specifically set forth in Sec. 18.4(d) of

the CPA.

Elections must be conducted in accordance with

the provisions of Sec. 18 of the CPA

(condominium associations) or Sec. 1-25 of the

CICAA (common interest community

associations).

Inspection of Documents

Boards must make records identified in the CPA

and CICAA available for inspection and copying

by members of condominium and common

interest community associations, respectively.

Unit owners must make a written request

conforming to statutory requirements to inspect

and copy documents and may be charged a

reasonable fee for doing so. (CPA Secs. 19(b)

and 19(c); CICAA Secs. 1-30(i)(1)).

Reserve Study

A “reserve study” is a sort of “business plan” for

the maintenance of an association’s assets. As a

general rule, a reserve study includes a physical

analysis and a financial analysis and assesses

the state of the common elements. A “reserve

study” is often used by association boards to help

determine whether the association is maintaining

reasonable reserves for capital expenditures and

deferred maintenance for repair of replacement

of the common elements as required by Sec. 9(c)

(2) of the CPA and, in general, at Secs. 1-5 and

1-45 of the CICAA.

Statements of Account

The CPA requires boards, upon 10 days’ notice

to the manager or board of managers and

payment of a reasonable fee, to furnish any unit

owner a statement of his account setting forth

the amount of any unpaid assessments or other

charges due and owing from such owner. (CPA,

Sec. 18(b)(13)(i)).

Unit Owner Use and Enjoyment

Condominium boards have the right to access

individual units as may be necessary to facilitate

the maintenance, repair or replacement of any

common elements or for making emergency

repairs necessary to percent damage to the

common elements or other units. (CPA Sec.

18.4(j)).

https://idfpr.illinois.gov/CCICO/

All unit owners share the right to use the

common elements subject to reasonable

regulations as well as responsibility for their

maintenance through the payment of

assessments. (CPA, Secs. 2(e);

18(k)).An analogous provision of the CICAA

defines “common areas" to mean the portion of

the property other than a unit. The bylaw of a

common interest community, or its operating

agreement, must provide for the maintenance,

repair, and replacement of the common areas

and payments therefor, including the method of

approving payment vouchers. (CICAA, Secs.

1-5 and 1-30(c)).

Contracts

Condominium and common interest community

associations are prohibited from entering into a

contract with a current board member, or with a

corporation, limited liability company, or

partnership in which a board member or a

member of his or her immediate family (defined

to mean the board’s member’s spouse,

parents, siblings and children) has 25% or

more interest, unless it provides members

notice of intent to enter into the contract within

20 days after a decision is made to enter into

the contract and the members are afforded an

opportunity by filing a petition, signed by 20%

of the membership, for an election to approve

or disapprove the contract. Any such petition

must be filed within 20 days after such notice

and such election shall be held within 30 days

after filing the petition. (CPA Sec. 18(a)(16);

CICAA Sec. 1-30(b)).

Elections

The CPA requires that association members

hold an annual meeting, one of the purposes of

which is to elect board members from among

the unit owners. (CPA Sections 18(a)(1);

18(21)(b)(3)).

The CICAA requires that elections for the board

from among the membership be held in

accordance with the community instruments; an

election must be held at least once each 24

months. (CICAA Sec. 1-25(a)).

The mission of the CCIC Ombudsperson is to provide information to unit

owners, condominium and common interest community associations and

their respective boards in order that they all may better understand their

rights and obligations under the Condominium Property Act and the

Common Interest Community Association Act.

https://idfpr.illinois.gov/CCICO/

You may submit your inquiry to the CCIC Ombudsperson by completing

the Inquiry Form, a fillable PDF, and then emailing it to

FPR.CCICO@illinois.gov.

Call the Toll Free Number

You may call the CCIC Ombudsperson on its toll free number at

844.856.5193. However, please note that you will simply be directed back

to this website and will not be able to leave a voice message.