By: David Hartwell, Esq.
Penland & Hartwell, LLC
The Condominium and Common Interest Community Ombudsperson Act (765 ILCS 615/1) – The Ombudsperson Act has been amended again, requiring the Department of Professional Regulation to post a new website to provide owners with information resources. The amendment has extended the deadline for an association to adopt a written policy for resolving unit owner complaints to January 2019. Effective July 1, 2020, owners may make written requests to the Ombudsperson for assistance. At this time, no Ombudsperson has been appointed.
Changes to Open Meetings (765 ILCS 605/18(a)(8) and 765 ILCS 160/1-40(b)(5) – In response to the Palm v. 2800 Lake Shore Drive ruling addressing meetings of board members, effective January 1, 2017, board members may now meet in closed session (sometimes referred to as “Executive Session”) to discuss: (1) pending, probable or imminent litigation; (2) third party contracts or information regarding the appointment, employment, engagement, or dismissal of an employee, independent contractor, agent, or other provider of services; (3) interview a potential employee, independent contractor, agent, or other provider of services; (4) violations of rules and regulations; (5) unit owner’s unpaid share of common expenses; and (6) consult with legal counsel on any matter. Any action taken by the board in a closed meeting must be ratified by a majority of the board at a properly noticed meeting.
Pledge of Assessments for Condominiums (765 ILCS 605/18.4(m)) – Effective January 1, 2017, this amendment deletes the first clause of Section 18.4(m) which states “Unless the condominium instruments expressly provide to the contrary…”, thus giving all boards of directors the authority to pledge and assign the right of future income from common expenses and to mortgage or pledge substantially all assets of the association. This will help associations obtain financing for special assessments and capital improvement projects.
More Technological Means for Common Interest Communities (765 ILCS 160/1-5) – Effective January 1, 2017, the Common Interest Community Association Act expanded the definition of “Acceptable Technological Means” to include “without limitation, electronic transmission over the Internet or other network whether by direct communication, 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.”
Assignment by Successor Developer (7765 ILCS 605/9.5 and 65 ILCS 160/1-47) – Effective January 1, 2017, the ICPA and CICAA will be amended to add: “Successor Developers. Any assignment of a developer’s interest in the property is not effective until the successor: (i) obtains the assignment in writing; and (ii) records the assignment.”
CICAA adds Conformity Clause (765 160/1-60) – Effective January 1, 2017, CICAA is amended to now provide that for any provision of the governing instruments which do not conform with the Act or other applicable law, the association may correct such inconsistency by an amendment, adopted by two-thirds (2/3) of the board of directors, without a membership vote.
Not for Profit Act Requires Three Directors (805 ILCS 105/101.01) - Effective January 1, 2017 the Secretary of State may dissolve any corporation administratively if it fails to maintain at least three directors.