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Public Act 098-1135 Public Act 1135 98TH GENERAL ASSEMBLY |
Public Act 098-1135 | HB4204 Enrolled | LRB098 15146 HEP 50122 b |
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| AN ACT concerning condominium property.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 1. Short title. This Act may be cited as the | Condominium and Common Interest Community Ombudsperson Act. | Section 5. Applicability. This Act applies to all | condominium associations governed by the Condominium Property | Act and all common interest community associations governed by | the Common Interest Community Association Act. | Section 10. Findings. The General Assembly finds as | follows:
| (1) Managing condominium property or common interest | community property is a complex responsibility. Unit | owners and persons charged with managing condominium | property or common interest community property may have | little or no prior experience in managing real property, | operating a not-for-profit association or corporation, | complying with the laws governing condominium property or | common interest community property, and interpreting and | enforcing restrictions and rules imposed by applicable | instruments or covenants. Unit owners may not fully | understand their rights and obligations under the law or |
| applicable instruments or covenants. Mistakes and | misunderstandings are inevitable and may lead to serious, | costly, and divisive problems. This Act seeks to educate | unit owners, condominium associations, common interest | community associations, boards of managers, and boards of | directors about the Condominium Property Act and the Common | Interest Community Association Act. Effective education | can prevent or reduce the severity of problems within a | condominium or common interest community. | (2) Anecdotal accounts of abuses within condominiums | and common interest communities create continuing public | demand for reform of condominium and common interest | community property law. This results in frequent changes to | the law, making it difficult to understand and apply, and | imposes significant transitional costs on these | communities statewide. By collecting empirical data on the | nature and incidence of problems within these communities, | this Act will provide a sound basis for prioritizing reform | efforts, thereby increasing the stability of condominium | and common interest community property law. | Section 15. Definitions. As used in this Act:
| "Association" means a condominium association or common | interest community association as defined in this Act.
| "Board of managers" or "board of directors" means:
| (1) a common interest community association's board of |
| managers or board of directors, whichever is applicable; or
| (2) a condominium association's board of managers or | board or directors, whichever is applicable.
| "Common interest community" means a property governed by | the Common Interest Community Association Act.
| "Common interest community association" has the meaning | ascribed to it in Section 1-5 of the Common Interest Community | Association Act.
| "Condominium" means a property governed by the Condominium | Property Act.
| "Condominium association" means an association in which | membership is a condition of ownership or shareholder interest | of a unit in a condominium, cooperative, townhouse, villa, or | other residential unit which is part of a residential | development plan and that is authorized to impose an | assessment, rents, or other costs that may become a lien on the | unit or lot, and includes a unit owners' association as defined | in subsection (o) of Section 2 of the Condominium Property Act | and a master association as defined in subsection (u) of | Section 2 of the Condominium Property Act.
| "Declaration" has the meaning ascribed to it in:
| (1) Section 1-5 of the Common Interest Community | Association Act; or
| (2) Section 2 of the Condominium Property Act.
| "Department" means the Department of Financial and | Professional Regulation.
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| "Director" means the Director of the Division of | Professional Regulation.
| "Division" means the Division of Professional Regulation | within the Department of Financial and Professional | Regulation.
| "Office" means the Office of the Condominium and Common | Interest Community Ombudsperson established under Section 20 | of this Act.
| "Ombudsperson" means the Condominium and Common Interest | Community Ombudsperson employed under Section 20 of this Act.
| "Person" includes a natural person, firm, association, | organization, partnership, business trust, corporation, | limited liability company, or public entity.
| "Secretary" means the Secretary of Financial and | Professional Regulation.
| "Unit" means a part of the condominium property or common | interest community property designed and intended for any type | of independent use.
| "Unit owner" has the meaning ascribed to it in: | (1) subsection (g) of Section 2 of the Condominium | Property Act; or | (2) Section 1-5 of the Common Interest Community | Association Act. | Section 20. Office of the Condominium and Common Interest | Community Ombudsperson.
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| (a) There is created in the Division of Professional | Regulation within the Department of Financial and Professional | Regulation, under the supervision and control of the Secretary, | the Office of the Condominium and Common Interest Community | Ombudsperson.
| (b) The Department shall employ an Ombudsperson and other | persons as necessary to discharge the requirements of this Act. | The Ombudsperson shall have the powers delegated to him or her | by the Department, in addition to the powers set forth in this | Act.
| (c) Information and advice provided by the Ombudsperson has | no binding legal effect and is not subject to the rulemaking | provisions of the Illinois Administrative Procedure Act. | Section 25. Training and education.
On or before July 1, | 2018, the Ombudsperson shall offer training, educational | materials, and courses to unit owners, associations, boards of | managers, and boards of directors in subjects relevant to: (i) | the operation and management of condominiums and common | interest communities; and (ii) the Condominium Property Act and | the Common Interest Community Association Act.
| Section 30. Website.
| (a) The Office shall maintain on the Department's website | the following information:
| (1) the text of this Act, the Condominium Property Act, |
| the Community Interest Community Association Act, and any | other statute, administrative rule, or regulation that the | Ombudsperson determines is relevant to the operation and | management of a condominium association or common interest | community association;
| (2) information concerning nonjudicial resolution of | disputes that may arise within a condominium or common | interest community;
| (3) a description of the services provided by the | Ombudsperson and information on how to contact the | Ombudsperson for assistance; and
| (4) any other information that the Ombudsperson | determines is useful to unit owners, associations, boards | of managers, and boards of directors.
| (b) The Office shall make the information described in | subsection (a) of this Section available in printed form. | Section 35. Written policy for resolving complaints.
| (a) Each association, except for those outlined in Section | (b) of this Section, shall adopt a written policy for resolving | complaints made by unit owners. The association shall make the | policy available to all unit owners upon request. The policy | must include:
| (1) a sample form on which a unit owner may make a | complaint to the association;
| (2) a description of the process by which complaints |
| shall be delivered to the association;
| (3) the association's timeline and manner of making | final determinations in response to a unit owner's | complaint; and | (4) a requirement that the final determination made by | the association in response to a unit owner's complaint be: | (i) made in writing;
| (ii) made within a reasonable time after the unit | owner's original complaint; and
| (iii) marked clearly and conspicuously as "final".
| (b) Common interest community associations exempt from the | Common Interest Community Association Act are not required to | have a written policy for resolving complaints. | (c) No later than 180 days after the effective date of this | Act, associations existing on the effective date of this Act, | except for those identified in subsection (b) of this Section, | must establish and adopt the policy required under this | Section.
| (d) Associations first created after the effective date of | this Act, except for those identified in subsection (b) of this | Section, must establish and adopt the policy required under | this Section at the time of initial registration as required by | Section 65 of this Act.
| (e) A unit owner may not bring a request for assistance | under Section 40 of this Act for an association's lack of or | inadequacy of a written policy to resolve complaints, but may |
| notify the Department in writing of the association's lack of | or inadequacy of a written policy. An association that fails to | comply with this Section is subject to subsection (g) of | Section 65 of this Act.
| Section 40. Requests for assistance.
| (a) Beginning on July 1, 2019, unit owners meeting the | requirements of this Section may make a written request, as | outlined in subsection (f) of this Section, to the Ombudsperson | for assistance in resolving a dispute between a unit owner and | an association that involves a violation of the Condominium | Property Act or the Common Interest Community Property Act.
| (b) The Ombudsperson shall not accept requests for | resolutions of disputes with community association managers, | supervising community association managers, or community | association management firms, as defined in the Community | Association Manager Licensing and Disciplinary Act.
| (c) The Ombudsperson shall not accept requests for | resolutions of disputes for which there is a pending complaint | filed in any court or administrative tribunal in any | jurisdiction or for which arbitration or alternative dispute | resolution is scheduled to occur or has previously occurred.
| (d) The assistance described in subsection (a) of this | Section is available only to unit owners. In order for a unit | owner to receive the assistance from the Ombudsperson described | in subsection (a) of this Section, the unit owner must:
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| (1) owe no outstanding assessments, fees, or funds to | the association, unless the assessments, fees, or funds are | central to the dispute;
| (2) allege a dispute that was initiated or initially | occurred within the past 2 calendar years of the date of | the request;
| (3) have made a written complaint pursuant to the unit | owner's association's complaint policy, as outlined in | Section 35, which alleges violations of the Condominium | Property Act or the Common Interest Community Association | Act;
| (4) have received a final and adverse decision from the | association and attach a copy of the association's final | adverse decision marked "final" to the request to the | Ombudsperson; and
| (5) have filed the request within 30 days after the | receipt of the association's final adverse decision.
| (e) A unit owner who has not received a response, marked | "final", to his or her complaint from the association within a | reasonable time may request assistance from the Ombudsperson | pursuant to subsection (a) of this Section if the unit owner | meets the requirements of items (1), (2), and (3) of subsection | (d) of this Section. A unit owner may not request assistance | from the Ombudsperson until at least 90 days after the initial | written complaint was submitted to the association. The | Ombudsperson may decline a unit owner's request for assistance |
| on the basis that a reasonable time has not yet passed.
| (f) The request for assistance shall be in writing, on | forms provided by the Office, and include the following:
| (1) the name, address, and contact information of the | unit owner;
| (2) the name, address, and contact information of the | association;
| (3) the applicable association governing documents | unless the absence of governing documents is central to the | dispute;
| (4) the date of the final adverse decision by the | association;
| (5) a copy of the association's written complaint | policy required under Section 35 of this Act;
| (6) a copy of the unit owner's complaint to the | association with a specific reference to the alleged | violations of the Condominium Property Act or the Common | Interest Community Association Act;
| (7) documentation verifying the unit owner's ownership | of a unit, such as a copy of a recorded deed or other | document conferring title; and
| (8) a copy of the association's adverse decision marked | "final", if applicable.
| (g) On receipt of a unit owner's request for assistance | that the Department determines meets the requirements of this | Section, the Ombudsperson shall, within the limits of the |
| available resources, confer with the interested parties and | assist in efforts to resolve the dispute by mutual agreement of | the parties.
| (h) The Ombudsperson shall assist only opposing parties who | mutually agree to participate in dispute resolution.
| (i) A unit owner is limited to one request for assistance | per dispute. The meaning of dispute is to be broadly | interpreted by the Department.
| (j) The Department has the authority to determine whether | or not a final decision is adverse under paragraph (4) of | subsection (d) of this Section.
| (k) The Department shall establish rules describing the | time limit, method, and manner for dispute resolution.
| (l) A request under the Freedom of Information Act for | information does not constitute a request for assistance under | this Section.
| Section 45. Confidentiality. All information collected by | the Department in the course of addressing a request for | assistance pursuant to Section 40 shall be maintained for the | confidential use of the Department and shall not be disclosed. | The Department shall not disclose the information to anyone | other than law enforcement officials or regulatory agencies | that have an appropriate regulatory interest as determined by | the Secretary. Information and documents disclosed to a | federal, State, county, or local law enforcement agency shall |
| not be disclosed by that agency for any purpose to any other | agency or person. | Section 50. Reports.
| (a) The Department shall submit an annual written report on | the activities of the Office to the General Assembly, no later | than October 1 of each year, with the initial report being due | October 1, 2020. The report shall include all of the following:
| (1) annual workload and performance data, including | the number of requests for assistance received, the manner | in which requests were or were not resolved and the staff | time required to resolve the requests. For each category of | data, the report shall provide subtotals based on the type | of question or dispute involved in the request; and
| (2) analysis of the most common and serious types of | disputes within condominiums and common interest | communities, along with any recommendations for statutory | reform to reduce the frequency or severity of those | disputes.
| Section 55. Registration.
| (a) Except as otherwise provided in subsections (d) and (f) | of this Section, every association shall register with the | Department in a form and manner specified by the Department. A | registration shall be valid for 2 years. The initial | registration for an association existing on the effective date |
| of this Act is due one year after the effective date of this | Act, or at such time as the Department has adopted rules and | forms for registration, whichever is later.
| (b) Newly created associations required to register with | the Department must register no later than 90 days after the | association has assumed control of a property.
| (c) The Department may issue a certification of | registration under this Act to any association that applies to | the Department on forms provided by the Department and provides | the following:
| (1) the business name of the association seeking | registration;
| (2) the business address or addresses and contact | information of the association seeking registration;
| (3) the name, address, and contact information for the | association's authorized agent or management company and | management company representative;
| (4) a certification that the applicant has a written | policy for resolving complaints as required by Section 35 | of this Act;
| (5) the initial date of recording of the declaration;
| (6) the recording number or book and page for the | document that constitutes the declaration; and
| (7) a certification that the association will comply | with all other requirements of this Act and rules | established for the implementation of this Act.
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| (d) This Section does not apply to a unit, or the owner | thereof, if the unit is a timeshare property subject to the | Real Estate Timeshare Act of 1999.
| (e) If any of the information submitted under subsection | (c) of this Section changes, the association shall provide | updated information to the Department no later than 60 days | after the change.
| (f) A common interest community association is exempt from | registration if it is exempt from the Common Interest Community | Association Act.
| (g) If an association fails to initially register as | provided in subsection (a) of this Section or fails to timely | renew its registration, the Department may impose a late charge | or late fee against the association. If an association fails to | properly register within 2 years after the effective date of | this Act, or fails to renew its registration on 3 or more | occasions, the association is ineligible to impose or enforce a | lien for common expenses or to pursue any action or employ any | enforcement mechanism otherwise available to it in enforcement | of a lien for common expenses until it is validly registered | pursuant to this Section. A lien for common expenses previously | filed during a period in which the association was registered | pursuant to this Section shall not be extinguished by a lapse | in the association's registration, nor shall the common expense | debt reflected by the lien or court action be deemed invalid, | but any pending enforcement proceedings related to the lien |
| shall be suspended and any applicable time limits tolled until | the association is again validly registered pursuant to this | Section.
Nothing contained herein shall be deemed to invalidate | any claim for common expenses or other enforcement mechanism, | even if the claim arose while the association was not | registered. | Section 60. Rules. The Department may adopt rules for the | administration and enforcement of this Act. Any rule adopted | under this Act is subject to the rulemaking provisions of the | Illinois Administrative Procedure Act. | Section 65. State Lawsuit Immunity Act. Nothing in this Act | shall be construed to constitute a waiver of the immunity of | the State, Department, Division, Office, or Ombudsperson, or | any officer, employee, or agent thereof under the State Lawsuit | Immunity Act. | Section 70. Repeal. This Act is repealed on July 1, 2021. | Section 75. The Condominium Property Act is amended by | adding Section 35 as follows: | (765 ILCS 605/35 new) | Sec. 35. Compliance with the Condominium and Common | Interest Community Ombudsperson Act. Every unit owners' |
| association must comply with the Condominium and Common | Interest Community Ombudsperson Act and is subject to all | provisions of the Condominium and Common Interest Community | Ombudsperson Act. This Section is repealed July 1, 2021. | Section 80. The Common Interest Community Association Act | is amended by adding Section 1-90 as follows: | (765 ILCS 160/1-90 new) | Sec. 1-90. Compliance with the Condominium and Common | Interest Community Ombudsperson Act. Every common interest | community association, except for those exempt from this Act | under Section 1-75, must comply with the Condominium and | Community Interest Community Ombudsperson Act and is subject to | all provisions of the Condominium and Community Interest | Community Ombudsperson Act. This Section is repealed July 1, | 2021.
| Section 999. Effective date. This Act takes effect July 1, | 2016.
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Effective Date: 7/1/2016
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