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FOREWORD

A large number o new laws were enacted in 2009 that aect condominium andhomeowners associations. In contrast to past years, many o 2009’s more importantlegislative initiatives did not involve amendments to the Illinois CondominiumProperty Act (“ICPA”). This Foreword highlights all o these legislative changes, and this 2010 edition o Arnstein & Lehr LLP’s Illinois Condominium Property Act booklet includes all o thenew amendments to the ICPA.

Manager Licensing

The Community Association Manager Licensing and Disciplinary Act mandates thateveryone who manages condominium and homeowners associations will haveto obtain and maintain a proessional license; however, the licensure requirementwill not become eective until mid2011, at the very earliest. Most CommunityAssociation Managers will have to pass an exam and provide proo o at least 20hours o approved community association management training classes to obtaina license; persons who have been working in community association managementor at least ve years or have a training designation rom CAI or another recognizedorganization can obtain a license without talking an exam. The Act also provides ordisciplinary action against licensed Community Association Managers. This legislation has not been added to the Illinois Condominium Property Act, butthe ull text o the Community Association Manager Licensing and Disciplinary Act isavailable on our website at http://www.arnstein.com/condominiums.

Electronic Notices and Electronic Voting

Eective January 1, 2010, Public Act 960649 modied the Illinois NotorProt Corporation Act (“NFPCA”) to authorize notorprot corporations to useemail and other electronic communication technology or ocial notices andother communications with members. While this legislation was not writtenspecically or condominium associations, the provisions o the NFPCA do apply tocondominium associations to the extent that those provisions do not confict withthe Illinois Condominium Property Act (“ICPA”) or an association’s own declaration orbylaws. Thereore, not all o the changes made by this legislation are applicable tocondominium associations, but the changes that are applicable are signicant.

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As amended, NFPCA Section 101.80(g) now permits ocial notices to be “delivered”to a member’s email address or ax number as it appears in the corporation’srecords. Since ICPA Section 18(b)(6)  which trumps all contrary provisions in anassociation’s declaration  already allows notices to unit owners to be mailed orotherwise “delivered”, a condominium association may now lawully “deliver” noticeselectronically i a unit owner has designated an email address or ax number as hiselectronic “address” or ocial notices. Whether and under what circumstances anassociation may distribute documents other than notices (e.g., proposed budgets,annual nancial reports, annual meeting materials, etc.) via electronic means is lesscertain.Using electronic technology can save postage, photocopying and administrativecosts, and it will also be good or the environment. However, electronic transmissiono notices is optional, and associations that are not comortable with technologymay continue to deliver paper notices. Similarly, any unit owner who preers toreceive paper notices can decline to provide an email address, and thereby requirethat paper notices continue to be mailed or otherwise delivered to a specied postalmailing address.Another NFPCA change that should be applicable to most condominium associationsallows boards to authorize owners to cast votes or the election o directors and othermatters (e.g., proposed declaration amendments, removal o a director, overridinga special assessment, etc.) by email, ax or other electronic means. Again, electronicvoting is optional, and associations may continue to conduct unit owner votes as inthe past.We strongly recommend that any association contemplating electronic deliveryo notices or electronic voting adopt rules establishing clear procedures or thoseprocesses.

No Exercise o Right o First Reusal Based on FHA Financing

Eective January 1, 2010, ICPA Section 22.2 provides that no condominiumassociation may exercise any right o reusal or option to purchase a unit becausethe purchaser’s nancing is an FHAbacked mortgage.

Condominiums Victimized by Mortgage Fraud

Public Act 0960174 added ICPA Section 14.5 to help municipalities address theproblem o mortgage raud in condominiums. Section 14.5 ocuses on condominiumproperties that have become distressed and are nuisances because there is no