On July 15, 2016 Governor Rauner signed two important pieces of legislation for the community association industry.
CLOSED PORTIONS OF MEETINGS/EXECUTIVE SESSIONS P.A. 099-0567
Section 18(a)(9) of the Illinois Condominium Property Act and Sec. 1-40 Common Interest Community Association Act. Meetings.
The new law changes both the Condominium Property Act and the Common Interest Community Association Act to clarify what items may be discussed by a board of directors during the closed portion of a meeting or executive session meetings. Importantly, the new law the specifies that board members can meet in a closed portion of a noticed meeting, or separate from a noticed meeting to discuss certain enumerated executive matters. The act details that Boards may discuss engagement, interviewing and dismissal of employees, independent contractors, agent or providers of goods and services. Finally, the law makes it clear the Board members can meet with legal counsel outside to the presence of an open meeting.
SUCCESSOR DEVELOPERS – P.A. 099-0569
Sec. 1-15 Common Interest Community Association Act and Sections 4.1 and 18.5 (j) Illinois Condominium Property Act
The new law changes both the Common Interest Community Association Act and the Condominium Property Act to require successor developers to obtain written assignment of developer (declarant) rights and to require the successor to record the assignment prior to it being effective. This alleviates the situation where a bank or subsequent purchasers of undeveloped portions of an association contends “they are the new declarant” without having anything in writing.