Another significant provision in SB3715 addresses the removal of board members who face criminal charges, specifically those related to fraudulent activities connected to elections and financial misconduct. If a board member is charged with forgery, embezzlement, or destruction of official records, they are required to be removed from their position. However, if those charges are resolved without a finding of guilt, the member may be reinstated for the remainder of their term. This stipulation is intended to uphold ethical conduct in board operations and foster trust among unit owners.
Summary
SB3715, introduced in the Illinois General Assembly, aims to amend the Condominium Property Act with several key changes pertaining to the governance of condominium associations. Notably, the bill prohibits directors from voting by proxy or by secret ballot during board meetings, except for officer elections. This measure seeks to enhance transparency and ensure that decisions that impact the expenditure of association funds and architectural decisions affecting homeowners are made openly and with full participation from board members. As a consequence, this could significantly change the decision-making process within condominium associations, promoting accountability among board members.
Contention
The bill also introduces requirements for enhanced disclosure by board members, particularly those appointed by developers. They must disclose their relationship to the developer annually and report any potential conflicts of interest 14 days prior to voting on relevant issues. Failure to comply with these provisions may result in fines of up to $2,500 if documents are not provided to members of the association as required. While supporters argue that these measures protect the interests of unit owners and increase transparency, detractors may contend that such regulations could create barriers to effective governance or overly burden the board with compliance responsibilities.
Common interest communities rights and duties modified, unit owner rights modified, termination threshold modified, meet and confer process established, notice of meetings modified, and governing bodies prohibited from requiring or incentivizing creation of homeowners associations.