GOVERNOR RAUNER VETOES BILL WHICH WOULD HAVE LOWERED THE THRESHOLD REQUIRED FOR COMMON INTEREST COMMUNITY ASSOCIATIONS TO INCORPORATE AS MUNICIPALITIES.
SB 1344 (Sen. Haine), would have amended Section 1-20 (d) of the Common Interest Community Association Act by providing that no action to incorporate a common interest community as a municipality shall commence until an instrument agreeing to incorporation has been signed by 51% of the members. Currently, the statute as written requires “two-thirds” of the members to agree to the municipal incorporation.
On April 16, 2015 the bill passed the Senate with a vote of 47 in favor and 0 against. On May 21, 2015 the bill passed the House with a vote of 115 in favor, 0 against and 1 voting present.
However, Governor Rauner vetoed the bill, providing the following message:
“Today I veto Senate Bill 1344 from the 99th General Assembly, which lowers the threshold required for common interest community associations to incorporate as municipalities.
Under current law, a common interest community association may initiate the process to incorporate as a municipality upon approval by two-thirds of its members. Senate Bill 1344 would lower that threshold from two-thirds to “51%” of the members.
The decision to incorporate as a municipality, which implicates a range of tax and local governance policies, should not be taken lightly. Illinois has almost 7,000 units of local government, more than any state in country. As such, we should maintain the higher threshold for initiating the incorporation process.”
The Senate voted to override Rauner’s veto with a 37-14 vote on August 19. The House is expected to take up the veto override this week. At this time there is no actual change to the law, however we will continue to monitor the possibility of the Illinois General Assembly voting to override Rauner’s veto.
You can view ill status of SB1344 99th General Assembly here.
If we can assist your association in a legal matter, do not hesitate to contact KSN at 855-537-0550 or visit our website at www.ksnlaw.com.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
This article is made available by the lawyer or law firm publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By reading this article you understand that there is no attorney client relationship between you and the article author. This article should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. © 2023 Kovitz Shifrin Nesbit, A Professional Corporation.