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Illinois Procedure for Removal of Restrictive Covenants

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Public Act 102-0110
HB0058 EnrolledLRB102 02671 AWJ 12674 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Counti‚Äčes Code is amended by adding Section
3-5048 as follows:
(55 ILCS 5/3-5048 new)
Sec. 3-5048. Unlawful restrictive covenant modifications.
(a) As used in this Section:
"Declaration" has the meaning given to that term in
Section 1-5 of the Common Interest Community Association Act
or Section 2 of the Condominium Property Act, as applicable.
"Unlawful restrictive covenant" means any recorded
covenant or restriction that is void under Section 3-105 of
the Illinois Human Rights Act which purports to forbid or
restrict the conveyance, encumbrance, occupancy, or lease
thereof on the basis of race, color, religion, or national
origin.
"Recorder" means the recorder of the county where the
property subject to the unlawful restrictive covenant is
located.
(b) A person or entity may execute and file a restrictive
covenant modification to an unlawful restrictive covenant in
accordance with this Section if the person or entity:
(1) holds an ownership interest in property that is
subject to the unlawful restrictive covenant; or
(2) is a common interest community association, a
condominium association, a unit owners' association, a
residential housing cooperative, or a master association
of a parcel of property subject to an unlawful restrictive
covenant under the following conditions:
(A) When a parcel of property subject to an
unlawful restrictive covenant is in a common interest
community association, condominium association, unit
owners' association, residential housing cooperative,
or master association, only the board, acting through
a majority vote, may execute and file a restrictive
covenant modification under this Section. Removal of
an unlawful restrictive covenant will not require
approval of the owners or members of such association
or cooperative, notwithstanding any provision of the
governing documents to the contrary. As used in
subparagraphs (A) through (D), "board" means the board
of managers or directors or the managing trustees of
any such association or cooperative.
(B) If the board receives a written request by an
owner or member of the association or cooperative that
the board exercise its authority to execute and file a
restrictive covenant modification under this Section,
the board shall, within 90 days, investigate any claim
of an unlawful restrictive covenant and, if determined
to be an unlawful restrictive covenant, shall execute
and file a restrictive covenant modification as
provided under this Section.
(C) If a board fails or refuses to execute and file
a restrictive covenant modification after it receives
a written request by an owner or member as provided in
subparagraph (B), the owner or member who made the
written request may bring an action to compel the
board to file a restrictive covenant modification. Any
owner or member who prevails in such an action to
compel shall be entitled to recover reasonable
attorneys' fees and costs from the association or
cooperative.
(D) The board shall give written notice to all
owners or members of the association of the
restrictive covenant modification along with a copy of
such restrictive covenant modification within 21 days
after receiving a recorded copy of the documents.
(c) A restrictive covenant modification shall include:
(1) a complete copy of the original instrument
containing the unlawful restrictive covenant with the
language of the unlawful restrictive covenant stricken;
and
(2) a petition to modify an unlawful restrictive
covenant, as provided in subsection (d).
(d) A petition to modify an unlawful restrictive covenant
shall:
(1) be signed by the record owner of the property or,
in the case of an entity under paragraph (2) of subsection
(b), be accompanied by a certification that a majority of
the governing body of the entity has agreed to the
restrictive covenant modification;
(2) reference the property index number or unique
parcel identification code of the property for which the
original instrument containing the unlawful restrictive
covenant is recorded; and
(3) include any other information that the recorder or
State's Attorney considers necessary in carrying out the
requirements of this Section.
(e) On receipt of a restrictive covenant modification, the
recorder shall submit the restrictive covenant modification
together with a copy of the original instrument referenced in
the restrictive covenant modification to the State's Attorney.
(f) Within 30 days of receipt from the recorder, the
State's Attorney shall:
(1) review the restrictive covenant modification and
the copy of the original instrument to determine: (i)
whether the original instrument contains an unlawful
restrictive covenant; and (ii) whether the restrictive
covenant modification correctly strikes through only the
language of the unlawful restrictive covenant; and
(2) return the restrictive covenant modification and
copy of the original instrument to the recorder together
with the State's Attorney's written determination.
(g) The recorder may not record a restrictive covenant
modification filed under subsection (b) unless the State's
Attorney determines that the modification is appropriate in
accordance with subsection (f). If the State's Attorney's
written determination finds that the instrument contains an
unlawful restrictive covenant, the recorder shall record the
restrictive covenant modification with the language stricken
as directed by the State's Attorney.
(h) A recorded restrictive covenant modification shall be
indexed in the same manner as the original instrument.
(i) Subject to all lawful covenants, conditions, and
restrictions that were recorded after the recording of the
original instrument, the restrictions contained in a duly
recorded restrictive covenant modification are the only
restrictions based on the original instrument that apply to
the property.
(j) The effective date of the terms and conditions
contained in a duly recorded restrictive covenant modification
shall be the same as the effective date of the original
instrument.
(k) If a person or entity causes to be filed or recorded a
restrictive covenant modification that contains modifications
not authorized under this Section:
(1) the recorder may not incur any liability for
recording the restrictive covenant modification;
(2) the county may not incur any liability as a result
of a determination rendered by the State's Attorney under
subsection (f); and
(3) any costs, fees, or liability that results from
the unauthorized filing or recording shall be the sole
responsibility of the person or entity that executed the
restrictive covenant modification.
(l) The recorder may impose a fee for filing a restrictive
covenant modification to an unlawful restrictive covenant
pursuant to this Section in an amount not to exceed $10.

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