By Attorney Conor Grealish

Before the year's end, Illinois will likely pass a new law that would amend the Illinois Condominium Property Act and Illinois Common Interest Community Association Act, creating new obligations for those entities. The Illinois House has recently passed HB 220, which would require associations to acquire a reserve study to assess the condition of the common areas and create a plan to maintain and repair those common areas. Associations who have not conducted a reserve study or have not obtained one within the last 5 years will be required to complete one by January 1, 2026, and then every 5 years after. 

The bill currently defines a “reserve study” as an analysis of the reserve money required for future major maintenance and repairs of the common areas. Specifically, it would (a) identify the normal and useful life of the component common elements; (b) state the estimated cost to repair, maintain, and replace those components; and (c) state the estimated amount of reserves the association must maintain to ensure the common elements continue to function. 

The law will help ensure that associations have the necessary means to make significant repairs when they occur. It will also afford unit owners more predictability in their assessment payments since the HOA will have the funds available and plans necessary to maintain the common areas. While the Governor has not yet signed this bill, if he does, it will go into effect on January 1, 2025.

Should you need any assistance in determining your association's compliance with the Condominium Act or Community Association Act or need any further legal assistance in managing your association's operations, please do not hesitate to contact CTM Legal Group at 312.818.6700.