Bill Amendment: IL HB2563 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: CONDO-RESERVE STUDY

Status: 2026-04-17 - Rule 19(a) / Re-referred to Rules Committee [HB2563 Detail]

Download: Illinois-2025-HB2563-House_Amendment_001.html

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Rep. Terra Costa Howard

Filed: 3/12/2025

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AMENDMENT TO HOUSE BILL 2563
AMENDMENT NO. ______. Amend House Bill 2563 as follows:
on page 6, line 6, after "22.1" by inserting "and by adding
Section 18.13"; and
on page 27, immediately below line 3 by inserting the
following:
"(765 ILCS 605/18.13 new)
Sec. 18.13. Reserve Study.
(a) As used in this Section:
"Major shared components or significant infrastructure"
means structural, mechanical, electrical, and plumbing
components of the common elements and any other components
that are the responsibility of the association to maintain,
restore, repair, and replace, or infrastructure, including,
but not limited to, roads, street lighting, hardscape,

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landscape, ponds and lakes, water features, pools, and
accessory buildings, if applicable, with a restoration or
replacement cost exceeding $10,000, which are capital expenses
as identified in the federal tax code and generally accepted
accounting principles.
"Reserve study" means an analysis of the reserves required
for future major maintenance, repairs, and replacements of the
common elements that:
(1) identifies each structural, mechanical,
electrical, and plumbing component of the common elements
and any other components that are the responsibility of
the association to maintain, repair, and replace;
(2) states the normal useful life and the estimated
remaining useful life of each identified component;
(3) states the estimated cost of maintenance, repair,
or replacement of each identified component; and
(4) states the estimated annual reserve amount
necessary to accomplish any identified future maintenance,
repair, or replacement.
(b) Any association with major shared components or
significant infrastructure shall cause a reserve study to be
conducted and updated in accordance with this Section.
(c) Any association with major shared components or
significant infrastructure that has had a reserve study
conducted on or after January 1, 2024, shall have an updated
reserve study conducted within 5 years after the date the

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reserve study was conducted, and at least every 5 years
thereafter, for purposes of assessing the condition of and
planning for maintenance, repair, and replacement of the
common elements.
(d) Any association with major shared components or
significant infrastructure that has not had a reserve study
conducted on or after January 1, 2024, shall require that a
reserve study be conducted on or before January 1, 2028, and
shall update the study every 5 years for purposes of assessing
the condition of and planning for maintenance, repair, and
replacement of the common elements.
(e) The reserve study and any update to the reserve study
shall be conducted by a qualified person, association,
organization, or business entity that is knowledgeable about
the major shared components or significant infrastructure that
will be the subject of the reserve study. A qualified person,
association, organization, or business entity is one that has
experience and knowledge about the normal useful life,
function, performance, condition, maintenance, repair, and
replacement of any one or more of the major shared components
or significant infrastructure that will be the subject of the
reserve study, as well as the related expenses. The reserve
study is not required to be conducted by a single person,
association, organization, or business entity. An association
may internally prepare a reserve study provided that such a
reserve study compiles information from a qualified person,

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association, organization, or business entity.
(f) In the event of resale of any unit in the association,
a copy of the most recent reserve study, if any, shall be made
available to any prospective purchaser, upon request.
(g) Any association with 15 or fewer units is exempt from
the requirements of this Section; however, the board must
still comply with budgeting and reserve requirements as
provided elsewhere in the Act or in the community
instruments.".