Bill Text: IL SB3527 | 2025-2026 | 104th General Assembly | Enrolled

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Bill Title: Amends the Common Interest Community Association Act and the Condominium Property Act. Requires an association under both Acts to adopt policies and procedures concerning the collection of unpaid assessments. Prohibits an association or a holder or assignee of the association's debt from taking legal action to collect common expenses unless the association has adopted a written policy governing the collection policy for unpaid assessments. Specifies what the policy, at a minimum, must contain.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Enrolled) 2026-06-18 - Sent to the Governor [SB3527 Detail]

Download: Illinois-2025-SB3527-Enrolled.html

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AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Common Interest Community Association Act
is amended by changing Sections 1-35 and 1-45 as follows:
(765 ILCS 160/1-35)
Sec. 1-35. Member powers, duties, and obligations.
(a) The provisions of this Act, the declaration, bylaws,
other community instruments, and rules and regulations that
relate to the use of an individual unit or the common areas
shall be applicable to any person leasing a unit and shall be
deemed to be incorporated in any lease executed or renewed on
or after the effective date of this Act. Unless otherwise
provided in the community instruments, with regard to any
lease entered into subsequent to the effective date of this
Act, the unit owner leasing the unit shall deliver a copy of
the signed lease to the association or if the lease is oral, a
memorandum of the lease, not later than the date of occupancy
or 10 days after the lease is signed, whichever occurs first.
(b) If there are multiple owners of a single unit, only one
of the multiple owners shall be eligible to serve as a member
of the board at any one time, unless the unit owner owns
another unit independently.

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(c) Two-thirds of the membership may remove a board member
as a director at a duly called special meeting.
(d) In the event of any resale of a unit in a common
interest community association by a member or unit owner other
than the developer, the board shall make available for
inspection to the prospective purchaser, upon demand, the
following:
(1) A copy of the declaration, other instruments, and
any rules and regulations.
(2) A statement of any liens, including a statement of
the account of the unit setting forth the amounts of
unpaid assessments and other charges due and owing.
(3) A statement of any capital expenditures
anticipated by the association within the current or
succeeding 2 fiscal years.
(4) A statement of the status and amount of any
reserve or replacement fund and any other fund
specifically designated for association projects.
(5) A copy of the statement of financial condition of
the association for the last fiscal year for which such a
statement is available.
(6) A statement of the status of any pending suits or
judgments in which the association is a party.
(7) A statement setting forth what insurance coverage
is provided for all members or unit owners by the
association for common properties.

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(8) A copy of the collection policy adopted under
subsection (j) of Section 1-45.
The principal officer of the board or such other officer
as is specifically designated shall furnish the above
information within 30 days after receiving a written request
for such information.
A reasonable fee covering the direct out-of-pocket cost of
copying and providing such information may be charged by the
association or the board to the unit seller for providing the
information.
(Source: P.A. 97-605, eff. 8-26-11; 97-1090, eff. 8-24-12;
98-842, eff. 1-1-15.)
(765 ILCS 160/1-45)
Sec. 1-45. Finances.
(a) Each member shall receive through a prescribed
delivery method, at least 30 days but not more than 60 days
prior to the adoption thereof by the board, a copy of the
proposed annual budget together with an indication of which
portions are intended for reserves, capital expenditures or
repairs or payment of real estate taxes.
(b) The board shall provide all members with a reasonably
detailed summary of the receipts, common expenses, and
reserves for the preceding budget year. The board shall (i)
make available for review to all members an itemized
accounting of the common expenses for the preceding year

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actually incurred or paid, together with an indication of
which portions were for reserves, capital expenditures or
repairs or payment of real estate taxes and with a tabulation
of the amounts collected pursuant to the budget or assessment,
and showing the net excess or deficit of income over
expenditures plus reserves or (ii) provide a consolidated
annual independent audit report of the financial status of all
fund accounts within the association.
(c) If an adopted budget or any separate assessment
adopted by the board would result in the sum of all regular and
separate assessments payable in the current fiscal year
exceeding 115% of the sum of all regular and separate
assessments payable during the preceding fiscal year, the
common interest community association, upon written petition
by members with 20% of the votes of the association delivered
to the board within 14 days of the board action, shall call a
meeting of the members within 30 days of the date of delivery
of the petition to consider the budget or separate assessment;
unless a majority of the total votes of the members are cast at
the meeting to reject the budget or separate assessment, it
shall be deemed ratified.
(d) If total common expenses exceed the total amount of
the approved and adopted budget, the common interest community
association shall disclose this variance to all its members
and specifically identify the subsequent assessments needed to
offset this variance in future budgets.

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(e) Separate assessments for expenditures relating to
emergencies or mandated by law may be adopted by the board
without being subject to member approval or the provisions of
subsection (c) or (f) of this Section. As used herein,
"emergency" means a danger to or a compromise of the
structural integrity of the common areas or any of the common
facilities of the common interest community. "Emergency" also
includes a danger to the life, health or safety of the
membership.
(f) Assessments for additions and alterations to the
common areas or to association-owned property not included in
the adopted annual budget, shall be separately assessed and
are subject to approval of a simple majority of the total
members at a meeting called for that purpose.
(g) The board may adopt separate assessments payable over
more than one fiscal year. With respect to multi-year
assessments not governed by subsections (e) and (f) of this
Section, the entire amount of the multi-year assessment shall
be deemed considered and authorized in the first fiscal year
in which the assessment is approved.
(h) The board of a common interest community association
shall have the authority to establish and maintain a system of
master metering of public utility services to collect payments
in conjunction therewith, subject to the requirements of the
Tenant Utility Payment Disclosure Act.
(i) An association subject to this Act that consists of

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100 or more units shall use generally accepted accounting
principles in fulfilling any accounting obligations under this
Act.
(j) To promote responsible governance, the board must
adopt policies and procedures concerning the collection of
unpaid assessments.
(1) Notwithstanding any provision in the community
instruments to the contrary, the association or a holder
or assignee of the association's debt, whether the holder
or assignee of the association's debt is an entity or a
natural person, shall not take legal action to collect
common expenses unless the association or a holder or
assignee of the association's debt has adopted, and
follows, a written policy governing the collection of
unpaid assessments. The policy must, at a minimum,
specify:
(A) the date on which common expenses must be paid
to the entity and when an assessment is considered
delinquent;
(B) any late fees and interest the entity is
entitled to impose on a delinquent unit owner's
account;
(C) any returned-check charges the entity is
entitled to impose;
(D) the circumstances, if any, under which a unit
owner is entitled to enter into a payment plan with the

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entity and the minimum terms of the payment plan;
(E) the amount or duration of time before the
entity refers a delinquent account to an attorney for
legal action;
(F) the method by which payments may be applied on
the delinquent account of a unit owner; and
(G) the legal remedies available to the entity to
collect on a unit owner's delinquent account pursuant
to the governing documents of the entity and Illinois
law.
(2) As used in this subsection, "entity" means an
association or a holder or assignee of the association's
debt, whether the holder or assignee of the association's
debt is an entity or a natural person.
(Source: P.A. 100-292, eff. 1-1-18.)
Section 10. The Condominium Property Act is amended by
changing Sections 18.4 and 22.1 as follows:
(765 ILCS 605/18.4) (from Ch. 30, par. 318.4)
Sec. 18.4. Powers and duties of board of managers. The
board of managers shall exercise for the association all
powers, duties and authority vested in the association by law
or the condominium instruments except for such powers, duties
and authority reserved by law to the members of the
association. The powers and duties of the board of managers

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shall include, but shall not be limited to, the following:
(a) To provide for the operation, care, upkeep,
maintenance, replacement and improvement of the common
elements. Nothing in this subsection (a) shall be deemed
to invalidate any provision in a condominium instrument
placing limits on expenditures for the common elements,
provided, that such limits shall not be applicable to
expenditures for repair, replacement, or restoration of
existing portions of the common elements. The term
"repair, replacement or restoration" means expenditures to
deteriorated or damaged portions of the property related
to the existing decorating, facilities, or structural or
mechanical components, interior or exterior surfaces, or
energy systems and equipment with the functional
equivalent of the original portions of such areas.
Replacement of the common elements may result in an
improvement over the original quality of such elements or
facilities; provided that, unless the improvement is
mandated by law or is an emergency as defined in item (iv)
of subparagraph (8) of paragraph (a) of Section 18, if the
improvement results in a proposed expenditure exceeding 5%
of the annual budget, the board of managers, upon written
petition by unit owners with 20% of the votes of the
association delivered to the board within 21 days of the
board action to approve the expenditure, shall call a
meeting of the unit owners within 30 days of the date of

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delivery of the petition to consider the expenditure.
Unless a majority of the total votes of the unit owners are
cast at the meeting to reject the expenditure, it is
ratified.
(b) To prepare, adopt and distribute the annual budget
for the property.
(c) To levy and expend assessments.
(d) To collect assessments from unit owners.
(e) To provide for the employment and dismissal of the
personnel necessary or advisable for the maintenance and
operation of the common elements.
(f) To obtain adequate and appropriate kinds of
insurance.
(g) To own, convey, encumber, lease, and otherwise
deal with units conveyed to or purchased by it.
(h) To adopt and amend rules and regulations covering
the details of the operation and use of the property,
after a meeting of the unit owners called for the specific
purpose of discussing the proposed rules and regulations.
Notice of the meeting shall contain the full text of the
proposed rules and regulations, and the meeting shall
conform to the requirements of Section 18(b) of this Act,
except that no quorum is required at the meeting of the
unit owners unless the declaration, bylaws or other
condominium instrument expressly provides to the contrary.
However, no rule or regulation may impair any rights

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guaranteed by the First Amendment to the Constitution of
the United States or Section 4 of Article I of the Illinois
Constitution including, but not limited to, the free
exercise of religion, nor may any rules or regulations
conflict with the provisions of this Act or the
condominium instruments. No rule or regulation shall
prohibit any reasonable accommodation for religious
practices, including the attachment of religiously
mandated objects to the front-door area of a condominium
unit.
(i) To keep detailed, accurate records of the receipts
and expenditures affecting the use and operation of the
property.
(j) To have access to each unit from time to time as
may be necessary for the maintenance, repair or
replacement of any common elements or for making emergency
repairs necessary to prevent damage to the common elements
or to other units.
(k) To pay real property taxes, special assessments,
and any other special taxes or charges of the State of
Illinois or of any political subdivision thereof, or other
lawful taxing or assessing body, which are authorized by
law to be assessed and levied upon the real property of the
condominium.
(l) To impose charges for late payment of a unit
owner's proportionate share of the common expenses, or any

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other expenses lawfully agreed upon, and after notice and
an opportunity to be heard, to levy reasonable fines for
violation of the declaration, by-laws, and rules and
regulations of the association.
(m) By a majority vote of the entire board of
managers, to assign the right of the association to future
income from common expenses or other sources, and to
mortgage or pledge substantially all of the remaining
assets of the association.
(n) To record the dedication of a portion of the
common elements to a public body for use as, or in
connection with, a street or utility where authorized by
the unit owners under the provisions of Section 14.2.
(o) To record the granting of an easement for the
laying of cable television or high speed Internet cable
where authorized by the unit owners under the provisions
of Section 14.3; to obtain, if available and determined by
the board to be in the best interests of the association,
cable television or bulk high speed Internet service for
all of the units of the condominium on a bulk identical
service and equal cost per unit basis; and to assess and
recover the expense as a common expense and, if so
determined by the board, to assess each and every unit on
the same equal cost per unit basis.
(p) To seek relief on behalf of all unit owners when
authorized pursuant to subsection (c) of Section 10 from

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or in connection with the assessment or levying of real
property taxes, special assessments, and any other special
taxes or charges of the State of Illinois or of any
political subdivision thereof or of any lawful taxing or
assessing body.
(q) To reasonably accommodate the needs of a unit
owner who is a person with a disability as required by the
federal Civil Rights Act of 1968, the Human Rights Act and
any applicable local ordinances in the exercise of its
powers with respect to the use of common elements or
approval of modifications in an individual unit.
(r) To accept service of a notice of claim for
purposes of the Mechanics Lien Act on behalf of each
respective member of the Unit Owners' Association with
respect to improvements performed pursuant to any contract
entered into by the Board of Managers or any contract
entered into prior to the recording of the condominium
declaration pursuant to this Act, for a property
containing more than 8 units, and to distribute the notice
to the unit owners within 7 days of the acceptance of the
service by the Board of Managers. The service shall be
effective as if each individual unit owner had been served
individually with notice.
(s) To adopt and amend rules and regulations (l)
authorizing electronic delivery of notices and other
communications required or contemplated by this Act to

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each unit owner who provides the association with written
authorization for electronic delivery and an electronic
address to which such communications are to be
electronically transmitted; and (2) authorizing each unit
owner to designate an electronic address or a U.S. Postal
Service address, or both, as the unit owner's address on
any list of members or unit owners which an association is
required to provide upon request pursuant to any provision
of this Act or any condominium instrument.
(t) To promote responsible governance, the board must
adopt policies and procedures concerning the collection of
unpaid assessments.
(1) Notwithstanding any provision of the
condominium instruments and adopted rules and
regulations to the contrary, the association or a
holder or assignee of the association's debt, whether
the holder or assignee of the association's debt is an
entity or a natural person, shall not take legal
action to collect common expenses unless the
association or a holder or assignee of the
association's debt has adopted, and follows, a written
policy governing the collection of unpaid assessments.
The policy must, at a minimum, specify:
(A) the date on which common expenses must be
paid to the entity and when an assessment is
considered delinquent;

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(B) any late fees and interest the entity is
entitled to impose on a delinquent unit owner's
account;
(C) any returned-check charges the entity is
entitled to impose;
(D) the circumstances, if any, under which a
unit owner is entitled to enter into a payment
plan with the entity and the minimum terms of the
payment plan;
(E) the amount or duration of time before the
entity refers a delinquent account to an attorney
for legal action;
(F) the method by which payments may be
applied on the delinquent account of a unit owner;
and
(G) the legal remedies available to the entity
to collect on a unit owner's delinquent account
pursuant to the governing documents of the entity
and Illinois law.
(2) As used in this subsection, "entity" means an
association or a holder or assignee of the
association's debt, whether the holder or assignee of
the association's debt is an entity or a natural
person.
In the performance of their duties, the officers and
members of the board, whether appointed by the developer or

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elected by the unit owners, shall exercise the care required
of a fiduciary of the unit owners.
The collection of assessments from unit owners by an
association, board of managers or their duly authorized agents
shall not be considered acts constituting a collection agency
for purposes of the Collection Agency Act.
The provisions of this Section are applicable to all
condominium instruments recorded under this Act. Any portion
of a condominium instrument which contains provisions contrary
to these provisions shall be void as against public policy and
ineffective. Any such instrument that fails to contain the
provisions required by this Section shall be deemed to
incorporate such provisions by operation of law.
(Source: P.A. 99-143, eff. 7-27-15; 99-849, eff. 1-1-17;
100-292, eff. 1-1-18.)
(765 ILCS 605/22.1) (from Ch. 30, par. 322.1)
Sec. 22.1. (a) In the event of any resale of a condominium
unit by a unit owner other than the developer such owner shall
obtain from the Board of Managers and shall make available for
inspection to the prospective purchaser, upon demand, the
following:
(1) A copy of the Declaration, by-laws, other
condominium instruments, and any rules and regulations.
(2) A statement of any liens, including a statement of
the account of the unit setting forth the amounts of

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unpaid assessments and other charges due and owing as
authorized and limited by the provisions of Section 9 of
this Act or the condominium instruments.
(3) A statement of any capital expenditures
anticipated by the unit owner's association within the
current or succeeding 2 fiscal years.
(4) A statement of the status and amount of any
reserve for replacement fund and any portion of such fund
earmarked for any specified project by the Board of
Managers.
(5) A copy of the statement of financial condition of
the unit owner's association for the last fiscal year for
which such statement is available.
(6) A statement of the status of any pending suits or
judgments in which the unit owner's association is a
party.
(7) A statement setting forth what insurance coverage
is provided for all unit owners by the unit owner's
association.
(8) A statement that any improvements or alterations
made to the unit, or the limited common elements assigned
thereto, by the prior unit owner are in good faith
believed to be in compliance with the condominium
instruments.
(9) The identity and mailing address of the principal
officer of the unit owner's association or of the other

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officer or agent as is specifically designated to receive
notices.
(10) A copy of the collection policy adopted under
subsection (t) of Section 18.4.
(b) The principal officer of the unit owner's association
or such other officer as is specifically designated shall
furnish the above information when requested to do so in
writing and within 10 business days of the request.
(c) Within 15 days of the recording of a mortgage or trust
deed against a unit ownership given by the owner of that unit
to secure a debt, the owner shall inform the Board of Managers
of the unit owner's association of the identity of the lender
together with a mailing address at which the lender can
receive notices from the association. If a unit owner fails or
refuses to inform the Board as required under subsection (c)
then that unit owner shall be liable to the association for all
costs, expenses, and reasonable attorney's fees and such other
damages, if any, incurred by the association as a result of
such failure or refusal.
A reasonable fee, not to exceed $375, covering the direct
out-of-pocket cost of providing such information and copying
may be charged by the association or its Board of Managers to
the unit seller for providing such information. Beginning one
year after the effective date of this amendatory Act of the
102nd General Assembly, the $375 fee shall be increased or
decreased, as applicable, by a percentage equal to the

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percentage change in the consumer price index-u during the
preceding 12-month calendar year. "Consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84 = 100. An association may charge an additional $100
for rush service completed within 72 hours.
(Source: P.A. 102-976, eff. 1-1-23.)