Several changes in 2023 Illinois legislative have impacted the management of condominium, homeowner (HOA), and townhome community associations. Below is an amended summary our law firm has compiled with implications of these legal updates.

If you have questions or concerns regarding these legislatives updates and their impact on your association, please do not hesitate to contact our law firm. Please call 855-537-0550 or visit our website at www.ksnlaw.com.

 

HB4158 – Record of reserve study

  • Enacted, effective immediately.
  • Amends Common Interest Community Association Act (CICAA) & Illinois Condominium Property Act (ILCPA).
  • Requires the Board to maintain a record of any reserve study and extends the repeal date of the Ombudsperson Act to January 1, 2024.

 

HB5167 – Insurance disclosure

  • Enacted, effective July 1, 2023.
  • Amends State Finance Act, Community Association Manager Licensing and Disciplinary Act, etc.
  • Removes language that provides that a community association manager/firm must provide a current certificate of fidelity insurance and a current certificate of general liability and errors and omissions to all associations no later than 10 days following the renewal date of the insurance. Provides instead that the manager shall provide a current certificate of fidelity insurance and a current certificate of general liability and errors and omissions.

 

HB5246 – Document request, deadlines, and fees

  • Enacted, effective January 1, 2023.
  • Amends Section 22.1 of ILCPA.
  • Provides that the principal officer of the unit owner’s association shall furnish specified information relevant to the Condominium when requested to do so in writing and within 10 business days of the request of the prospective buyer. The bill would also limit the fee charged by the Association covering the direct out-of-pocket cost of providing and copying the information to $375.00. It would also allow an association to charge an additional $100 for rush service completed within 72 hours.

 

SB3069 – Community association property tax appeals

  • Enacted, effective immediately.
  • Amends Property Tax Code.
  • Provides that an Association may, on behalf of all or several of the owners, file an appeal to the property tax appeal board or intervene in an appeal filed by a taxing body. Defines Association as a common interest community association, a unit owners association or a master association.

 

HB4322 – Buy/sell disclosures

  • Enacted, effective immediately.
  • Amends Real Property Disclosure Act.
  • Provides that if a seller is involved in specific types of transfers, the seller is exempt from the Act regardless of whether a disclosure report is delivered. The seller shall deliver to a prospective buyer the written disclosure report before the signing of a contract. The bill provides that, if prior to closing, a seller becomes aware of an error/inaccuracy/omission in prior disclosure reports or supplements, that the seller must supplement the prior disclosure report. Additionally, the bill provides that if a seller discloses a material defect in the disclosure report, a buyer within five business days after receipt of the report may terminate the contract. The bill also provides that if a seller discloses a material defect in a supplement to the disclosure, the buyer shall not have the right to terminate unless: (1) the material defect results from an error/inaccuracy/omission of which the seller had actual knowledge at the time of the prior disclosure, (2) the material defect is not repairable prior to closing, or (3) the material defect is repairable prior to closing but within five business days after delivery of the supplemental disclosure, the seller declines or fails to agree in writing to repair the material defect. Allows for the disclosure report to be delivered by e-mail. Provides that newly constructed residential real property that has never been occupied does not include the rehabilitation of existing residential real property. Provides that a seller who has indicated “no” to occupying the property within the last 12 months on a residential real property form shall identify capacity or explain the relationship to the property.

 

HB 5246 – Document request, deadlines, and fees

  • Effective January 1, 2023.
  • Amends the Illinois Condominium Property Act.
  • Starting January 1, 2023, House Bill 5246 will reduce the timeframe for condominium associations in Illinois to provide certain disclosures under Section 22.1 of the Illinois Condominium Property Act (unit resales) from 30 to 10 business days. The bill also caps the fees  for the production of documents under Section 22.1 at $375(with annual adjustments based on the “Consumer price index-u”) and allows for an additional $100 charge for rush service completed within 72 hours.

 

425 ILCS 60 – Smoke detectors and batteries

  • Effective January 1, 2023.
  • The Smoke Detector Act applies to every dwelling unit, which includes condominium units. For dwelling units in existence on July 1, 1988, except as provided below, the smoke detectors required in dwelling units may be either: battery powered, provided the battery is a self-contained, non-removable, long-term battery, or wired into the structure’s AC power line, and need not be interconnected. The battery requirements apply to battery-powered smoke detectors that 1) are in existence and exceed ten years from the date of their being manufactured, 2) fail to respond to operability tests or otherwise malfunction, or 3) are newly installed.
  • For dwelling units newly constructed, reconstructed, or substantially remolded after December 31, 1987, the smoke alarms shall be permanently wired into the building’s electrical system, and if more than one smoke alarm is required, the smoke alarms shall be wired so that the initiation of one smoke alarm will initiate all the smoke alarms in the dwelling unit. For any dwelling units newly constructed, reconstructed, or substantially remodeled after January 1, 2011, smoke alarms permanently wired into the building’s electrical system must also maintain an alternative backup power source, such as batteries or an emergency generator.
  • Note, that the requirements do not apply to fire alarms, smoke detectors, or smoke alarms that are electronically connected as part of a centrally monitored or supervised alarm system. Nor do they apply to smoke detectors, smoke alarms that use a low-power radio frequency signal, or Wi-Fi to send and receive notifications from the internet.

 

35 ILCS 200 – Property tax Code, community association property tax appeals

  • Effective January 1, 2023.
  • Amends the Illinois Property Tax Code which affects both Condominium Associations and Common Interest Communities.
  • Pursuant to Section 16-160 of the Illinois Property Tax Code, an Association can now file an appeal to the Property Tax Appeal Board on behalf of the entire Association or several owners. An Association can file an appeal on any claim that was filed after the 1999 assessment year.

 

Legal Resource

If you are board member, property manager, or community association leader with questions about these recent legislative updates, do not hesitate to contact our law firm.

Please call 855-537-0500 or visit 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, collectionslandlord/tenant issues, and property tax appeals. We have four office locations, serving hundreds of clients and thousands of communities throughout Illinois, Indiana, and Wisconsin. Our attorneys are also licensed in Arizona, Florida, and Missouri.

 

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