Several changes in 2024 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.

 

Federal legislative updates impacting Illinois community associations

 

Federal Corporate Transparency Act: What is it and how does it impact your community association?

  • The Federal Corporate Transparency Act (CTA) is a U.S. law that was passed in 2021. It requires certain businesses to disclose ownership information to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).
  • The Act’s broad language classifies condominium, homeowner (HOA), townhome association and co-ops as a “Reporting Company” subject to this new federal requirement. Specifically, board members would also be defined as having “substantial influence over important decisions” as “beneficial owners” within the association.
  • Accordingly, board members would need to provide the required personal information and documents to the U.S. Department of the Treasury. Additionally, the Act specifies that the U.S. Department of the Treasury must be updated if there are changes to board of directors from the community association’s initial filing.
  • The Act’s is effective on January 1, 2024, for existing, eligible community associations. There are significant fines and penalties for non-compliance with the Act.
  • Board members cannot ignore the impact of this new federal law and will need to demonstrate a sense of urgency to comply including: confirming the community association is subject to the Corporate Transparency Act, providing proper personal identification to the U.S. Department of the Treasury, and filing the correct documentation with the U.S. Department of the Treasury.
  • KSN blog “Federal Corporate Transparency Act: Impact on Community Associations” https://www.ksnlaw.com/blog/federal-corporate-transparency-act-impact-community-associations/

 

Updated federal condominium mortgage requirements

  • The Federal National Mortgage Association (FNMA, otherwise known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, commonly known as Freddie Mac) both created new sets of requirements impacting condominium associations after the partial collapse of the 12-story beachfront condominium building in Surfside, Florida.
  • These new guidelines address several factors including: significant deferred maintenance and unsafe conditions, special assessments, reserve requirements, project eligibility waivers, documentation (ex. engineering reports, inspection reports, condo questionnaires, HOA meeting minutes).
  • Fannie Mae maintains a list of “unavailable” properties that have issues involving environmental hazards, title issues, structural problems, or other issues that would affect the safety, soundness, or marketability of the property. Properties on the unavailable list are ineligible for Fannie Mae financing and lending.
  • KSN blog “Is Your Condo or HOA on the Fannie Mae Unavailable List?” https://www.ksnlaw.com/blog/condo-hoa-unavailable-list/
  • KSN blog “Updated Condo Mortgage Requirements: What Board Members and Property Managers Need to Know” https://www.ksnlaw.com/blog/updated-condo-mortgage-requirements-board-members-property-managers/

 

Illinois legislative updates impacting community associations

 

Document request, deadlines, and fee caps – HB5246

 

Electric vehicle charging and Illinois community associations – SB0384

  • Illinois Senate Bill 0384, approved on December 8, 2023, revises the Electric Vehicle Charging Act. This amendment is effective starting January 1, 2024.
  • The key changes include the application of the Act to all newly built single-family homes and multifamily residential buildings with parking spaces, constructed after the Act’s effective date, concerning EV-capable parking space requisites and residential requirements.
  • The Act does not apply to existing Illinois community associations.
  • Furthermore, the Act’s provisions regarding electric vehicle charging system policies now extend to unit owners, tenants, landlords, and associations in both newly constructed and existing single-family homes, as well as multifamily residential buildings with parking.
  • For more information, please visit: https://ilga.gov/legislation/fulltext.asp?DocName=10300SB0384sam001&GA=103&LegID=144131&SessionId=112&SpecSess=0&DocTypeId=SB&DocNum=0384&GAID=17&Session=
  • KSN blog “New Illinois Law Sparks a Change to Condo Owners and Tenants: Impact of Electric Vehicle Charging on Community Associations” https://www.ksnlaw.com/blog/illinois-law-condo-electric-vehicle-charging/

 

Solar energy systems and Illinois community associations, changes to the Homeowners’ Energy Policy Statement Act –  HB2174

  • Illinois HB2174 impacts community associations by setting specific requirements for their energy policy statements, particularly relating to solar energy systems.
  • The legislation ensures that associations cannot condition approval of solar installations on adjacent property owners’ approval, restrict inquiries into a homeowner’s energy usage, or impose conditions that could impair solar system operation or affect warranty components.
  • It also outlines conditions associations can impose for the location and maintenance of solar equipment.
  • Moreover, the bill mandates timely processing of solar energy system applications and prohibits discrimination based on system ownership or financing.
  • However, Section 45 of the Act states that it does not apply to any building that is greater than 60 feet in height, or that has a shared roof and is subject to a homeowner’s association, common interest community association, or condominium unit owners’ association.
  • For more information, please visit: https://ilga.gov/legislation/publicacts/fulltext.asp?name=103-0296&GA=103&SessionId=112&DocTypeId=HB&DocNum=2174&GAID=17&SpecSess=&Session=

 

Increases to minimum wage: New law impacting Illinois community association employees

 

Paid leave: New law impacting Illinois community association employees

  • The Illinois Paid Leave for All Workers Act (PLAWA, 820 ILCS 192), which took effect on January 1, 2024, mandates most employers in Illinois to provide a minimum of 40 hours of paid leave to their employees during each 12-month period.
  • This law allows employees to use their paid leave for any reason, without the necessity to provide a reason or documentation. The act applies to both part-time and full-time employees in most Illinois employers.
  • For more information, please visit the Illinois Department of Labor website here: https://labor.illinois.gov/faqs/paidleavefaq.html

 

2024 law impacting Illinois community associations who are landlords – SB1817

 

Senior residents and cooling/heating standards in Illinois community associations – HB2562

  • Illinois HB 2562 was passed in May 2023 and amends the Common Interest Community Association Act, the Condominium Property Act, and the Landlord and Tenant Act.
  • The law impacts senior housing in common interest, condominium, and residential rental properties where residents are 55 years or older.
  • This law sets standards for cooling and heating systems in these buildings. It requires maintaining specific temperature ranges during different seasons and ensuring access to an indoor common space with a cooling system when there’s no building-wide cooling in individual units.
  • “Temperature of all common areas [should be kept] between 67 and 73 degrees and, if a unit owner or tenant does not have control of temperature settings in the unit owner’s or tenant’s living area, to keep the temperature of all living areas between 67 and 73 degrees.”
  • The law applies “only to property or residential premises where: (1) 75% of the unit owners or tenants are 65 years of age or older if the property or residential premises has 25 dwelling units or less; or (2) 50% of the unit owners or tenants are 65 years of age or older if the property residential premises has 26 dwelling units or more.”
  • Each day the association violates the law can include a civil penalty of $750.00.
  • For more information, please visit: https://www.ilga.gov/legislation/billstatus.asp?DocNum=2562&GAID=17&GA=103&DocTypeID=HB&LegID=147670&SessionID=112

 

Illinois community associations and road maintenance – SB1460

  • Illinois SB1460 amends the Common Interest Community Association Act and the Illinois Highway Code.
  • It allows a common interest community association’s board of managers or directors to contract with the highway commissioner of a road district to supply materials for road maintenance or repair, provided the association represents 75% or more of the population of the township or road district.
  • The bill also requires such transactions to be included in the board’s finance report.
  • This legislation facilitates collaborations for road maintenance in communities with significant representation within a township or road district.
  • For more information, please visit: https://www.ilga.gov/legislation/BillStatus.asp?DocTypeID=SB&DocNum=1460&GAID=17&SessionID=112&LegID=146171

 

New Illinois Community Association Manager Rules

  • The Illinois Department of Financial and Professional Regulation (IDFPR) is a state government agency responsible for the licensing, regulation, and discipline of Community Association Managers (CAM).
  • IDPFR introduced new rules in 2023 impacting community association managers including license issuing, license renewal, disciplinary actions, and handling complaints.
  • KSN blog “New Illinois Community Association Manager Rules for 2023” https://www.ksnlaw.com/blog/illinois-community-association-manager-rules-2023/

 

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, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.

 

Please note the material contained in this article is for educational and informational purposes only and does not constitute legal advice. No attorney-client relationship is established by your review or receipt of the information contained in this article. You should not act on the information discussed in this article without first obtaining legal advice from an attorney duly licensed to practice law in your State. While KSN has made every effort to include up-to-date information in this article, the law can change quickly. Accordingly, please understand that information discussed in this article may not yet reflect the most recent legal developments. Material is not guaranteed to be correct, complete, or up to date. KSN reserves the right to revise or update the information and statements of law discussed in the article law at any time, without notice, and disclaims any liability for your use of information or statements of law discussed on the article, or the accessibility of the article generally. This article may be considered advertising in some jurisdictions under applicable law/s and/or ethical rules/regulations. © 2024 Kovitz Shifrin Nesbit, A Professional Corporation.