- Community Associations, Legal Updates
- Illinois
Several City of Chicago specific legislative changes taking effect in 2026 that will directly impact how some community associations are governed. These updates address everything from composting, Additional Dwelling Units (ADU), and more. Chicago board members and property managers should understand how these laws impact their association’s day-to-day operational responsibilities and legal exposure.
Legal Update #1: Organic-Waste and Composting Ordinance
On October 16, 2025, the City of Chicago adopted a new organic-waste and composting ordinance (SO2025-0018160) that modifies how composting and organic-waste collection are regulated within the city. The new rules carry important implications for condominium, homeowner (HOA), and townhome community associations in the City of Chicago, Illinois.
Here’s a summary of the key provisions of the ordinance and how they apply in an association setting:
Ban on “unreasonable restrictions”: The ordinance provides that property managers or building owners may no longer enforce blanket prohibitions on tenants composting, dropping off organic waste at certified facilities, or contracting with licensed private haul-away providers provided the systems meet the ordinance’s requirements (ex. fully enclosed, pest-controlled, leak-resistant containers).
Requirements for containers and control of odor/pests/leaks: The ordinance mandates that compost/organic-waste containers must be fully enclosed, have openings no larger than ¼ inch (or equivalent seal), control odor/pests, be leak-resistant, and operate in a safe, sanitary manner.
Impact on Chicago Community Associations
Here are several practical recommendations for boards, property managers, and unit owners:
- An association cannot adopt or maintain a rule that simply says “no resident may compost or participate in an organic-waste collection program” if the resident’s plan complies with the container-and-collection requirements.
- Boards must review governing documents and rules/regulations for any overly broad prohibitions and revise them to allow compliance with the ordinance, subject to “reasonable restrictions” (ex. container size, location, odor, control, pest control).
- Particularly in condo or townhome settings where units share building systems or common-area waste systems, the association must balance unit-owner rights (to compost/organic-waste drop-off) with common-area responsibilities (waste containment, collection, maintenance).
- The association should consider creating or updating a policy spelling out acceptable containers, locations, maintenance standards, and inspection rights to avoid odor/pest issues that affect the common areas or other residents.
- In shared-building scenarios (ex. condos with shared garbage rooms or service corridors), the board should review whether the existing waste-receptacle setup permits safe composting or whether additional infrastructure (ex. odor-seal lids, pest-proof bins, dedicated drop-off area) is needed.
Fines, Legal Challenges, and Enforcement
The ordinance allows individuals to seek injunctive or declaratory relief if their rights under the ordinance are violated. The City of Chicago has enforcement authority with fines of roughly $300–$600 per offense. Non-compliant operations, especially those causing nuisances, may be fined and ordered to stop or remedy the condition.
Board members and management should be aware that, if community rules are overly restrictive or applied in a way that effectively prohibits composting in compliant containers, unit owners may challenge the association.
On contrast, the association itself may face liability or regulatory enforcement if composting and/or organic-waste containers are improperly placed, maintained or become a nuisance (ex. odor, pests, leaks) in the common areas or service areas.
It’s prudent for Chicago community associations to adopt an internal compliance plan that establishes inspections, outlines notice requirements, defines violation procedures for composting misuse, and details remediation steps for problem containers or misuse.
Legal Update #2: Expanded Additional Dwelling Unit (ADU) Ordinance
Effective April 1, 2026, the City of Chicago will significantly expand its Additional Dwelling Unit (ADU) Ordinance, allowing new residential units in attics, basements, and accessory structures such as coach houses.
The amendment to Section 17-7 of the Chicago Zoning Ordinance is intended to increase housing availability, support multigenerational living, and provide homeowners with additional rental income opportunities. The ordinance also creates a formal pathway to legalize existing units that were previously built without proper zoning approval or building permits.
What This Means for Chicago Community Associations
The number of ADUs permitted depends on the size of the property:
- Properties with 1 to 4 legal units may add one coach house or one conversion unit (for buildings at least 20 years old).
- Properties with 5 or more units may not add coach houses but may create conversion units equal to up to 33% of the existing legal units.
For City of Chicago community associations, zoning approval does not override governing documents. Declarations, bylaws, and rules may still restrict additional units, alterations, or changes in use.
Best Practices for Boards and Property Managers
In advance of receiving owner requests regarding ADUs, boards and property managers should consider:
- Reviewing governing documents to determine whether ADUs are permitted or restricted
- Coordinating with legal counsel before approving any ADU-related requests
- Ensuring compliance with architectural standards, building access, parking, and utility considerations
- Monitoring enforcement consistency to avoid selective approval claims
Legal Resource
Do not hesitate to contact KSN if you are a Chicago community association board member or property manager with questions about these recent legislative updates.
Please contact our law firm by calling 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.
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