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).

Community Association Managers are responsible for managing homeowner and condominium associations. Their duties often include collecting association dues, managing association vendors, resolving disputes between owners, and enforcing the community’s rules.

 

As part of their role in regulating Community Association Managers, the IDFPR:

  • Issues licenses: The IDFPR typically requires Community Association Managers to meet certain educational or training requirements and pass a state licensing exam.
  • Renews licenses: IDPFR is responsible for overseeing the Community Association Managers license process.
  • Conducts disciplinary actions: If a Community Association Manager is reported for misconduct or illegal activities, the IDFPR investigates these reports and can take disciplinary actions including fines, license suspensions, or revocations.
  • Handles complaints: The IDPFR investigate complaints against Community Association Managers and take necessary actions based on their findings.

 

IDPFR has set forth new regulations pertaining to Community Association Manager licensing effective June 2, 2023. Below is a summary of some of the new requirements.

 

Updates to Community Association Manager (CAM) Firms

  • All Community Association Manager Firms must now be licensed
  • Title – The professional title “Property Manager” is no longer allowed, and must be updated to “Community Association Manager”
  • The Illinois Department of Financial and Professional Regulation (IDFPR) must be informed within 14 days of any employment commencement or termination of a CAM at the firm, or if there is a change in the Designated CAM (DCAM).
  • The firm must uphold fidelity/crime, general liability, and Errors and Omissions (E&O) insurance.
  • Unless specified otherwise, all Association Accounts should be held at financial institutions insured by the Federal Deposit Insurance Corporation (FDIC).
  • Designated Community Association Manager – Every licensed firm is required to appoint a Designated Community Association Manager (DCAM). The DCAM is responsible for overseeing all licensed and unlicensed employees within the firm. The appointment of a DCAM is a continuous requirement for maintaining the firm’s licensure.
  • Management transition – Unless specified differently in the management contract, the Community Association Manager firm is obliged to transfer all accounts, funds, ledgers, and statements, or respond to any record requests from the association’s Board of Directors within 10 days.
  • Auditing – IDPFR has the authority to inspect management company accounts to verify adherence to the rule of maintaining distinct, separate accounts for each association, and to ensure that there is no mixing of funds between different associations.

 

Updates to Community Association Manager (CAM) Continuing Education

  • Continuing education requirements – In order to renew the Community Association Manager license, it’s necessary to complete 12 hours of continuing education within each renewal period. The first renewal cycle requiring these hours is due by August 31, 2025, and this requirement will continue every two years thereafter. Only educational courses offered by approved sponsors will be recognized and contribute to fulfilling the continuing education requirements.
  • Continuing education providers – The continuing education provider must be approved by the IDFPR. The approved provider is also responsible for confirming participant attendance and issuing completion certificates.

 

Updates to Community Association Manager (CAM) Unprofessional Conduct

  • Offering legal advice without possessing the necessary license.
  • Not adhering to the rules stated in the association’s governing documents.
  • Presenting facts inaccurately, making false statements, or engaging in deceitful behavior.
  • Not revealing conflict/s of interest
  • Breaching fiduciary duties to the community association.
  • Not complying with the terms of the management agreement or legal requirements.
  • Failing to handle confidential information properly.
  • Neglecting to provide timely notice and delivery of documents to unit owners as mandated by Illinois laws or legal documents.
  • Not disclosing affiliation agreements and their terms that bind a client community association.
  • Assisting a licensed or unlicensed individual in violating the applicable law.
  • Hindering an inspection, audit, investigation, examination, or disciplinary proceeding.
  • Not returning association documents and property within 30 days after termination.
  • Imposing fees that were not disclosed in the management agreement.

 

Community Association Manager (CAM) Resources

 

Legal Resource

Do not hesitate to contact our law firm if your condominium, homeowner (HOA), and townhome community association has legal concerns.

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.

 

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