Community Legal Evaluation for Assessment Recovery (CLEAR)
New Illinois Community Association Collection Policy Legal Requirements: What Do Boards and Managers Need To Know?
Upcoming Illinois legislation takes effect January 1, 2027, and requires all condominium, homeowner (HOA), and townhome community associations subject to the Illinois Condominium Property Act and Illinois Common Interest Community Act to adopt a written assessment collection policy.
Preparing Now Can Help Avoid Future Challenges
Illinois community associations that delay preparing for these new requirements may face financial, operational, and collection concerns. Since implementing a compliant collection policy requires legal review, board approval, and operational changes, waiting until the last minute could create unnecessary challenges.
Potential Impact on Association Finances
Delayed assessment collections can strain cash flow, making it more difficult for associations to meet ongoing financial obligations and maintain financial stability.
Impact on Association Operations
Delays or limitations on collecting delinquent assessments can impact an association’s ability to fund routine maintenance, pay vendors, and complete capital improvement projects.
Pressure on Reserve Funding
Unpaid assessments can make it more difficult to adequately fund reserve accounts and plan for future repair and replacement projects.
Increased Collection Challenges
Without a legally compliant collection policy, associations may face additional hurdles when pursuing delinquent owners.
To help Illinois community associations prepare for this new law, KSN has developed CLEAR or Community Legal Evaluation for Assessment Recovery
Through CLEAR, KSN attorneys can assist board members and community association managers by:
- Determining whether a formal written delinquent assessment collection policy already exists
- Identifying any procedural and legal inconsistencies between the association’s current collection practices and governing documents
- Preparing legally compliant collection policies and association documents
- Satisfying the requirements of the legislation in anticipation of January 1, 2027
Please contact KSN today to discuss your legal needs.
We encourage you to contact KSN to discuss how these legal requirements may impact your association and how CLEAR can help position your community for compliance and continued collection success. Fill out the form or reach our law firm by calling 855-537-0500.
KSN provides a number of legal services including community association law, landlord/tenant law, collection, property tax appeals, and more.
By using the form, you understand and accept that we cannot treat unsolicited information as confidential. Further, initiating possible legal representation requires review for any potential conflict of interest.
Sign up for the KSN Newsletter
Join over 60,000 newsletter subscribers to receive legal updates, best practices, industry trends, and details on or upcoming events!