information about the association’s major components might harm an association or create expenses or liability – essentially arguing that “if we do not know what might be wrong with our components then we do not have to fix them.” The argument against the legislation is that if an association and its board purposefully remain ignorant about aging or failing components, they would have no duty to repair these components. It certainly is cheaper to ignore failing components.


Unfortunately, at the close of the 2025 legislative session, the voices who supported ignorance over knowledge have, once again, prevailed. Neither the Senate Bill nor the House Bill had a hearing at the committee level. A majority of the legislators never even had a chance to consider the bills. The opposing voices, with their continued questions and repeated “concerns,” by design, prevented both the consideration and passage of the legislation. At the end of the 2025 legislative session the bills are dead.


By choosing ignorance over knowledge, the legislators have performed a great disserve to the people of Illinois who live in condominium and common interest communities. For too long reserve funding has simply been a guessing game potentially unrelated to the actual needs of the association. This bill seeks information and knowledge. By design it is trying to protect associations and its members from expensive unforeseen repairs/ replacements that can devastate a community with special assessments or bank loans.


ILAC views this piece of legislation as a consumer protection bill. The benefits are numerous:


1. Ensures funds are available for routine maintenance and capital repairs if reserve fund is properly funded;


2. Ensures that buyers are aware that the property is properly funded and will therefore be more likely to buy in that association (while at the same time helping the seller secure a buyer knowing the financial security of the association);


3. Aids associations in securing reasonable insurance rates/coverage;


4. Provides banks/lending institutions with important financial info that the association is fiscally secure and therefore merits funding, if needed, from the financial institution;


5. Helps board members and homeowners with the budgeting process;


6. Ensures the association meets the reserve funding requirements of Fannie Mae & Freddie Mac.


Association buildings and capital assets all eventually fail and need replacement. Associations should be encouraged to plan ahead in order to ensure that all costs and expenses can be covered without the need for special assessments. The State of Florida passed major legislation which likely over complicated reserve studies and funding as a result of a catastrophic tragedy where 98 lives were lost. Hopefully, the Illinois Legislature will not require such a calamity before it acts.


IF YOU ARE INTERESTED IN WORKING WITH ILAC TO ADVANCE THE RESERVE STUDY BILL PLEASE CONTACT info@cai-illinois.org. THANK YOU.


cai-illinois.org • 847.301.7505 | 23


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