Illinois
LEGISLATIVE ACTION COMMITTEE LEGISLATIVE UPDATE By Brian Palm; ILAC Member.
THE BATTLE CONTINUES: Inside CAI Illinois’ 2026 Lobby Day and the Fight for Smart Legislation
This year’s battles were fought in hearing rooms, committee chambers, and the busy hallways of the Illinois State Capitol in Springfield, Illinois. For those of us in the community association industry, the fight is just as real. Bad legislation can cripple associations, while good legislation can strengthen communities for decades.
This year, four dedicated CAI Illinois members, alongside the CAI Illinois Legislative Action Committee (ILAC) lobbyist, stepped onto that battlefield for 2026 Lobby Day. Their mission was clear: defend associations against harmful proposals and advance legislation that promotes responsible governance and long-term financial stability.
The Front Line: SB 3401 Advances
At the center of this year’s fight is Senate Bill 3401, the long-anticipated reserve study legislation. Despite late- stage opposition, the bill passed the Illinois Senate with a decisive 55–0 vote. That kind of unanimous support is rare, and it underscores the strength of both the bill and the advocacy behind it.
Now, the battle shifts to the Illinois House. If passed there, SB 3401 will head to the Governor’s desk, marking a major victory for Illinois community associations.
This legislation represents one of ILAC’s top priorities for 2026. It would require certain condominium and common interest communities to conduct reserve studies every five years. These studies would identify major components, estimate remaining useful life, project repair and replacement costs, and recommend appropriate annual reserve contributions.
Importantly, the bill includes practical safeguards. Associations with 15 or fewer units are exempt, and communities without an existing reserve study will have until January 1, 2028, to comply. This balanced approach ensures both accountability and feasibility.
38 | COMMON INTEREST® Opposition Without Evidence—And a Strategic Turn
No legislative battle is without resistance. Late in the process, opposition emerged, most notably from the Illinois Realtors, who raised concerns about potential costs. However, these concerns were presented without supporting data, and ILAC moved quickly to challenge those assumptions.
Through direct engagement, data-driven discussion, and strategic advocacy, ILAC, working closely with its lobbyist helped reframe the conversation. With the support of the ILAC Committee, discussions emphasized a key reality: reserve studies are not a cost driver, but a cost management tool. Proper planning prevents special assessments, reduces financial shocks to homeowners, and ultimately supports long-term housing affordability.
As a result of those efforts, the Illinois Realtors shifted their position from opposition to neutral on SB 3401.
That shift matters. It reflects a broader understanding that this legislation is not about adding burdens, it is about protecting homeowners, stabilizing communities, and ensuring that housing remains financially sustainable over time.
A Coordinated Campaign
The success of SB 3401 didn’t happen by chance. It is the result of months of coordinated effort by ILAC and engaged CAI members.
Key milestones include:
• Securing bipartisan sponsorship in both chambers (HB 2563 / SB 3401)
• Achieving unanimous passage in committee (House: 20–0; Senate: 8–0)
• Generating more than 650 grassroots messages to legislators
• Launching member outreach campaigns with strong engagement
• Summer 2026 • A Publication of CAI-Illinois Chapter
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