Changes over 50 Years
Over the last 50 years community association living in Illinois has shifted from locally run, paper-based homeowner and condominium boards toward more regulated, professionalized, and technology-enabled governance. Key trends include stronger statutory oversight, greater transparency and financial standards, expanded litigation and insurance exposure, demographic and use-pattern changes (rentals, short-term rentals, aging residents), and pandemic-driven operational changes such as virtual meetings and altered collection practices.
Legal and Regulatory Trends
• Stronger statutory frameworks and amendments: Illinois community associations have operated under longstanding laws and statutes (for example the Illinois Condominium Property Act (ICPA), the Illinois Common Interest Community Association Act (CICAA), and an association’s Declaration of Covenants, Conditions and Restrictions (CC&Rs) that have been amended periodically to address record access, board duties, and dispute resolution.
• More detailed record-keeping and transparency requirements: Legislatures and courts have pushed for clearer rules on owner access to association books and meeting minutes and for formal procedures on notice and meetings.
• Increased focus on governance standards: There has been growing emphasis on fiduciary duties, conflicts of interest, and procedural compliance for boards, encouraging use of written policies, standardized bylaws/ declarations, and adoption of rules of order.
• Dispute resolution and small-claims mechanisms: Alternative dispute processes and more frequent use of mediation/arbitration have emerged as owners and associations seek to avoid costly litigation.
Financial Management and Assessments
• Reserve funding and financial reporting: Best practices and trustee expectations have shifted toward formal reserve studies, regular budgeting, and professionally prepared financial statements to avoid deferred maintenance and surprise special assessments.
• Collections, foreclosures and delinquencies: The foreclosure crisis and subsequent legal adjustments changed how associations handle delinquent assessments, with heightened attention to statutory compliance before lien filings and sales.
• Rising insurance and catastrophic exposure: Increased premiums and higher deductibles for property and Directors and Officers (D&O) Liability Insurance have pushed associations to reassess coverage, implement stricter maintenance plans, and budget for larger insurance costs.
Governance and Professionalization
• Bigger role for managers and vendors: Many associations moved from volunteer-only management to hiring community association managers or management companies for accounting, vendor oversight, and regulatory compliance.
• Board education and standardized practices: More boards pursue formal training,certifications, and adoption of written policies (reserve policy, investment policy, collection policy) to reduce liability.
• Increased use of attorneys: Counsel is more frequently retained for drafting governing documents, collection actions, rule enforcement, and conflict avoidance.
Technology and Communications
• Digital records and owner portals: Associations increasingly use online platforms for dues collection, gate or amenity reservations, and storing governing documents, improving transparency and efficiency.
• Electronic voting and virtual meetings: Legal and practical acceptance of electronic voting and virtual meetings has expanded, especially accelerated during the COVID-19 pandemic.
• Security, privacy, and cybersecurity concerns: With more digital systems, associations face issues around protecting owner data and payment information.
Resident Composition and Use Patterns
• Changes in demographics: Aging-in-place trends plus interest from younger buyers alter amenity priorities, accessibility needs, and governance concerns.
• Short-term rentals and leasing: Conflicts over short- term rentals (e.g., Airbnb) and investor-owned units have become common governance issues, prompting associations to adopt or tighten rental and leasing restrictions.
• Lifestyle and amenity expectations: Demand for fitness centers, high-speed internet, EV charging, and pet facilities has changed capital planning and rules.
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