Homeowners associations are governed by IL HOA laws. It is essential for board members and homeowners alike to understand these laws. In doing so, they can fulfill the association’s obligations, protect members’ rights, and follow the proper legal framework.
What are IL HOA Laws?
Homeowners associations are organizations responsible for managing and maintaining a neighborhood. It consists of homeowners, led by elected volunteers known as the board of directors. Membership is typically mandatory upon purchasing a home in the community.
Most states have established laws specifically addressing the operations, management, and framework of HOAs. Illinois is no different. These laws encompass a range of topics, including governance and restrictions, homeowner rights, and HOA obligations.
How IL HOA Laws Affect Communities
Illinois HOA laws shape the way homeowners associations and condominium communities must operate. These laws affect nearly every aspect of governance, from how boards are elected to how they manage finances and enforce rules. By providing a clear legal framework, the laws help maintain order and protect homeowner rights. They also ensure that associations function with accountability and transparency.
For boards, Illinois laws require open meetings, fair elections, and detailed financial practices. With these provisions in place, HOAs can avoid mismanagement, and boards can earn the trust of their members. Homeowners, on the other hand, benefit from having the right to access records, challenge unfair decisions, and vote on community business. Without these protections, board actions could go unchecked.
The HOA laws in Illinois also set critical expectations for how associations can create and enforce rules. Associations can adopt rules to preserve property values, but boards must follow proper procedures when enforcing them. This includes providing written notice, allowing hearings, and making sure penalties are reasonable. The law also protects homeowners from selective enforcement.
Overall, Chicago HOA laws are important because they provide structure and guidance while protecting the rights of members. With these laws, associations can minimize conflicts, ensure successful governance, and maintain stable communities.
Most Important IL HOA Laws to Know
There are several key laws that board members and homeowners must know. Here are the most essential Illinois HOA laws.
Illinois Condominium Property Act
When looking for Illinois COA laws, the Condominium Property Act takes the top spot. This law governs the creation, management, and operation of condominiums in the state. It covers the responsibilities of both board members and homeowners. It also addresses how condos should manage their finances, enforce rules, and maintain common areas.
Moreover, the Illinois Condominium Property Act details the process for dealing with disputes within the association. If unit owners wish to review the condo’s records, they can send a written request, and the board has 10 business days to comply.
Illinois Common Interest Community Association Act
The Common Interest Community Association Act governs the creation, management, and operation of all community associations apart from condominiums. This includes single-family HOAs and townhome associations.
This law details the rights and responsibilities of both HOAs and the homeowners. It addresses how to enforce covenants and restrictions, manage finances, and make amendments to rules. The CICAA also covers board member qualifications, open meeting rules, notice and record access requirements, and election procedures.
Condominium and Common Interest Community Ombudsperson Act
The Condominium and Common Interest Community Ombudsperson Act promotes alternatives for dispute resolution for HOAs and condominiums. It establishes an ombudsperson who can assist in mediating disputes between homeowners and their associations.
The goal of this law is to streamline the process of dispute resolution and reduce the need for litigation. Litigation can be very lengthy and expensive. While this law also establishes fees for this service, they are more affordable than the costs associated with a lawsuit.
Illinois General Not-for-Profit Corporation Act of 1986
The General Not-for-Profit Corporation Act of 1986 establishes the legal structure and governance for nonprofit corporations. In Illinois, most homeowners’ associations (HOAs) and condominiums are formed as nonprofit organizations. This law addresses the creation, operation, and dissolution of these corporations. It covers the responsibilities of board members, member rights, and the procedures for meetings.
Illinois Community Association Manager Licensing and Disciplinary Act
The Community Association Manager Licensing and Disciplinary Act regulates community association managers and companies. This law ensures that individuals and companies providing management services to communities possess the necessary qualifications and licenses. It requires these entities and individuals to adhere to high standards of conduct.
Illinois Human Rights Act
The Illinois Human Rights Act establishes protections against housing discrimination and other forms of discrimination. For HOAs, this law requires fair treatment for all residents regardless of their:
- Race
- Color
- Religion
- Sex
- National origin
- Ancestry
- Age
- Order of protection status
- Marital status
- Physical or mental disability
- Military status
- Sexual orientation
- Pregnancy
- Unfavorable discharge from military service
- Familial status
There are also provisions within this Act that apply to HOAs with common areas open to the general public. This Act provides similar protections to the federal Fair Housing Act.
Illinois Assistance Animal Integrity Act
The Illinois Assistance Animal Integrity Act provides reasonable accommodations for assistance animals in housing. This includes service animals and emotional support animals. According to this law, housing providers (such as HOAs) must reasonably accommodate residents with disabilities, even if their rules generally don’t allow animals.
Homeowners’ Energy Policy Statement Act
The Homeowners’ Energy Policy Statement Act addresses the development and use of solar energy systems. This law prevents HOAs and condo associations from adopting rules that prohibit the installation or use of solar energy systems on homes. It also expressly bans any rule that has the effect of prohibiting the installation or use of solar energy systems.
Unenforceable Rules Under IL HOA Laws
There are specific rules that HOAs can’t enforce according to the law. In Illinois, an HOA can’t generally prohibit the following:
- Displaying the American flag or military flag (provided homeowners display the flag according to the U.S. Flag Code)
- Installing a flagpole to display the American flag or military flag
- Installing a satellite dish or antenna on a home
- Hanging or attaching a religious object to the home or unit’s front door
- Accommodating religious practices
In general, HOAs can regulate the size, placement, and manner of display of the items above. That said, if an HOA’s rules conflict with federal or state laws, they become void and unenforceable. An HOA that insists on enforcing unenforceable rules can face legal trouble.
Where to File a Complaint Against HOAs in Illinois
Homeowners should first speak to their HOA board or manager about any concerns or complaints they have. It is always best to attempt to resolve the issue internally before escalating to a higher agency. After exhausting all internal methods, homeowners can then make a report or file a complaint with the appropriate agency.
- Illinois Department of Financial and Professional Regulation
- Federal Trade Commission
- Consumer Financial Protection Bureau
- Fair Debt Collection Practices Act
- Illinois Department of Financial and Professional Regulation
- U.S. Department of Urban Housing
Homeowners can reach out to the Condominium and Common Interest Community Ombudsperson for dispute resolution. If that doesn’t work, homeowners also have the option of filing a lawsuit.
Turning to Professionals
There are several IL HOA laws that associations must think about, but navigating them isn’t always easy. Laws constantly change, and new laws can be introduced. Most HOA and condo boards struggle to keep up with these changes or to even understand existing provisions. Hiring a lawyer or an HOA management company can greatly help.
Hillcrest offers HOA management services to communities in Chicago. Call us today at 630-627-3303 or contact us online to request a proposal!
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- Condo And HOA Rule Enforcement
- What Is The Open Meeting Act in HOAs?
- The Problem Of HOA Not Enforcing Rules And Selective Enforcement
