Condo associations must familiarize themselves with the Illinois Condominium Property Act. Both unit owners and condo board members alike would benefit from understanding this piece of legislation and how it affects condo associations in the state.
What is the Illinois Condominium Property Act?
The Illinois Condominium Property Act (ICPA) governs condominium associations in the state of Illinois. It sets the rules for the management and operations of these associations. The ICPA ensures that condo associations practice fair governance, uphold owner rights, and prioritize financial stability.
The Condominium Property Act of Illinois outlines the legal framework for condo associations. It also describes the rights and responsibilities of both unit owners and the association itself.
The Condo Act Illinois passed applies to all condominium associations in the state unless otherwise expressly described. If Illinois condo association rules and regulations conflict with the ICPA, the provision is considered void and ineffective. The ICPA takes precedence over a condo association’s CC&Rs, bylaws, and articles of incorporation.
The Importance of the Illinois Condominium Property Act
Board members must understand the Illinois Condominium Act so that they can ensure their COA operates legally. The ICPA covers several important aspects of governance, operations, and management. These include board responsibilities, owner rights, financial rules, and dispute resolution.
When the condo board knows these details, they can make informed decisions and avoid legal trouble. Additionally, the ICPA protects condo unit owners by upholding their rights and ensuring responsible governance. As per the Illinois Condo Act, condo associations must manage communities in a fair and consistent manner.
Key Provisions of the Illinois Condominium Property Act
Since the ICPA covers a wide range of topics, board members often find themselves at a loss. Condo boards don’t always possess the legal background and expertise required to understand the provisions of this law. Of course, it is best for condo associations to hire a competent lawyer who is familiar with condominium law.
Here are the key provisions of the Illinois Condominium Property Act.
1. Board Powers and Responsibilities
Condo boards have a duty to manage the community efficiently (765 ILCS 605/18). They must enforce rules, maintain common areas, and oversee finances. The ICPA grants them authority to make decisions in the best interest of the community.
Additionally, board members must act in good faith. They should avoid conflicts of interest and follow governing documents. Transparency and fairness help maintain trust between the board and residents.
2. Unit Owner Rights and Responsibilities
Condo owners have specific rights under the ICPA. They can attend board meetings (765 ILCS 605/18), review financial records (765 ILCS 605/19), and vote on major decisions. Boards must respect these rights to maintain a transparent and cooperative community.
Owners also have responsibilities. They must pay assessments on time and follow community rules. Failure to do so can lead to fines or legal action.
3. Assessment Collection and Budgeting
Financial stability is critical for any condominium association. The ICPA sets guidelines for budget creation, assessment collection, and financial reporting (765 ILCS 605/9). Condo boards must create a fair budget that covers maintenance, reserves, and other costs. They can impose late fees and liens on owners who fail to pay.
4. Maintenance and Repairs
The ICPA clearly defines maintenance responsibilities. The association must take care of common areas like hallways, roofs, and shared utilities.
Meanwhile, unit owners are responsible for maintaining their individual units. If a repair issue affects multiple units, the board must determine responsibility based on governing documents. Proper maintenance prevents costly repairs and legal conflicts.
5. Rules on Meetings and Transparency
The ICPA requires open board meetings, ensuring transparency in decision-making (765 ILCS 605/18). Boards must notify owners in advance and allow them to attend. Meeting minutes should be recorded and made available to owners upon request. This ensures accountability and prevents disputes over board actions.
6. Amendments to Governing Documents
Condo associations may need to update their governing documents over time. The ICPA outlines the process for amending declarations, bylaws, and rules (765 ILCS 605/27).
Changes often require a majority vote from owners. Boards should clearly communicate proposed amendments and explain how they benefit the community.
7. Dispute Resolution and Legal Actions
It is not uncommon for disputes to happen within a condo community. Conflicts between boards and owners can arise over fees, maintenance, or rule enforcement. The ICPA provides a framework for resolving disputes fairly (765 ILCS 605/9.2).
Boards should attempt mediation or arbitration before taking legal action. Lawsuits can be costly and time-consuming, so early conflict resolution benefits everyone.
Compliance and Common Legal Issues
Non-compliance with the ICPA can lead to serious consequences. Boards must stay informed about legal requirements to avoid fines or lawsuits.
While violations can vary from one place to another, some are more common than others. Common violations of the Illinois Condominium Property Act include improper fee collection, lack of transparency, and failure to maintain common areas. Boards should regularly review their policies and consult legal experts if necessary.
Unit owners have a right to take legal action against a condo association that violates the ICPA. On the other hand, condo boards should document all decisions and communications. Clear records help defend the association if legal issues arise.
Illinois Condominium Property Act vs Illinois Common Interest Community Association Act
In Illinois, the Condominium Property Act governs condominium associations in the state. Community associations, on the other hand, are governed by a separate piece of legislation. The Illinois Common Interest Community Association Act governs the operation and management of homeowners associations that:
- Consist of at least 11 private residents; and,
- Collects over $100,000 annually from its members.
Single-family communities, townhome communities (attached or detached), and villas can also fall under the jurisdiction of this law. The Illinois Common Interest Community Association Act does not apply to condo associations or cooperatives.
Consult a Legal Professional
Understanding the Illinois Condominium Property Act is essential for condo boards. It ensures fair governance, financial stability, and compliance with state laws. In addition to the existing laws, condo boards must also keep up with any legal changes. Laws can be amended and new laws can be introduced over time. When in doubt, a condo association should turn to a legal professional.
Hillcrest offers condo management services to communities in Chicago. Call us today at 630-627-3303 or contact us online to request a proposal!
