2023 Year End Legislative Update

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January 11, 2023, marked the inauguration of the new 103rd General Assembly. With the new General Assembly came a flurry of new legislation introduced in both the House and the Senate. As tracked by CAI, the newly introduced legislation included around 55 bills that affected community associations, community association managers, and the community association industry. The Illinois Legislative Action Committee (ILAC) reviewed these bills and engaged sponsors and other stakeholders as necessary to protect community associations and the community association industry. Many of the bills did not go anywhere.  However, a handful were enacted into law.

In addition to activity in the General Assembly, the Illinois Department of Financial and Professional Regulation (“IDFPR”) introduced changes to the Illinois Administrative Rules covering the regulation of community association managers and community association management firms under the Illinois Community Association Manager Licensing and Disciplinary Act.  ILAC worked closely with IDFPR on those changes to the Administrative Rules. Although the rules that were ultimately passed did not satisfactorily address all ILAC’s concerns, IDFPR did agree to some changes. The amended Administrative Rules became effective on June 2, 2023.

Aside from its endeavors in the General Assembly and with IDFPR, ILAC members and lobbyist Jeff Dixon traveled to Springfield. There they met with numerous legislators to build relationships, introduce legislators and their staff to CAI, discuss community association industry concerns, and address specific pending legislation. ILAC also hosted two separate virtual meetings with more than 20 Senate and House members and their staff to educate them about CAI, the community association industry, and to discuss key industry issues and concerns.

Bills that became law and administrative rule changes in 2023 include:

Electric Vehicle Charging Act (new) – SB40, SB384

SB40 created a new Electric Vehicle Charging Act. As introduced, the bill was similar to bills introduced in previous legislative sessions. This time around, more interested parties become involved in shaping the bill. The bill impacted several industries, not just community associations.  As was the case with previous similar bills, ILAC worked closely with the sponsor and proponents to have the bill amended as it pertains to community associations. One significant issue involved language in the bill that could have a significant adverse financial impact on an association. As introduced, the bill would have imposed requirements related to electric vehicle changing stations applicable to a community association if that association embarked on a project that would have fallen under the term “renovate” (as that term was defined in the bill). ILAC was successful in removing that problematic language. In its amended form, the bill provides that an association cannot prohibit electric vehicle charging stations. It also sets forth procedures and requirements to be followed when an individual owner desires to install an electric vehicle charging station for their personal use.

SB40 was enacted into law on June 9, 2023, as Public Act 103-0053 and became effective January 1, 2024.

As enacted by Public Act 103-0053, the Electric Vehicle Charging Act did not apply to existing associations (as that term is defined in the Electric Vehicle Charging Act). The legislature changed this during the fall veto session with the introduction of an amendment to SB384. SB384, as amended, would amend the Electric Vehicle Charging Act to make it applicable to existing associations as well as newly constructed associations.

SB384 was enacted into law on December 8, 2023, as Public Act 103-0572 and became effective January 1, 2024.

Homeowner Energy Policy Statement Act (amended) – HB2174

HB2174 amended the Homeowners’ Energy Policy Statement Act (HEPSA). We saw some changes to HEPSA in 2021. HB2174 was introduced at the request of members of the solar panel industry to address issues their customers have allegedly run into with homeowner associations since those 2021 changes. The bill presented several issues concerning ILAC because they would adversely impact associations administratively, financially, and could increase the likelihood of litigation. For example, language in the bill as introduced was broad and could have limited an association’s ability to regulate when, where, and how construction equipment and materials could be stored. ILAC successfully amended that language to ensure that equipment and materials cannot be stored on common area or other owner’s property. Also, the bill provides that owners may install solar panels without express permission if an association does not process an application within prescribed time periods. Although the sponsors and proponents would not agree to remove that provision, ILAC successfully worked with those parties to amend the bill and ensure that associations have an opportunity to cure before an owner can simply install solar panels without permission. ILAC successfully addressed other issues that shaped the bill to its current amended form.

HB2174 was enacted into law on July 28, 2023, as Public Act 103-0296 and became effective July 28, 2023.

Condominium Property Act and Common Interest Community Association Act (amended) – HB2562

HB2562 amended the Condominium Property Act (CPA), the Common Interest Community Association Act (CICAA), and the Landlord and Tenant Act. With respect to the CPA and CICAA, the bill creates new similar sections in each statute. Those new sections establish minimum heating and cooling requirements applicable to associations in which their respective declarations limit ownership, rental, or occupancy of a unit to a person 55 years of age or older.

Generally, buildings that have a central cooling system serving all units must ensure that it operates when the heat index exceeds 80 degrees Fahrenheit. Buildings with a central heating system serving all units must maintain specified minimum temperatures during cold months (at least 68 degrees Fahrenheit during waking hours; at least 62 degrees during sleeping hours). A building that does not have a central cooling system serving all units should provide at least one indoor common gathering space in which a cooling system operates when the heat index exceeds 80 degrees Fahrenheit.

The bill, as introduced, was problematic to community associations because it would have imposed requirements that were administratively and financially burdensome. ILAC successfully worked closely with the sponsor to narrow the scope of the bill and to ensure that it was more along the lines of similar legislation and ordinances.

HB2562 was enacted into law on June 30, 2023, as Public Act 103-0161 and became effective January 1, 2024.

Common Interest Community Association Act (amended) – SB1460

SB1460 amended CICAA by adding a new subsection (k) to Section 1-30. Among other things, Section 1-30 sets forth duties and obligations of the board of managers/directors. The new subsection (k) expressly grants the board the authority to contract with the highway commissioner to furnish maintenance and repair to roads situated in the association. That authority is limited to situations when the association comprises 50% or more of the population of the township or road district in which it is located.

SB1460 was enacted into law on August 4, 2023, as Public Act 103-0486 and became effective January 1, 2024.

Condominium Property Act, Common Interest Community Association Act, and Condominium and Common Interest Community Ombudsperson Act (amended) – HB1358

An amendment to HB1358 was filed in the Senate during the fall veto session. As amended, HB1358 amended the CPA, CICAA, and Condominium and Common Interest Community Ombudsperson Act (“Ombudsperson Act”) to extend the Ombudsperson Act another two years. The bill extended the date on which the Ombudsperson Act would automatically repeal from January 1, 2024, to January 1, 2026.

HB1358 was enacted into law on November 17, 2023, as Public Act 103-0563 and became effective November 17, 2023.

CAM Licensing Administrative Rules (amended)

The new Administrative Rules governing community association managers and community association management firms became effective June 2, 2023.  Some key changes include:

  • New requirements and procedures for CAM Firms to obtain licensure including a requirement for each firm to have a Designated CAM.
  • Updates to Professional Title requirements; licensees are now exclusively referred to as Community Association Managers (CAMs).
  • Requirements for continuing education have now been instituted; managers are required to earn 12 credit hours of continuing education every other year.
  • Unprofessional conduct has now been updated to include specific definitions.
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Kristofer Kasten

Kristofer D. Kasten is a principal and founding member of Bartzen Rosenlund Kasten LLC (“BRK”). BRK is a boutique law firm focusing on the representation of...

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