2026 Illinois Legislative Session Report

Community Associations Institute (CAI) Illinois Legislative Action Committee (ILAC) spent the 2026 legislative session advocating on behalf of approximately 3,900,000 Illinoisans living in 1,550,000 homes in more than 20,000 community associations.

Legislative Overview

The Illinois General Assembly operates on a two-year cycle called a biennium, currently in the 104th General Assembly (2025–2026). The Illinois General Assembly’s 2026 spring session for the 104th General Assembly convened on January 13 and adjourned on May 31. The legislature typically reconvenes in the fall for a two-week veto session.

Any pending bill that fails to pass both chambers and receive the Governor’s signature before the end of a two-year term “dies” and must be completely reintroduced as new legislation in the next session. Thus, any bills introduced in 2025 or 2026 that did not become law are considered dead for this legislative session. Learn more about how laws are created in Illinois.

Grassroots Overview

On March 25, 10 CAI member-advocates from across Illinois convened in Springfield for CAI’s Illinois Advocacy Day, speaking directly to lawmakers about the issues facing our industry. They held productive meetings with 8 legislative offices, sharing CAI resources and articulating ILAC’s legislative priorities. During their time in Springfield, LAC advocates testified in committee on the importance of routine reserve studies and dedicated funding, advancing legislation that was a top ILAC priority this session.

CAI launched a virtual call-to-action alongside this event, asking Illinois residents who were unable to attend in-person to reach out to their legislators to encourage them to meet with CAI while ILAC was in Springfield. As a result, 7 advocates sent a total of 14 messages to 14 Illinois state legislators.

Priority Legislation

CAI Legislative Action Committees (LACs) support legislation that aligns with CAI’s public policy positions and opposes legislation that does not. If a LAC believes it may need to consider or adopt any legislative or regulatory position that would be in conflict with these official positions, it must submit a request for a deviation to be considered by CAI’s Government & Public Affairs Committee and/or Board of Trustees.

HJR 60 & HJR 67 – Condominium Task Force

These identical House Joint Resolutions (HJR) would have established a condominium task force to examine and provide legislative recommendations on governance and financial reporting. The task force would have included legislators, and various industry professionals appointed by legislative leadership. Unlike typical legislation which becomes or amends state law, a House Joint Resolution is a formal statement of intent or administrative directive.

ILAC opposed both resolutions, due to the unintentional consequences which can follow these task forces, especially when CAI isn’t specifically included in the task force roster. The task force would have been required to report its findings to the Governor and General Assembly by January 2027, providing an extremely short timeline for the task force to be formed, propose recommendations and ensure those recommendations receive proper feedback and public comment.

ILAC worked alongside its lobbyist to discuss these concerns with the legislative sponsors. A call-to-action campaign was launched prior to HJR 60’s hearing in the House Housing Committee. 1,350 messages were sent to Committee members, with over 300 message personalized with individualized stories from 75 IL CAI members. Due to this advocacy, neither resolution was enacted.

Status: Both resolutions successfully died in committee.

HB 2563/SB 3401 – Reserve Studies

ILAC supported, led the drafting and introduction of this bill, which would have outlined a clear framework for reserve studies, including identifying major common elements, assessing their remaining useful life, and recommending appropriate annual reserve contributions. The bill included a transition period requiring associations without an existing study to comply by January 1, 2028, as well as requiring that reserve studies be made available during the resale process. Associations with 15 or fewer units would be exempt from this legislation.

CAI supports requiring reserve studies for new and existing communities with major shared assets. These studies assess property conditions, review finances, and recommend proper funding to ensure future capital needs are met, which will help prevent deferred maintenance, surprise special assessments, and unsafe conditions.

ILAC advocates were engaged in the process of this legislation throughout the entire process. During the ILAC Advocacy Day, advocates met with legislators to urge support for the bills as well as provided in-person testimony. Four separate Call to Action campaigns were launched to support the passage of these bills, with over 700 messages sent to various legislators urging their support of the bill. As a result, HB 2563 passed the Judiciary Committee with unanimous support and was held on third reading. The Senate companion, passed the Senate 55-0 and was held in the House Judiciary Committee.

Unfortunately, legislators received inaccurate information that these types of studies raise housing costs for homeowners, and that this proposal would have been contradictory to their legislative priority of housing affordability. ILAC and their lobbyist tried to educate members on the realities of these studies, however, the bills were held at the last minute in committee.

ILAC remains committed to working with legislators to re-introduce similar language in future sessions and remains committed to condo safety for Illinois.

Status: Both bills died in committee.

CAI SUPPORTED THE BELOW BILLS

SB 3527 – Collection of Assessments

ILAC supported this legislation, which will require associations to adopt written policies for the collection of unpaid assessments. Policies must specify a range of information including, but not limited to, payment deadlines, late fees, payment plan terms, and legal collection remedies. The bill also requires associations to provide specific financial information to potential purchasers including anticipated capital expenditures and insurance coverage. CAI and ILAC worked with the bill author to craft this legislation and supported it throughout the legislative process.

Status: Successfully passed both chambers of the legislature. Awaiting Governor action.

HB 5428/SB 3897 – IDFPR – Various Licenses

ILAC supported this legislation, which impacts the Community Association Manager Licensing and Disciplinary Act. The bill will extend the current repeal date from January 1, 2027 to January 1, 2032. Prior to the bill’s introduction, ILAC leadership received the proposed language and worked with stakeholders to recommend updates related to insurance requirements. Those recommendations were incorporated into the legislation, reflecting ILAC’s commitment to strengthening professional standards and supporting effective community association management.

Status: Senate bill passed both chambers of the legislature. Awaiting Governor action.

CAI OPPOSED THE BELOW BILLS

CAI LACs oppose legislation that is at odds with CAI’s public policy positions.

HB 2648 & HB 5617 – Common Interest Association Records

ILAC opposed these bills, which sought to cap the fees associations may charge for providing required documents. The bill would have required associations to provide specific information to prospective purchasers, including financial statements and insurance details, within 30 days of a written request. This copying fee would have been capped at $375, with an additional $100 rush fee if records were needed within 72 hours. CAI opposes any effort to restrict an association’s authority to recoup the reasonable costs associated with document production and distribution.

Status: Both bills successfully died in committee.

HB 5069 – Noxious Weeds

ILAC opposed this legislation, which sought to disallow associations from requiring unit owners to seek permission to remove weeds designated as noxious or exotic by the Illinois Department of Natural Resources from their properties. This legislation conflicts with CAI’s public policy on sustainable landscaping practices by removing an association’s ability to regulate landscaping practices. CAI supports the ability for communities to establish rules that govern landscaping practices for common areas and exclusive use property. CAI also supports communities adopting best practices recommended for sustainable landscaping and encourages association boards to fairly evaluate homeowners’ requests to convert to or utilize sustainable landscaping on their exclusive-use property while protecting an association’s assets.

Status: Bill successfully died in committee.

SB 1914 & HB 5585 – Condo Board Regulations

ILAC opposed these bills, which would have mandated the use of an association’s reserve funds be allocated to help cover certain owner expenses. The proposed amendment stated that if a condo board’s negligence led to a unit owner’s loss of use, a portion of the association’s reserve funds must be allocated to help cover the owner’s expenses, if the owner did not carry Category D loss-of-use insurance.

The legislation failed to define what would constitute board negligence and did not include safeguards to protect an association’s reserve fund obligations. Reserve funds are intended to finance the repair and replacement of common elements and ensure the long-term financial stability of the community. Diverting reserve funds for purposes unrelated to those obligations could undermine an association’s ability to meet future capital repair and replacement needs.

Status: Both bills successfully died in committee.

HB 4524 – Solar Energy

ILAC opposed this bill which addressed the installation, use, or operation of solar energy devices by homeowners within community associations. CAI supports environmental and energy efficiency policies that recognize and respect the governance and contractual obligations of community association residents as the best mechanism to enact sustainable environmental policies and opposes government and interest group efforts to override community policy or deed restrictions on single interest issues.

HB 4524 explicitly stated that community associations may not enforce, or attempt to enforce any restriction, covenant, bylaw, regulation, lease stipulation, or other rule that directly or indirectly restricts, prohibits, or imposes unreasonable conditions on the installation, use, or operation of a plug-in solar energy system. Under this bill, no fees, insurance requirements, or procedural functions could have been enforced and any restriction, covenant, bylaw, regulation or other rule would have been void and unenforceable.

Status: Bills successfully died in committee.

HB 5495, HB 4338, HB 5618, HB 5079 & SB 1820 – Ombudsperson and Dispute Resolution

ILAC opposed these bills, all of which addressed dispute resolution within community associations. CAI recognizes the need for and supports the use of fair alternative dispute resolution mechanisms to resolve disputes arising in community associations, particularly in appropriate cases where such measures can facilitate efficient and equitable resolution.

HB 5495 would have required associations to provide unit owners access to financial records from the last seven years upon request. This would have included income statements, balance sheets, check registers, budget variations, and tax returns. The bill also would have allowed the Condominium and Common Interest Community Ombudsperson to investigate unresolved complaints after initial dispute resolution efforts. The Department of Financial and Professional Regulation would also have been required to issue binding written determinations in response to unresolved complaints, with compliance required within seven days of violation notice, and the ability to impose penalties up to $5,000 per violation per day for noncompliance.

HB 4338 sought to amend the Condominium and Common Interest Community Ombudsperson Act. It would have established a requirement for condo or common interest community board members to complete a certified governance and fiduciary training program within 12 months of election/appointment, to be provided online for free or low-cost. A public database of enforcement actions against licensed community association managers and management companies, listing details like violation type and compliance status would also have been created. A voluntary Condominium Mediation and Arbitration Program would also have been established, allowing disputes about governance, access to information, and rule enforcement to be resolved before court litigation.

HB 5618 would have authorized the Illinois Attorney General to investigate, make findings, and litigate on behalf of unit owners of common interest community associations and condominiums, specifically for rights violations by their governing boards under Illinois law or the association’s governing documents, and granted rulemaking authority to the Attorney General to implement these provisions.

HB 5079 similarly would have amended the Common Interest Community Association Act and the Condominium Property Act to grant the Illinois Department of Financial and Professional Regulation (IDFPR) the authority to investigate complaints, make findings, and recommend enforcement actions on behalf of unit owners against governing boards who violate owners’ rights under Illinois law or association bylaws.

SB 1820 sought to amend the Condominium Property Act to require the Condominium and Common Interest Community Ombudsperson to serve as the mediator or arbitrator for all mediation or arbitration conducted under the Act. It would have applied specifically to disputes without a specific monetary value or those valued at $10,000 or less, except for disputes involving the levying/collection of assessments or association rule violations. The condominium association would have been permitted to require the disputants to bear the mediation or arbitration costs.

Status: All bills successfully died in committee.

HB 4617 – Common Interest Community Registration

ILAC opposed this legislation, which sought to establish the Office of Common Interest Community Registration within the Illinois Department of Financial and Professional Regulation. It would have repealed Condominium and Common Interest Community Ombudsperson Act, shifting oversight and enforcement to this new office.

Under this legislation, all common interest community associations in the state would have been required to register, pay a $3 fee per unit, and submit governing documents, board member details, and management company information, to this office. The office would have been empowered to investigate complaints from unit owners against boards within 60 days, issue fines, remove/suspend board members, appoint interim property managers, revoke management licenses for violations, and refer criminal and civil rights violations to appropriate authorities.

Status: Successfully died in committee.

CAI SOUGHT AMENDMENTS TO THE BELOW BILLS

CAI works with legislators and other key stakeholders to seek amendments to legislation to help it better align with CAI’s public policy positions and help community associations and their residents thrive.

HB 67 – Vehicle Regulations

ILAC sought amendments to this legislation, which would have amended the Common Interest Community Association Act and the Condominium Property Act to prevent associations from classifying marked law enforcement or firefighter vehicles as commercial vehicles. This classification may not be used to impose restrictive provisions as long as the vehicle does not exceed 12,000 pounds. The bill underwent several amendments to include the definition of police officer as defined in the Law Enforcement Officer-Worn Body Camera Act, as well as definition of firefighter as defined in the Illinois Municipal Code. ILAC supported this legislation with successful amendments passed in the House.

Status: Successfully passed both chambers of the legislature. Awaiting Governor action.

HB 5449 – Condo CI Assn-Disclosure Info

ILAC sought amendments to this legislation, which originally would have required a 75% approval vote of unit owners for any fee increase more than 10%. The original language also would have required boards to provide a website by January 2028 that unit owners could access information about the board and association meetings, agenda, and minutes of the last meeting. The board would have also had to distribute the association’s financial data to members on a quarterly basis. ILAC worked with legislative sponsors to successfully remove the fee cap, as well as amend the quarterly notice requirement to annual. ILAC supported this legislation with successful amendments passed in the House.

Status: Passed Both Houses of the Legislature. Awaiting Governor action.

SB 2785 – Utility-Shared Roof/Townhouse

ILAC sought amendments to this legislation, which aimed to prevent association deed and covenants from prohibiting installation of solar energy systems on residential buildings. CAI opposes blanket requirements that limits associations’ ability to govern according to their unique needs. Additional concerns with the original language included its failure to adequately account for shared townhouse roofs. While the bill applied certain restrictions to buildings over 60 feet or those with shared roofs, townhouses were excluded from some of these provisions. ILAC worked alongside legislative authors on amendments which would have allowed associations to adopt reasonable standards to protect common assets, such as roof integrity or community safety, as long as these standards did not impede the installation of solar systems. ILAC supported this legislation with successful amendments, however it did not pass out of the Senate.

Status: Died in committee.

HB 5402/SB 3104 – Plug-In Solar Energy Systems

ILAC sought amendments to these companion bills which would have permitted installation of solar energy systems on shared roofs of residential buildings if the system is located entirely within the roof section owned by a property owner or if all sharing property owners consent. The legislation would have allowed an association to set standards and approve vendors for these installations, requiring them to act in the collective interest and not delay decisions for more than 60 days.

CAI supports environmental and energy efficiency policies that recognize and respect the governance and contractual obligations of community association residents as the best mechanism to enact sustainable environmental policies and opposes government and interest group efforts to override community policy or deed restrictions on single interest issues. CAI ILAC engaged with the legislation sponsors in both House and Senate, as well as participated in Zoom meetings with other stakeholders on potential amendments. Time ran out before the bill was ready for an agreed amendment and did not pass out of committee.

Status: Died in committee.

CAI MONITORED THE BELOW BILLS

CAI and its LACs monitor legislation with the potential to impact those living and working in community associations across their state, as well as legislation that may indirectly or unintentionally impact community associations.

HB 4826 – IDFPR-Continuing Education

ILAC monitored this legislation, which impacts community association managers (and other licensed professionals) by restricting the types of continuing education courses that can count toward license renewal. CAI encourages the self-regulation of the community management profession through professional certification and designation programs developed by industry professionals for the profession.

Status: Passed Both Houses of the Legislature.

HB 4670 – Common Interest Association Definition

ILAC monitored this legislation, which sought to amend the Common Interest Community Association Act in Illinois to explicitly include “property owners’ associations,” as defined in the bill. Under this legislation, unit owners with easement rights in such association would have been obligated to pay for the maintenance, improvement, insurance premiums, or real estate taxes of the affected property—unless the original developer’s documents specifically exempted them.

Status: Died in committee.

HB 4674 – Regulation of Backyard Chickens

ILAC monitored this legislation, which would have amended the Garden Act to ensure individuals the right to keep backyard chickens on their residential property, subject to municipal regulations. Municipalities would have been permitted to regulate aspects such as sanitation, enclosure standards, and predator-proofing but not able to require neighbor consent for keeping chickens or cultivating vegetable gardens.

In alignment with CAI’s public policy on Government Regulations of Community Associations, the bill specified that it would not limit the authority of homeowners’ associations, condominium associations, or properties subject to restrictive covenants to regulate or prohibit backyard chickens or vegetable gardens according to their governing documents. CAI believes that governance should occur at the lowest possible level. Legislatures and regulatory agencies should acknowledge the right of self-determination by owners who elect volunteers and have a vested interest in their own communities.

Status: Died in committee.

SB 3104 – Solar Energy

ILAC monitored this legislation, which addresses the use of solar energy systems. The bill specifically preserved a community association’s ability to adopt or enforce rule that reasonably restrict or prohibit the installation or use of plug-in solar energy systems with a maximum power output to a receptacle outlet of 391 watts or less. Associations would still have been permitted to prohibit these systems in or on common areas or elements of the building. The legislation would not have applied to pre-existing documents unless they are renewed or amended after the effective date.

Status: Died in committee.

HB 5626, SB 640, HB 5765 & SB 4200 – Housing Affordability

ILAC monitored several housing affordability proposals during the 2026 legislative session due to concerns that certain provisions could negatively impact community associations. HB 5626 and SB 640 were introduced as part of the Governor’s housing affordability initiative, while HB 5765 and SB 4200 were advanced by the Illinois Municipal League as an alternative approach. ILAC engaged with the sponsor of SB 640 to communicate concerns regarding language that could have undermined community association governance and property rights. Specifically, a provision would have allowed for the development of additional middle housing in areas that are often designated as common elements or common areas within condominium and homeowners associations. ILAC highlighted the practical and legal challenges associated with applying such requirements to community associations, and SB 640 ultimately did not advance before adjournment.

Status: Died in committee.

Get Involved with CAI’s Advocacy Work through Your Local Chapter!

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