2023 Legal Updates Impacting Community Associations Presented By KSN Attorneys

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Explore the latest legislative updates impacting community associations in Illinois, including amendments to acts like ICPA and CICCA. Key changes include requirements for maintaining reserve study records and insurance disclosure practices. Discover how HB4158, HB5167, and HB5246 affect community association operations and information sharing with prospective buyers.

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2023 Legal Updates Impacting Community Associations Presented By KSN Attorneys Kerry Bartell & Pamela Park www.ksnlaw.com

2023 Illinois Community Association Legislative Updates Illinois Condominium Property Act (ICPA) Condominium and Common Interest Community Ombudsperson Act (CICCA) Illinois Condominium and Common Interest Community Ombudsperson Act Community Association Manager Licensing and Disciplinary Act Property Tax Code

HB4158 Record of reserve study Enacted, effective immediately. Amends Common Interest Community Association Act (CICAA) & Illinois Condominium Property Act (ILCPA). Requires the Board to maintain a record of any reserve study and extends the repeal date of the Ombudsperson Act to January 1, 2024.

HB5167 HB5167 Insurance disclosure Insurance disclosure Enacted, effective July 1, 2023. Amends State Finance Act, Community Association Manager Licensing and Disciplinary Act, etc. Removes language that provides that a community association manager/firm must provide a current certificate of fidelity insurance and a current certificate of general liability and errors and omissions to all associations no later than 10 days following the renewal date of the insurance. Provides instead that the manager shall provide a current certificate of fidelity insurance and a current certificate of general liability and errors and omissions.

HB5246 HB5246 Document request, deadlines, and fees Document request, deadlines, and fees Several states require sellers in condominium, homeowner association, or townhome community associations to disclose information to prospective buyers. These disclosures can include various documents including the association s: Assessment status Rules and regulations Budget Reserve funding Status of pending lawsuits Insurance coverage Enacted, effective January 1, 2023.

HB5246 HB5246 Document request, deadlines, and fees cont d Document request, deadlines, and fees cont d Amends Section 22.1 of ILCPA. Provides that the principal officer of the unit owner s association shall furnish specified information relevant to the Condominium when requested to do so in writing. Information requests (in writing) must be completed within 10 business days of the request. The fee covering the direct out-of-pocket cost of providing and copying the requested information may not exceed $375. An association may charge an additional $100 for rush service completed within 72 hours.

425 ILCS 60 425 ILCS 60 Smoke detectors and batteries Smoke detectors and batteries Effective January 1, 2023. The Smoke Detector Act applies to every dwelling unit, which includes condominium units. For dwelling units in existence on July 1, 1988, except as provided below, the smoke detectors required in dwelling units may be either: battery powered, provided the battery is a self-contained, non-removable, long-term battery, or wired into the structure s AC power line, and need not be interconnected. The battery requirements apply to battery-powered smoke detectors that 1) are in existence and exceed ten years from the date of their being manufactured, 2) fail to respond to operability tests or otherwise malfunction, or 3) are newly installed. For dwelling units newly constructed, reconstructed, or substantially remolded after December 31, 1987, the smoke alarms shall be permanently wired into the building s electrical system, and if more than one smoke alarm is required, the smoke alarms shall be wired so that the initiation of one smoke alarm will initiate all the smoke alarms in the dwelling unit. For any dwelling units newly constructed, reconstructed, or substantially remodeled after January 1, 2011, smoke alarms permanently wired into the building s electrical system must also maintain an alternative backup power source, such as batteries or an emergency generator. Note that the requirements do not apply to fire alarms, smoke detectors, or smoke alarms that are electronically connected as part of a centrally monitored or supervised alarm system. Nor do they apply to smoke detectors, smoke alarms that use a low- power radio frequency signal, or Wi-Fi to send and receive notifications from the internet.

Property tax Code, community association Property tax Code, community association property tax appeals property tax appeals Effective January 1, 2023. Amends the Illinois Property Tax Code which affects both Condominium Associations and Common Interest Communities. Pursuant to Section 16-160 of the Illinois Property Tax Code, an Association can now file an appeal to the Property Tax Appeal Board on behalf of the entire Association or several owners. An Association can file an appeal on any claim that was filed after the 1999 assessment year.

Group tax appeal explained Group tax appeal explained All (or many) of an association s units file a single property tax appeal. Illinois law allows a Board to file a single appeal on behalf all the Association s unit owners. Benefits: County Assessors prefer one appeal, over dozens, or even hundreds, of owners filing separately. Administratively easier to process for everyone. County Assessor has a duty to uniformly assess all units within an association. The group appeal enables the County Assessor to meet this obligation.

2022 Illinois Community Association Case Law Summary Granville Tower Condo. Ass n v. Escobar, 2022 IL App (1st) 200362 Addressed that special assessments must be paid even in a foreclosure purchase of a unit. Holtgren v. 260 Jamie Lane Condominium Association, 2022 IL App (2d) 210440-U Addressed developer turnover process and assessments on unfinished units. The Village of Downers Grove v. Village of Square III Condo. Ass n, 2022 Ill. App. 2d 210098 (Ill. App. Ct. 2022) Association must comply with local fire prevention/protection codes and ordinances. RSUI Indemnity Company v. Fireside Terrace Condominium Association Inc. et al., case number 1:22-cv-00014 Insured vs. insured insurance coverage exclusion for association board of directors.

2022 Illinois Community Association Case Law Summary cont d 4043 S Drexel Condominium Association v. Burke, No. 1-21-0666 (Ill. App. Ct. Sept 6, 2022) Properly call meetings, conduct elections, and amend the declaration. Morgan s Orchard Lake Homeowners Association v. Morgan, No 3-22-0006 (Ill. App. Ct. Sept 27, 2022) Proper budget approval/adoption and changes to assessment rate. Cambridge Mutual Fire Insurance Company v. Bell & Arthur Condominium Association, No. 18 C 05951 (N.D Ill. Oct. 21, 2022) Understanding limits of Insurance coverage for the association and board of directors. Channon v. Westward Management, Inc. No. 128040 (Ill. Nov. 28, 2022) Association document requests and fees.