What do the 2025 and 2026 Illinois HOA and condo law changes require of volunteer boards?

By OurHOA · General information · Revised October 27, 2026

Illinois HOA and condo law changes for boards: a written collection policy before suing, an owner website by 2028, emailed financials and parking rules.

Part of the HOA board handbook: new state laws for boards.

The short answer

Illinois passed three acts in 2026 that change routine board work, and all three take effect January 1, 2027: - SB 3527 (Public Act 104-0734, approved July 31, 2026) bars an association from taking legal action to collect unpaid assessments unless it has adopted, and follows, a written collection policy. - HB 5449 (Public Act 104-0797, approved August 7, 2026) requires a website for owners by January 1, 2028 and requires the annual financial report to go out electronically to owners who have agreed to email delivery. - HB 67 (Public Act 104-0580, approved July 24, 2026) stops associations from treating a marked police or fire vehicle assigned to an officer or firefighter as a banned commercial vehicle. Two older rules still catch boards off guard. Since January 1, 2025, every condominium board has needed a written accessible parking policy (SB 2740, Public Act 103-0916). And SB 1383 (Public Act 104-0377, effective August 15, 2025) kept the state condo and HOA ombudsperson program alive until January 1, 2029, along with the duty to keep a written complaint policy. Rules vary with your declaration and bylaws, and this guide is education, not legal advice. Have the association's attorney review any policy before the board adopts it.

First, find out which Illinois act covers you

Illinois splits community associations between two statutes. Condominiums fall under the Condominium Property Act (765 ILCS 605). Most townhouse and single-family HOAs fall under the Common Interest Community Association Act (765 ILCS 160). The second act has a size exemption that matters for small HOAs. Under 765 ILCS 160/1-75(a), an association organized under the General Not For Profit Corporation Act that has 10 or fewer units, or annual budgeted assessments of $100,000 or less, is exempt from the whole act unless a majority of its directors or members votes to opt in. Sixty homes paying $1,200 a year is $72,000 in budgeted assessments, which puts that HOA under the line. Ninety homes at $1,500 is $135,000, which does not. The Condominium Property Act has no matching exemption, so every condo association in Illinois gets the condo changes below. An exempt HOA still has to follow its own declaration and Illinois corporation law. A collection policy is good practice for it anyway, because a judge will ask how the board treats every late owner.

A written collection policy before any lawsuit

Starting January 1, 2027, neither the association nor anyone who buys or is assigned its debt may take legal action to collect common expenses unless it has adopted, and follows, a written policy on unpaid assessments. The rule is in new subsection (j) of 765 ILCS 160/1-45 for HOAs and a new subsection of 765 ILCS 605/18.4 for condos, and it applies even if the declaration says something different. The policy must state at least: 1. The due date for assessments and when an account becomes delinquent. 2. Any late fees and interest the association may charge. 3. Any returned-check charge. 4. When, if ever, an owner may get a payment plan, and the minimum terms of that plan. 5. The dollar amount or length of time before an account goes to an attorney. 6. How payments are applied to a delinquent account. 7. The remedies available under the governing documents and Illinois law. The same act adds the collection policy to the resale disclosures a buyer can demand: item (10) of 765 ILCS 605/22.1(a) for condos and item (8) of 765 ILCS 160/1-35(d) for HOAs. Put it in the resale packet the day the board adopts it. The words "and follows" are the trap. A board that writes a policy and then skips steps for a neighbor, or waives fees for a friend, has handed the delinquent owner a defense. Our guide on the past-due dues timeline for boards walks through the reminder letters that should sit inside the policy.

Sample motion and policy wording

A motion the secretary can put in the minutes: "Moved that the board adopt the Assessment Collection Policy dated [date], reviewed by association counsel, effective January 1, 2027; that the policy be emailed to all owners who have consented to electronic delivery and mailed to all others within 14 days; and that it be added to the resale disclosure packet." Sample language for item 4, the payment plan: "An owner whose account is delinquent may request a payment plan in writing before the account is referred to counsel. The board will offer a plan of up to [six] monthly installments to any owner who has not defaulted on a plan in the past [24] months. Current assessments must be paid on time during the plan. If a plan payment is more than [15] days late, the plan ends and collection resumes under this policy." The numbers in brackets are choices for the board, not figures from the statute. Pick terms you will actually give to every owner who asks.

A website by 2028 and annual financials by email

HB 5449 adds the same sentence to both acts (765 ILCS 160/1-30(l) and a new subsection of 765 ILCS 605/18.4): the board must provide a website, no later than January 1, 2028, that owners can reach on the internet and that includes information about board and membership meetings and the approved minutes of board meetings. The law does not say the site must be public, so a password-protected owner portal appears to qualify. Confirm that reading with counsel. The act also changes how the annual financial report goes out. For HOAs, the reasonably detailed summary of receipts, common expenses and reserves under 765 ILCS 160/1-45(b) must be sent electronically to every member who has given the association an email address and authorized electronic delivery. For condos, 765 ILCS 605/18(a)(7) now does the same for the annual itemized accounting, which must include receipts and expenses. Two things in the bill as introduced did not survive: quarterly emailed financial statements, and a 75 percent owner vote for any fee increase over 10 percent. If an owner cites either one, the final act has neither. Our guide on setting up a document library owners can search covers what else is worth posting next to the minutes.

Parking: accessible spaces and first responder vehicles

Condo boards first. Section 18.12 of the Condominium Property Act, added by SB 2740 and in force since January 1, 2025, requires a written policy to reasonably accommodate an owner with a disability who needs accessible parking. The policy must explain how to submit a request and how long the board takes to review it, which can be no more than 45 days. Existing condos had 90 days after the effective date to adopt one. Newer condos get 90 days after the first owner board is elected. If the association does not control a suitable space, the board must make reasonable efforts to help owners work out an arrangement among themselves. Any owner may ask for a copy of the policy. For both condos and HOAs, HB 67 adds 765 ILCS 605/18.14 and 765 ILCS 160/1-73. From January 1, 2027, an association may not call a marked law enforcement vehicle assigned to an officer, or a marked fire vehicle assigned to a firefighter, a commercial vehicle and restrict it under a covenant or rule, as long as the vehicle weighs no more than 12,000 pounds. A rule that does is void. Check the commercial vehicle and towing language in your rules before an officer's squad car gets a violation letter.

The complaint policy the ombudsperson law requires

The Condominium and Common Interest Community Ombudsperson Act (765 ILCS 615) was set to expire January 1, 2026. SB 1383 moved that date to January 1, 2029. Every condo association, and every HOA not exempt under Section 1-75, must still keep the written complaint policy required by Section 35 of that act. It must include: - a sample form owners can use to file a complaint, - how complaints are delivered to the association, - the association's timeline and method for deciding them, and - a rule that the final decision is in writing, issued within 180 days after the association received the complaint, and clearly marked "final." Many boards adopted this policy in 2018 and never opened it again. Check that the form still exists and that decisions go out within 180 days.

A timeline for the next 14 months

- November 2026: confirm which act covers the association and, for an HOA, whether the budget is over $100,000. Send the current delinquency practice to counsel and ask for a draft collection policy. - December 2026: adopt the collection policy at an open meeting, effective January 1, 2027. Send it to all owners and add it to the resale packet. Pause any new lawsuit filings until the policy is in place. - January 2027: review commercial vehicle rules against the first responder exemption. Condo boards should confirm the accessible parking policy exists and states a review period of 45 days or less. - Spring 2027: run an email consent drive so the annual financial report can go out electronically. Review the complaint policy and form. - By the end of 2027: launch the owner website with meeting information and approved minutes, and set a routine to post new minutes after each approval. The mistakes boards make: filing suit in 2027 with no written policy, adopting a policy the manager does not follow, guessing at the HOA exemption without checking the budget, and starting the website in December 2027.

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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