Illinois Condo Act Guide

Illinois Condominium Property Act: A Practical Guide for Boards and Owners

The Illinois Condominium Property Act governs how condominium associations operate, how boards make decisions, and what rights unit owners have. Here's what you need to know.

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Overview

What the Illinois Condominium Property Act covers

The Illinois Condominium Property Act (765 ILCS 605) is the primary statute governing condominium associations in Illinois. It establishes the legal framework for how condominiums are created, how associations are governed, and what rights and obligations unit owners and boards have.

For HOA boards, understanding the ICPA is essential. Boards that operate outside the statute's requirements expose themselves to legal challenges, personal liability, and loss of authority. For unit owners, the ICPA is the foundation of your rights as a property owner.

This guide covers the key provisions every board member and unit owner should know. It is not legal advice — for complex situations, consult a licensed Illinois HOA attorney.

Disclaimer: This guide is provided for general informational purposes only and does not constitute legal advice. Laws change and individual circumstances vary. For questions specific to your association, consult a licensed Illinois attorney experienced in community association law.

Quick Reference Index

Find any ICPA topic by section number

Use this index to quickly locate the section of the Illinois Condominium Property Act that covers a specific topic. Each entry links to the relevant statutory section. Source: CAI Illinois ILAC Quick Find Index

Board Governance

Board Powers and DutiesSection 18(a)(2)
Election of Board — Number, Term & EligibilitySection 18(a)(1)
Board Member Conflict of InterestSection 18(a)(16)
Board RemovalSection 18(a)(4)
Officers' Terms (Two Years)Section 18(a)(11)
Open MeetingsSection 18(a)(9)
Meeting NoticeSection 18(a)(8)(i)
ProxiesSection 18(a)(18)
Absentee BallotsSection 4.1(c)

Assessments & Finances

Assessment IncreaseSection 18(a)(8)
Additions and Alterations to AssessmentsSection 18(a)(8)(v)
Special Assessments — Meetings & NoticeSection 18(a)(8)(i)
Budgets & ReservesSection 9(c)
ForeclosuresSection 9
Late ChargesSection 9(g)(1)
Accounting — Unit Owner's Right to Statement of AccountSection 18(i)

Unit Owner Rights & Records

Association Records — Unit Owner's Right to InspectSection 19
Homeowner Documents (Entitled To)Section 19
Condominium DisclosuresSection 22.1
Association — Purchase or Sale of UnitsSection 18(b)(13)(iii)

Insurance & Property

InsuranceSection 12
Insurance — Duty of Owner to Submit Proof to BoardSection 12(h)
Parking SpacesSection 2(s)

Governing Documents & Structure

Amendment of Declaration (Procedure)Section 27
Association — Governed by General Not For Profit ActSection 18.3
Master AssociationSections 18.5, 18.6 and 18.7
Homeowner AssociationsSections 18.5, 18.6 and 18.7
Townhome AssociationsSections 18.5, 18.6 and 18.7

Additional Legislation for Community Associations

Illinois Condominium Property ActCommon Interest Community Association ActCommunity Association Manager Licensing and Disciplinary ActGeneral Not for Profit ActTransfer Fee Covenant ActHomeowners' Energy Policy Statement Act

Section references are drawn from the CAI Illinois ILAC Quick Find Index. Always verify against the current statute at ILGA.gov.

Key Provisions

Five areas every board member must understand

Board Authority and Governance

  • Boards have authority to adopt rules and regulations for the property
  • Board members must act in the best interest of the association
  • Meetings must be open to all unit owners (with limited exceptions)
  • Board must provide advance notice of meetings (typically 10 days)
  • Executive sessions permitted for litigation, personnel, and certain contracts

Assessments and Special Assessments

  • Boards may levy regular assessments without unit owner vote
  • Special assessments over a certain threshold require unit owner approval
  • Unpaid assessments create a lien on the unit
  • Boards may pursue collections through the courts
  • Assessment records must be available to all unit owners

Reserve Funds

  • Associations must maintain adequate reserve funds
  • Reserve studies are strongly recommended (required for some buildings)
  • Boards may not waive reserve funding without unit owner vote
  • Reserve funds must be held in a separate account
  • Annual disclosure of reserve fund status required

Unit Owner Rights

  • Right to inspect association records (with reasonable notice)
  • Right to attend and speak at board meetings
  • Right to vote on major decisions (elections, budget, amendments)
  • Right to receive annual financial disclosure
  • Right to petition for special meetings

Management Agreements

  • Management agreements must be disclosed to unit owners
  • Boards may terminate management agreements with proper notice
  • Managers must maintain proper licensing (IDFPR)
  • Conflicts of interest must be disclosed
  • Management fees and compensation must be transparent
Common Violations

Five ICPA violations that create the most risk

Inadequate Reserve Funding

Many associations underfund reserves to keep assessments low. This creates deferred maintenance problems and often leads to special assessments that could have been avoided.

Improper Meeting Notice

Failing to provide adequate advance notice of board meetings is one of the most common procedural violations. It exposes the board to challenges on decisions made at those meetings.

Undisclosed Conflicts of Interest

Board members who have financial relationships with vendors must disclose those relationships. Failure to do so can void contracts and expose board members to personal liability.

Improper Collections Process

Pursuing collections without following the proper statutory process — including proper notice and opportunity to cure — can invalidate the lien and expose the association to counterclaims.

Selective Rule Enforcement

Enforcing rules against some owners but not others creates fair housing exposure and undermines the board's authority. Rules must be enforced consistently.

Frequently Asked Questions

Common questions about the Illinois Condo Act

Last updated: June 2026View the Illinois Condominium Property Act on ILGA.gov →

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Altus manages associations in full compliance with the Illinois Condominium Property Act. Request a proposal to see how we can help your board.

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