Bill > HB2563

This bill establishes new requirements for common interest community associations regarding reserve studies, which are detailed analyses of future maintenance and replacement costs for shared infrastructure and components. Specifically, the bill requires associations with major shared components or significant infrastructure (defined as structural, mechanical, electrical, or plumbing elements with a replacement cost exceeding $10,000) to conduct and update a reserve study every five years. These reserve studies must identify each component's useful life, estimated replacement cost, and the annual reserve amount needed for future maintenance. Associations must have their first reserve study completed by January 1, 2028, and must be conducted by a qualified person or entity with expertise in infrastructure assessment. In the event of a unit resale, the most recent reserve study must be made available to prospective purchasers upon request. The bill provides an exemption for associations with 15 or fewer units, though these associations must still comply with existing budgeting and reserve requirements. By mandating these studies, the legislation aims to help community associations better plan for and fund long-term maintenance and infrastructure replacement, potentially reducing the risk of unexpected large expenses and special assessments.

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https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2563&GAID=18&DocTypeID=HB&SessionID=114&GA=104