Bill > SB1703

This bill amends the Common Interest Community Association Act and the Condominium Property Act to require common interest associations and condominium associations to conduct and update reserve studies every five years. A reserve study is defined as a comprehensive analysis of the reserves needed for future major maintenance, repairs, and replacements of common areas. The study must identify major shared components or significant infrastructure, including structural, mechanical, electrical, and plumbing components with a replacement cost exceeding $10,000, and must detail the normal useful life, estimated remaining useful life, estimated maintenance or replacement costs, and recommended annual reserve amounts for each component. Associations must have a reserve study conducted by a qualified person or entity with expertise in the specific components being evaluated. In the event of a unit resale, the most recent reserve study must be made available to prospective purchasers upon request. Associations with 15 or fewer units are exempt from the reserve study requirement, though they must still comply with existing budgeting and reserve requirements. The bill provides a timeline for initial studies, requiring associations to conduct their first reserve study on or before January 1, 2028, and then update it every five years thereafter. This legislation aims to help community associations better plan for and fund long-term maintenance and infrastructure improvements.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1703&GAID=18&DocTypeID=SB&SessionID=114&GA=104