David Babakaiff
Written by David Babakaiff · Co-Founder, VanPlex | 25+ Years BC Construction Last reviewed: October 2026

United States | Illinois

Illinois HOA and Condo Law for Small Associations

Illinois has one law for condominiums, the Condominium Property Act (765 ILCS 605), and another for most other associations, the Common Interest Community Association Act (765 ILCS 160). The Foundation for Community Association Research, an industry group, estimates 19,850 associations in Illinois in 2025, the fourth most of any state. The common interest act has a rule that matters most to small owners: it does not apply to an association of 10 units or less unless the association chooses it.

The short answer

  • A non-condo association of 10 units or less, or with budgeted assessments of $100,000 or less a year, is exempt from the Common Interest Community Association Act unless a majority of its directors or members elect to be covered (765 ILCS 160/1-75).
  • Condo associations follow the Condominium Property Act at any size: open board meetings, at least 4 board meetings a year, and the budget to owners at least 25 days before adoption.
  • If assessments rise above 115% of last year's, owners with 20% of the votes can call a meeting, and a majority of the total votes can reject the budget.
  • Condo budgets must include reasonable reserves, unless owners waive them by two-thirds of the total votes.
  • Records must be produced within 10 business days of a written request, and resale information within 10 business days, for no more than $375.

Which law applies

Condo (765 ILCS 605)Other associations (765 ILCS 160)
Small exemptionNone10 units or less, or $100,000 or less in budgeted assessments, unless the association opts in
Member meeting notice10 to 30 days10 to 30 days
Quorum20% unless the bylaws say otherwise20% unless the instruments set less
Board meeting notice48 hours, posted48 hours
Board termsNo more than 2 yearsNo more than 4 years; elections at least every 24 months
Budget to membersAt least 25 days before adoption30 to 60 days before adoption
Spending not in the budget on additionsTwo-thirds of total votesSimple majority of total members

Board and meetings

  • Condo boards are elected from the unit owners, at least one-third of terms expire each year, and the board meets at least 4 times a year (605/18).
  • Board meetings are open to owners, with closed sessions only for litigation, hiring, rule violations, an owner's unpaid share and legal advice. Any vote on those subjects happens in the open.
  • Directors may join by phone or video, and owners may record the open parts of board meetings.
  • Under the common interest act, the board serves without pay unless the instruments say otherwise, and every board meeting has a member comment period.
  • Proxies are valid for 11 months unless the documents or the proxy say otherwise.

Budgets, reserves and assessments

  • The 115% rule: if all regular and separate assessments for the year would exceed 115% of last year's, owners with 20% of the votes can petition (within 21 days for condos, 14 days otherwise) for a meeting within 30 days. The budget stands unless a majority of the total votes reject it.
  • Assessments for emergencies or required by law need no owner approval.
  • Condo reserves: every budget must include reasonable reserves, based on repair and replacement costs, useful life and any reserve study. An association whose instruments set no reserve requirement can waive them by two-thirds of the total votes, and must disclose the waiver to buyers in bold.
  • Unpaid assessments, fines, interest, late charges and attorney fees are a lien on the unit, which the board can foreclose like a mortgage. The board can also bring an eviction action against a defaulting owner or tenant.

Insurance, records and resale

  • Condo property insurance at full insurable replacement cost, and general liability insurance of at least $1,000,000 (605/12).
  • Common interest associations of 30 or more units carry fidelity insurance.
  • Records: produced within 10 business days of a written request, or it counts as a denial. An owner who wins in court recovers attorney fees.
  • Resale: the board gives the seller the required information within 10 business days of a written request, for a fee of no more than $375.
  • A paid community association manager must be 21 or older, a US citizen or permanent resident, have no listed fraud convictions, and know the Act (605/18.7).
  • The declaration or bylaws may require mediation or arbitration of disputes worth $10,000 or less, other than collecting assessments.

Read in the Illinois Compiled Statutes on the General Assembly's site on 31 October 2026. Public Acts 104-797 and 104-734 change several of these sections on January 1, 2027; this page states the text in force before them.

Common questions

Does the Illinois Common Interest Community Association Act apply to small HOAs? +

Not to an association of 10 units or less, or with budgeted assessments of $100,000 or less a year, unless a majority of its directors or members choose to be covered.

Does a small Illinois condo follow the Condominium Property Act? +

Yes. The condo act has no size exemption, so a two-unit condo follows its rules on the board, meetings, budgets and reserves.

What is the 115% rule in Illinois? +

If a new budget or separate assessment would raise the year's total above 115% of last year's, owners with 20% of the votes can petition for a meeting, and a majority of the total votes can reject it.

Are reserves required for Illinois condos? +

Budgets must include reasonable reserves, unless the instruments set no reserve requirement and owners waive them by two-thirds of the total votes.

How fast must an Illinois association show records? +

Within 10 business days of a written request. Silence past that counts as a denial.

How much can an Illinois condo charge for resale documents? +

No more than $375, delivered within 10 business days of a written request.

Can Illinois board members be paid? +

Under the common interest act, board members serve without pay unless the community instruments say otherwise. Condo bylaws must state any board pay.

Read next

Official Sources

General information, not tax or legal advice. Tax rules and legal requirements change and depend on your specific situation. Confirm current rules with a tax professional and an attorney licensed in your state before making a decision.

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