The 2026 Illinois HOA Compliance Guide

Why Illinois HOAs Are Different

Illinois does not regulate every shared-ownership community under one statute. The central law for qualifying non-condominium HOAs is the Common Interest Community Association Act, 765 ILCS 160 (commonly called CICAA).

CICAA defines a common interest community as real estate other than a condominium or cooperative where ownership obligates a person to pay for common-area maintenance, improvements, insurance premiums, or real estate taxes described in a declaration and administered by an association. Condominiums are governed primarily by the Illinois Condominium Property Act, not CICAA.

An HOA may also be organized under the General Not For Profit Corporation Act of 1986, which can supplement its governing rules — and which determines the most important CICAA exemption.

Illinois HOA authority hierarchy

Most Illinois HOA boards must work across:

1. Applicable federal law.
2. CICAA, if the association is subject to it.
3. Other Illinois statutes, including corporate, solar-energy, native landscaping, and Ombudsperson laws.
4. The recorded declaration and amendments.
5. Articles of incorporation, bylaws, or operating agreement.
6. Validly adopted rules, resolutions, and policies.

The board should identify the source of authority and every required process before acting. A policy cannot override CICAA or create authority absent from the declaration and applicable law.

Does CICAA Apply?

CICAA generally applies to Illinois common interest community associations, but Section 1-75 creates important exemptions.

A common interest community association organized under the General Not For Profit Corporation Act is exempt from CICAA when it has either:

• 10 units or fewer; or
• Annual budgeted assessments of $100,000 or less.

The association may affirmatively elect CICAA coverage by a majority of its directors or members.

Additional limited exemptions apply to certain communities that cannot use courts or arbitration to collect or enforce assessments, fines, or similar levies, and to communities with 10 units or fewer or annual budgeted assessments of $50,000 or less. Even an exempt community must provide notice in a manner and at a time that allows members to participate.

1. Open Meetings and Board Governance

Board-meeting frequency and notice

CICAA requires the board to meet at least four times annually. Unless an exemption applies, members must receive notice of board meetings at least 48 hours before the meeting through a prescribed delivery method or permitted conspicuous posting.

Board meetings concerning adoption of the proposed annual budget, regular assessments, or a separate or special assessment generally require notice through a prescribed delivery method 10 to 60 days before the meeting, subject to other statutory provisions.

Open board meetings

Board meetings must be open to unit owners. The board may close a portion of a noticed meeting or meet separately to discuss:

• Pending, probable, or imminent litigation.
• Third-party contracts.
• Appointment, employment, engagement, or dismissal of employees, contractors, agents, or service providers.
• Interviews of potential employees, contractors, agents, or service providers.
• Rule violations.
• An owner’s unpaid share of common expenses.
• Consultation with association legal counsel.

Any vote on these matters must occur in a meeting or portion of a meeting open to members.

The board must reserve part of each board meeting for member comments. The board controls the duration and order of that comment period.

Membership meetings

The membership must hold an annual meeting. Notice of any membership meeting must state the time, place, and purpose and be delivered no fewer than 10 and no more than 30 days before the meeting.

Unless the community instruments set a lower threshold, 20% of the membership constitutes a quorum. Special membership meetings may be called by the president, board, 20% of the membership, or another method authorized by the community instruments.

Meeting workflow

1. Determine whether the gathering is a member or board meeting.
2. Confirm whether a CICAA exemption applies.
3. Send or post the correct notice using the correct deadline.
4. Add a member-comment period to every board agenda.
5. Close discussion only for a listed statutory subject.
6. Return to open session for every vote.
7. Record motions, votes, recusals, and actions in minutes.
8. Preserve board minutes for at least seven years.

2. Records Inspection and Document Retention

CICAA Section 1-30 requires boards to maintain and make specified records available for examination and copying at convenient weekday hours by members, mortgagees, and authorized agents or attorneys.

Required records include:

• Recorded declarations, community instruments, covenants, bylaws, amendments, articles, annual reports, and rules.
• Detailed chronological receipts and expenditures.
• Itemized common-area maintenance and repair expenses.
• Contracts, leases, and other board agreements.
• Board-meeting minutes maintained for at least seven years.
• Ballots and proxies maintained for at least one year and available with a written proper-purpose statement.
• Other qualifying corporate records available under the General Not For Profit Corporation Act.
• Any reserve study.

When a written records request is made to the board or its agent, failure to provide the record or respond within 30 days is deemed a denial. A reasonable retrieval and copying fee may be charged.

If an owner prevails in an action over properly requested records and the court finds the failure resulted from board acts or omissions, the owner is entitled to reasonable attorney fees and costs.

Retention schedule

Records-request workflow

1. Date-stamp the written request.
2. Identify requested records and whether a proper-purpose statement is required.
3. Preserve responsive records.
4. Respond within 30 days, even if production requires scheduling or clarification.
5. Charge only a reasonable retrieval and copying fee.
6. Log what was produced, withheld, unavailable, or scheduled.

3. Violations, Hearings, and Fines

CICAA gives the board power, after notice and an opportunity to be heard, to levy and collect reasonable fines for violations of the declaration, bylaws, operating agreement, and association rules.

Defensible enforcement workflow

1. Verify authority. Identify the exact enforceable provision in the governing documents.
2. Confirm the facts. Preserve dated photographs, reports, correspondence, and prior decisions.
3. Check consistency. Review comparable prior violations.
4. Send notice. State the alleged violation, evidence, cure requested, possible fine, and hearing process.
5. Provide an opportunity to be heard. Follow all governing-document and policy requirements.
6. Discuss confidentially if appropriate. Rule violations may be discussed in closed session.
7. Vote in open session. The final vote must occur openly.
8. Send a written result. Explain the decision, fine, cure expectations, and appeal rights.
9. Track enforcement consistently.

Collection-related management fees cannot simply be added to an owner’s common-expense share. Apart from attorney fees and court or arbitration costs, CICAA requires that qualifying manager fees relate to collection costs, appear in the management contract, and be specifically authorized by the declaration, bylaws, or operating agreement.

4. Architectural Review and Solar

Architectural authority usually begins in the recorded declaration and community instruments. The board should identify the precise authority, standards, decision-maker, and deadline before approving or denying work.

Defensible architectural-review process

1. Use a standard application covering plans, dimensions, materials, colors, permits, and contractor information.
2. Confirm the controlling community-instrument provision.
3. Apply written standards and prior decisions consistently.
4. Record conflicts and recusals.
5. Decide within every applicable deadline.
6. Send a written decision identifying standards and conditions.
7. Preserve the complete application and decision.

Solar-energy systems

The Illinois Homeowners’ Energy Policy Statement Act, 765 ILCS 165, prohibits an association from adopting or exercising power that prohibits or effectively prohibits installation of a solar-energy system, subject to statutory inapplicability provisions.

Key operational rules:

• The association cannot require specific technology such as solar shingles instead of panels.
• It may determine system configuration on a roof face, but cannot prohibit installation on any roof face or reduce production by more than 10%.
• It must adopt a written energy policy statement within 90 days after receiving a request for one or a solar application.
• It generally must process a solar application within 30 days.
• If no policy existed when the application arrived, the application generally must be processed within 120 days.
• The association cannot charge a solar-application fee higher than fees for other property-change applications.
• A policy or application failure can allow installation after written notice and a 10-business-day cure opportunity.

The Act does not apply to buildings over 60 feet tall or buildings with a statutorily defined shared roof. Solar denials and restrictive conditions deserve counsel review.

Native landscaping

The Illinois Homeowners’ Native Landscaping Act, 765 ILCS 167, prohibits associations from banning an owner or resident from planting Illinois native species on the person’s lawn when statutory maintenance conditions are satisfied.

Associations may adopt reasonable rules for planned, intentional, and maintained native landscapes, but those rules cannot impair proper maintenance and care or impose height restrictions. The Act does not apply to common areas, association-owned property, or other property the resident or owner lacks authority to landscape.

5. Assessments, Budgets, and Reserves

Annual budget process

Under CICAA Section 1-45, each member must receive the proposed annual budget at least 30 and no more than 60 days before board adoption. The budget must identify portions intended for reserves, capital expenditures or repairs, and real estate taxes.

The board must provide members a reasonably detailed summary of prior-year receipts, common expenses, and reserves, and must also make an itemized accounting available or provide a consolidated annual independent audit report of all fund accounts.

Associations with 100 or more units must use generally accepted accounting principles when fulfilling CICAA accounting obligations.

The 115% budget-challenge threshold

If an adopted budget or separate assessment makes current-year regular and separate assessments exceed 115% of the preceding year’s total:

• Members holding 20% of association votes may petition within 14 days after board action.
• The association must call a member meeting within 30 days after receiving the petition.
• The budget or assessment remains ratified unless a majority of all member votes rejects it.

Emergency or legally mandated separate assessments have special treatment. Separate assessments for additions and alterations not included in the annual budget require approval by a simple majority of all members at a meeting called for that purpose.

Reserve planning

CICAA recognizes reserves, requires proposed budgets to identify reserve amounts, and makes reserve studies inspectable. It does not prescribe a universal reserve-study schedule or minimum reserve contribution for common interest communities.

A practical reserve program should:

1. Inventory association-maintained components.
2. Estimate useful life, remaining life, and replacement cost.
3. Update assumptions regularly.
4. Identify reserve funding in the annual budget.
5. Keep reserve funds distinct and carefully tracked.
6. Disclose material funding gaps and document board decisions.

Management companies holding reserve funds must follow statutory account-segregation requirements. Associations with 30 or more units must maintain fidelity insurance covering persons who control or disburse association funds.

6. Collections, Liens, and Enforcement Remedies

CICAA authorizes assessments and reasonable fines but does not create a comprehensive standalone assessment-lien and foreclosure system comparable to some other states’ planned-community statutes.

The board must identify collection authority and remedies in:

• The recorded declaration and community instruments.
• CICAA.
• Applicable Illinois corporate and property law.
• The Illinois Code of Civil Procedure and other applicable statutes.

Illinois law can provide associations with court remedies related to unpaid common expenses, including possession-related remedies in qualifying circumstances. Those procedures require exact notices, pleadings, and statutory compliance. The board should not call every collection action a foreclosure or assume that a condominium collection procedure automatically applies to a CICAA association.

Practical collection workflow

1. Verify the owner ledger and every charge.
2. Confirm the declaration’s assessment, interest, late-fee, lien, attorney-fee, and remedy provisions.
3. Apply a board-approved written policy consistently.
4. Send clear notices and preserve delivery evidence.
5. Offer a documented payment-plan contact process.
6. Have Illinois counsel validate any lien, lawsuit, possession action, or foreclosure remedy.
7. Record board authorization and preserve the complete collection file.

7. Elections, Voting, and Board Vacancies

CICAA requires board elections at least once every 24 months. Board members must be elected from the membership and may not serve terms longer than four years, although they may succeed themselves.

Vacancy and removal rules

• A vacancy may be filled by a two-thirds vote of remaining directors until the next annual meeting.
• Members holding 20% of votes may request a meeting to fill the vacancy for the remaining term; the meeting must be called within 30 days after the petition is filed.
• Two-thirds of the membership may remove a director at a duly called special meeting.

Voting methods and proxies

• Voting may occur by written proxy, association-issued ballot, delivery methods authorized by the community instruments, or acceptable technological means.
• Proxies generally expire after 11 months unless the instruments or proxy provide otherwise.
• Votes cast through permitted methods count toward quorum.

Electronic elections

Members may not vote by proxy in board elections under CICAA — the prohibition applies to all board elections, not only electronic ones. If the association adopts electronic-election rules, voting instructions must be distributed at least 10 and no more than 30 days before the election meeting.

If no election occurs when required by the bylaws or within a reasonable period not exceeding 90 days, members holding 20% of votes may seek court action to compel compliance, subject to statutory conditions.

Election checklist

• Confirm CICAA applicability, voter eligibility, quorum, nominations, and terms.
• Send membership-meeting notice 10 to 30 days in advance.
• Follow the correct proxy, ballot, or electronic-voting procedure.
• Preserve ballots and proxies for at least one year.
• Document challenges, tallies, and results.
• Fill vacancies using the required vote and petition process.

8. Complaints and Ombudsperson Procedures

Associations subject to CICAA must comply with the Condominium and Common Interest Community Ombudsperson Act, 765 ILCS 615.

Except for exempt common interest community associations, each association must adopt a written owner-complaint policy and make it available on request. The policy must include:

• A sample complaint form.
• Delivery instructions.
• The association’s timeline and manner for making final determinations.
• A requirement that the final determination be written, issued within 180 days after the original complaint, and clearly marked final.

An owner seeking Ombudsperson assistance generally must first use the association complaint policy, receive a final adverse decision, and file the request within 30 days after receiving it. If the association does not provide a final response, an owner may potentially request assistance after at least 90 days, subject to statutory requirements.

Complaint workflow

1. Maintain and publish the written complaint policy and form.
2. Date-stamp every complaint.
3. Identify the alleged CICAA or governing-document issue.
4. Investigate and preserve relevant records.
5. Issue a written final decision within 180 days.
6. Mark the decision clearly as final.
7. Maintain the complaint and response record.

9. Vendor Management and Contracts

CICAA contains a specific insider-contract procedure. An association generally may not enter a contract with a current board member or a business in which a board member or immediate family member owns at least 25% unless:

• Members receive notice of the intent within 20 days after the decision.
• Members receive an opportunity to petition for an approval or disapproval election.
• A petition signed by 20% of the membership is filed within 20 days after notice.
• The election is held within 30 days after the petition.

Contract discussions may occur in closed session, but the final vote must occur openly.

Vendor checklist

• Define scope, service levels, price, term, renewal, and termination rights.
• Compare bids for material projects and document the selection.
• Verify licenses, insurance, references, and permits.
• Identify insider interests before approval.
• Follow the member-notice and petition process for covered insider contracts.
• Require written change orders.
• Track warranties, insurance certificates, deadlines, and performance.
• Preserve contracts as association records.

Illinois HOA Compliance Checklist

Applicability

• Confirmed the community is not a condominium or cooperative
• Documented CICAA applicability or exemption based on unit count and assessments
• Documented any affirmative election into CICAA

Meetings

• Held at least four board meetings this year
• Held the annual membership meeting
• Sent ordinary board notice at least 48 hours in advance
• Used the 10-to-60-day notice period for covered budget and assessment meetings
• Reserved a member-comment period at each board meeting
• Took all final votes in open session

Records

• Maintained board minutes for at least seven years
• Maintained ballots and proxies for at least one year
• Responded to written records requests within 30 days
• Organized contracts, financial records, governing documents, and reserve studies

Enforcement

• Verified authority for every rule and fine in the governing documents
• Provided notice and an opportunity to be heard before imposing a fine
• Voted on enforcement action in open session
• Documented comparable cases and decisions

Financial

• Sent the proposed budget 30 to 60 days before adoption
• Identified reserves and capital expenditures in the budget
• Provided prior-year financial reporting to members
• Reviewed reserve needs and updated funding assumptions
• Maintained fidelity insurance if the association has 30 or more units

Administration

• Maintained a written complaint policy and sample form
• Issued complaint decisions within 180 days and marked them final
• Followed solar-policy and application deadlines
• Reviewed landscape rules for compliance with the Native Landscaping Act
• Followed insider-contract notice and petition procedures where required
• Verified vendor conflicts, contracts, and insurance

Frequently Asked Questions