CONDO-COM INT-RESERVE STUDY
SB1703 would require common interest community associations and condominium associations in Illinois to conduct a reserve study and update it every five years. A reserve study is defined as an analysis of the reserves needed for future major maintenance, repairs, and replacements of common elements or shared infrastructure. The bill sets transition rules for associations that already have a study on or after January 1, 2024, and for those that do not, requiring a study by January 1, 2028. It also allows an association to prepare a study internally if it compiles information from a qualified person or entity with relevant expertise.
The bill also requires that, when a unit is resold, the most recent reserve study must be made available to a prospective purchaser upon request. For condominium resales, the bill amends the disclosure list in the Condominium Property Act to add the reserve study to the documents already required to be provided, alongside items such as liens, budgets, financial statements, insurance information, and pending litigation. Similar disclosure and reserve-study requirements are added to the Common Interest Community Association Act and to master associations under the Condominium Property Act.
SB1703 would amend the Common Interest Community Association Act and the Condominium Property Act to impose a recurring reserve-planning requirement on associations that maintain major shared components or significant infrastructure. It would create a statutory obligation to assess long-term repair and replacement needs, which could affect association budgeting, reserve funding, and governance practices. The bill also expands resale disclosure obligations by requiring delivery of the most recent reserve study to prospective buyers, increasing transparency for purchasers and potentially affecting unit valuations and transaction due diligence. Associations with 15 or fewer units are exempt from the reserve-study mandate, though they must still follow existing budgeting and reserve rules elsewhere in law or in their governing documents.
Based on the bill text and the absence of recorded committee testimony or votes, the available record suggests the measure is framed as a consumer-protection and financial-planning bill rather than a controversial structural overhaul. Its stated purpose is to improve reserve adequacy and disclosure for buyers and owners in common-interest communities. The overall tone of the proposal is preventative and administrative, emphasizing planning, transparency, and long-term maintenance rather than enforcement or penalties.
The main likely points of contention are the cost and administrative burden of requiring periodic reserve studies, especially for smaller associations or those with limited budgets. The bill addresses that concern in part by exempting associations with 15 or fewer units, but it still requires those boards to comply with existing reserve and budgeting rules. Another possible issue is the scope of what counts as “major shared components or significant infrastructure,” which includes a broad range of items such as roads, lighting, landscaping, pools, and accessory buildings if the replacement cost exceeds $10,000. Some stakeholders may also question whether internal preparation of a study is sufficiently rigorous, while others may support the flexibility it provides. No committee debate or vote history is provided, so no specific opposing or supporting groups are identified in the record.