HB2563ham001 104TH GENERAL ASSEMBLY

Rep. Terra Costa Howard

Filed: 3/12/2025

10400HB2563ham001 LRB104 09919 JRC 23621 a

AMENDMENT TO HOUSE BILL 2563

AMENDMENT NO. ______. Amend House Bill 2563 as follows:

on page 6, line 6, after "22.1" by inserting "and by adding Section 18.13"; and

on page 27, immediately below line 3 by inserting the following:

"(765 ILCS 605/18.13 new)

Sec. 18.13. Reserve Study.

(a) As used in this Section:

"Major shared components or significant infrastructure" means structural, mechanical, electrical, and plumbing components of the common elements and any other components that are the responsibility of the association to maintain, restore, repair, and replace, or infrastructure, including, but not limited to, roads, street lighting, hardscape, landscape, ponds and lakes, water features, pools, and accessory buildings, if applicable, with a restoration or replacement cost exceeding $10,000, which are capital expenses as identified in the federal tax code and generally accepted accounting principles.

"Reserve study" means an analysis of the reserves required for future major maintenance, repairs, and replacements of the common elements that:

(1) identifies each structural, mechanical, electrical, and plumbing component of the common elements and any other components that are the responsibility of the association to maintain, repair, and replace;

(2) states the normal useful life and the estimated remaining useful life of each identified component;

(3) states the estimated cost of maintenance, repair, or replacement of each identified component; and

(4) states the estimated annual reserve amount necessary to accomplish any identified future maintenance, repair, or replacement.

(b) Any association with major shared components or significant infrastructure shall cause a reserve study to be conducted and updated in accordance with this Section.

(c) Any association with major shared components or significant infrastructure that has had a reserve study conducted on or after January 1, 2024, shall have an updated reserve study conducted within 5 years after the date the reserve study was conducted, and at least every 5 years thereafter, for purposes of assessing the condition of and planning for maintenance, repair, and replacement of the common elements.

(d) Any association with major shared components or significant infrastructure that has not had a reserve study conducted on or after January 1, 2024, shall require that a reserve study be conducted on or before January 1, 2028, and shall update the study every 5 years for purposes of assessing the condition of and planning for maintenance, repair, and replacement of the common elements.

(e) The reserve study and any update to the reserve study shall be conducted by a qualified person, association, organization, or business entity that is knowledgeable about the major shared components or significant infrastructure that will be the subject of the reserve study. A qualified person, association, organization, or business entity is one that has experience and knowledge about the normal useful life, function, performance, condition, maintenance, repair, and replacement of any one or more of the major shared components or significant infrastructure that will be the subject of the reserve study, as well as the related expenses. The reserve study is not required to be conducted by a single person, association, organization, or business entity. An association may internally prepare a reserve study provided that such a reserve study compiles information from a qualified person, association, organization, or business entity.

(f) In the event of resale of any unit in the association, a copy of the most recent reserve study, if any, shall be made available to any prospective purchaser, upon request.

(g) Any association with 15 or fewer units is exempt from the requirements of this Section; however, the board must still comply with budgeting and reserve requirements as provided elsewhere in the Act or in the community instruments.".