HB4618 104TH GENERAL ASSEMBLY

LRB104 15627 JRC 28794 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4618

Introduced 2/3/2026, by Rep. Dagmara Avelar

SYNOPSIS AS INTRODUCED:

765 ILCS 160/1-30
765 ILCS 160/1-40

Provides that the Act may be referred to as the Common Interest Community Transparency Act. Amends the Common Interest Community Act. Provides which association records must be provided to a unit owner upon request. Specifies records that may not be disclosed. Provides that a reasonable fee may be charged by the board for the actual cost of retrieving and copying records, but no fee may be charged for access to or downloading of electronic records stored on a website or other accessible electronic file. Prohibits a board from requiring a unit owner to sign a nondisclosure or confidentiality agreement concerning actions of the board or association. Changes the board's notice requirements notifying unit members of meetings of the association or the board. Requires the board to offer video conferencing for those unit owners who physically cannot attend a meeting. Provides that a unit owner may choose a proxy to attend a meeting and represent the unit owner but must identify the proxy to the board via a prescribed delivery method at least one day before the meeting. Allows a unit owner or the owner's invitee or proxy to record board meetings.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. This Act may be referred to as the Common Interest Community Transparency Act.

Section 5. Findings. The General Assembly finds that a lack of transparency by boards in common interest communities leads to poor management, embezzlement, abuse of unit owners, unequal enforcement, special treatment, theft and other problems. It further finds that unit owners are forced to struggle with and are often forced to litigate against their own boards and property managers to access the documents of the association that the unit owners are entitled to see. The General Assembly further finds that boards and property managers often charge excessive fees to unit owners to review records and documents of their association.

Section 10. The Common Interest Community Association Act is amended by changing Sections 1-30 and 1-40 as follows:

(765 ILCS 160/1-30)

Sec. 1-30. Board duties and obligations; records.

(a) The board shall meet at least 4 times annually.

(b) A common interest community association may not enter into a contract with a current board member, or with a corporation, limited liability company, or partnership in which a board member or a member of his or her immediate family has 25% or more interest, unless notice of intent to enter into the contract is given to members within 20 days after a decision is made to enter into the contract and the members are afforded an opportunity by filing a petition, signed by 20% of the membership, for an election to approve or disapprove the contract; such petition shall be filed within 20 days after such notice and such election shall be held within 30 days after filing the petition. For purposes of this subsection, a board member's immediate family means the board member's spouse, parents, siblings, and children.

(c) The bylaws or operating agreement shall provide for the maintenance, repair, and replacement of the common areas and payments therefor, including the method of approving payment vouchers.

(d) (Blank).

(e) The association may engage the services of a manager or management company.

(f) The association shall have one class of membership unless the declaration, bylaws, or operating agreement provide otherwise; however, this subsection (f) shall not be construed to limit the operation of subsection (c) of Section 1-20 of this Act.

(g) The board shall have the power, after notice and an opportunity to be heard, to levy and collect reasonable fines from members or unit owners for violations of the declaration, bylaws, operating agreement, and rules and regulations of the common interest community association.

(h) Other than attorney's fees and court or arbitration costs, no fees pertaining to the collection of a member's or unit owner's financial obligation to the association, including fees charged by a manager or managing agent, shall be added to and deemed a part of a member's or unit owner's respective share of the common expenses unless: (i) the managing agent fees relate to the costs to collect common expenses for the association; (ii) the fees are set forth in a contract between the managing agent and the association; and (iii) the authority to add the management fees to a member's or unit owner's respective share of the common expenses is specifically stated in the declaration, bylaws, or operating agreement of the association.

(i) Board records.

(1) The board shall maintain the following records of the association on a website accessible to unit owners and their authorized agents and make them available for examination and copying at convenient hours of weekdays or at a mutually convenient time and location within 30 miles of the location of the common interest community by any member or unit owner in a common interest community subject to the exemptions in subsection (m) authority of the board, their mortgagees, and their duly authorized agents or attorneys:

(i) Copies of the recorded declaration, other community instruments, other duly recorded covenants and bylaws and any amendments, articles of incorporation, articles of organization, annual reports, and any rules and regulations adopted by the board shall be available. Prior to the organization of the board, the developer shall maintain and make available the records set forth in this paragraph (i) for examination and copying. An association's managing agent must deliver all of the association's original books and records to the association immediately upon termination of its management relationship with the association or upon such other demand as is made by the Board. An association managing agent may keep copies of the association records at its own expense.

(ii) All financial records for the last 7 years in a spreadsheet format produced by Excel or similar software in a manner that allows unit owners to download and manipulate or organize the data using Excel or similar software. Financial records include, but are not limited to, the income statement, balance sheet, check register, current budget with monthly variation, detailed records of receipts and expenditures affecting the operation and administration of the association, reserve account details, tax returns and other appropriate accounting records. Detailed and accurate records in chronological order of the receipts and expenditures affecting the common areas, specifying and itemizing the maintenance and repair expenses of the common areas and any other expenses incurred, and copies of all contracts, leases, or other agreements entered into by the board shall be maintained.

(iii) The minutes of all meetings of the board which shall be maintained for not less than 7 years.

(iv) With a written statement of a proper purpose, ballots and proxies related thereto, if any, for any election held for the board and for any other matters voted on by the members, which shall be maintained for not less than one year.

(v) With a written statement of a proper purpose, such other records of the board as are available for inspection by members of a not-for-profit corporation pursuant to Section 107.75 of the General Not For Profit Corporation Act of 1986 shall be maintained.

(vi) With respect to units owned by a land trust, a living trust, or other legal entity, the trustee, officer, or manager of the entity may designate, in writing, a person to cast votes on behalf of the member or unit owner and a designation shall remain in effect until a subsequent document is filed with the association.

(vii) Any reserve study.

(2) Where a request for records under this subsection is made in writing to the board or its agent, failure to provide the requested record or to respond within 30 days shall be deemed a denial by the board.

(3) A reasonable fee may be charged by the board for the actual cost of retrieving and copying records properly requested but may not charge any fee for access to or downloading by a unit owner of electronic records stored on a website or other accessible electronic file. A unit owner has the right to request these records by photocopying or through electronic means.

(4) If the board fails to provide records properly requested under paragraph (1) of this subsection (i) within the time period provided in that paragraph (1), the member may seek appropriate relief and shall be entitled to an award of reasonable attorney's fees and costs if the member prevails and the court finds that such failure is due to the acts or omissions of the board of managers or the board of directors.

(j) The board shall have standing and capacity to act in a representative capacity in relation to matters involving the common areas or more than one unit, on behalf of the members or unit owners as their interests may appear.

(k) The board may contract with the highway commissioner of a road district in which the association is located, if the association comprises 50% of the population or greater of the township or road district, to furnish materials related to the maintenance or repair of roads. Any such purchases shall be included in the board's finance report as outlined in Section 1-45.

(l) A board may not require a unit owner to sign a nondisclosure or confidentiality agreement concerning the board or association.

(m) Records provided under this Section may not be used for commercial purposes other than to sell or purchases properties in the association and may be withheld from inspection and copying to the extent that the records concern:

(i) personnel and medical records relating to specific individuals;

(ii) contracts, leases, and other commercial transactions to purchase or provide goods or services currently being negotiated;

(iii) attorney-client privileged details of current or potential litigation or mediation, arbitration, or administrative proceedings;

(iv) attorney-client privileged details of current or potential matters involving federal, State, or local administrative or other formal proceedings before a governmental tribunal for enforcement of the governing documents;

(v) legal advice or communications for current or potential matters that are otherwise protected by the attorney-client privilege or the attorney work product doctrine, including communications with the managing agent or other agent of the association;

(vi) information the disclosure of which would violate a court order or law;

(vii) records of an executive session of the board;

(viii) the personal phone number of a member if requested to be held confidential by the member; and

(ix) security access information provided to the association for emergency purposes.

(Source: P.A. 102-921, eff. 5-27-22; 103-486, eff. 1-1-24.)

(765 ILCS 160/1-40)

Sec. 1-40. Meetings.

(a) Notice of any membership meeting shall be given detailing the time, place, and purpose of such meeting no less than 14 10 and no more than 30 days prior to the meeting through a prescribed delivery method, or if requested by a unit owner, by first class mail by the United States Postal Service.

(b) Meetings.

(1) Twenty percent of the membership shall constitute a quorum, unless the community instruments indicate a lesser amount.

(2) The membership shall hold an annual meeting. The board of directors may be elected at the annual meeting.

(3) Special meetings of the board may be called by the president, by 25% of the members of the board, or by any other method that is prescribed in the community instruments. Special meetings of the membership may be called by the president, the board, 20% of the membership, or any other method that is prescribed in the community instruments.

(4) The Except to the extent otherwise provided by this Act, the board shall give the members notice of all board meetings at least 14 days 48 hours prior to the meeting by sending notice by using a prescribed delivery method and or by posting copies of notices of meetings in entranceways, elevators, or other conspicuous places in the common areas of the common interest community at least 48 hours prior to the meeting except where there is no common entranceway for 7 or more units, the board may designate one or more locations in the proximity of these units where the notices of meetings shall be posted. The board shall give members notice of any board meeting, through a prescribed delivery method, concerning the adoption of (i) the proposed annual budget, (ii) regular assessments, or (iii) a separate or special assessment within 14 10 to 60 days prior to the meeting, unless otherwise provided in Section 1-45 (a) or any other provision of this Act.

(5) Meetings of the board shall be open to any unit owner or a person specifically invited to the meeting by the unit owner. A , except that the board may close any portion of a noticed meeting or meet separately from a noticed meeting: (i) to discuss litigation when an action against or on behalf of the particular association has been filed and is pending in a court or administrative tribunal, or when the common interest community association finds that such an action is probable or imminent, (ii) to discuss third party contracts or information regarding appointment, employment, engagement, or dismissal of an employee, independent contractor, agent, or other provider of goods and services, (iii) to interview a potential employee, independent contractor, agent, or other provider of goods and services, (iv) to discuss violations of rules and regulations of the association, (v) to discuss a member's or unit owner's unpaid share of common expenses, or (vi) to consult with the association's legal counsel. Any vote on these matters shall be taken at a meeting or portion thereof open to any member.

(6) The board must reserve a portion of the meeting of the board for comments by members; provided, however, the duration and meeting order for the member comment period is within the sole discretion of the board.

(7) The board must offer video conferencing for unit owners who physically cannot attend a meeting. A unit owner may choose a proxy to attend a meeting and represent the owner but must identify the proxy to the board via a prescribed delivery method at least one day before the meeting. All meetings may be recorded by any unit owner or by the owner's invitee or proxy.

(Source: P.A. 99-567, eff. 1-1-17.)