HB5617 104TH GENERAL ASSEMBLY

LRB104 16272 JRC 29656 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5617

Introduced 2/13/2026, by Rep. Margaret A. DeLaRosa

SYNOPSIS AS INTRODUCED:

765 ILCS 160/1-30

Amends the Common Interest Community Act. Specifies which records of a common interest community association must be provided to a unit owner upon request. Specifies records that may not be disclosed. Requires a board to maintain a secure website accessible only to unit owners and their authorized agents so that they may download the association's records in an electronic format at no cost. Provides that a board has no obligation to produce electronic records otherwise if it maintains the accessible, secure website. Provides that if the unit owner requests the records to be delivered in paper and the association has a photocopy machine available where the records are maintained, it must provide unit owners with copies on request during the inspection if the entire request is limited to no more than 25 pages. Provides that the board may charge up to 25 cents per page for copies made on the association's photocopier if more than 25 pages. Provides that a board must allow a unit owner to use a portable device capable of scanning or taking photographs to make an electronic copy of the official records at no cost in lieu of the board's providing the unit owner with a copy of records. Provides that the board may impose fees to cover the costs of providing paper copies of the records if the time spent retrieving and copying the records exceeds one-half hour and if the personnel costs do not exceed $20 per hour and the personnel costs may not be charged for records requests that result in the copying of 25 or fewer pages. Authorizes the board to adopt reasonable written rules governing the frequency, time, location, notice, records to be inspected, and manner of inspections with some limitations. Provides that the board must make available to unit owners or their authorized agents on a quarterly basis on its secure website any transactions that the board has entered into, to include, but not be limited to, contracts, signed proposals, proof of payments, and final inspections of parcels in the association. Makes other changes.

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 5. 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 secure website accessible only 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) The board has no obligation to produce records in an electronic format if the records are available to the unit owner or the owner's authorized agent on a secure website maintained by the board. The board may not charge any fee for access to or downloading by a unit owner of electronic records stored on the secure website. If the unit owner requests the records to be delivered in paper, the following apply to such a request:

(A) If the association has a photocopy machine available where the records are maintained, it must provide unit owners with copies on request during the inspection if the entire request is limited to no more than 25 pages. A board must allow a unit owner or authorized agent to use a portable device, including a smartphone, tablet, portable scanner, or any other technology capable of scanning or taking photographs, to make an electronic copy of the official records in lieu of the board's providing the unit owner or authorized agent with a copy of such records. The board may not charge a fee to a unit owner or authorized agent for the use of a portable device.

(B) The board may adopt reasonable written rules governing the frequency, time, location, notice, records to be inspected, and manner of inspections, but may not require a unit owner to demonstrate any proper purpose for the inspection, state any reason for the inspection, or limit an owner's right to inspect records to less than one 8-hour business day per month.

(C) The board may impose fees to cover the costs of providing paper copies of the records, including the costs of copying and the costs required for personnel to retrieve and copy the records if the time spent retrieving and copying the records exceeds one-half hour and if the personnel costs do not exceed $20 per hour. Personnel costs may not be charged for records requests that result in the copying of 25 or fewer pages. The board may charge up to 25 cents per page for copies made on the association's photocopier if more than 25 pages. If the board does not have a photocopy machine available where the records are kept, or if the records requested to be copied exceed 25 pages in length, the association may have copies made by an outside duplicating service and may charge the actual cost of copying as supported by the vendor invoice. A reasonable fee may be charged by the board for the cost of retrieving and copying records properly requested.

(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) 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.

(m) The board must make available to unit owners or their authorized agents on a quarterly basis on its secure website any transactions that the board has entered into, to include, but not be limited to, contracts, signed proposals, proof of payments, and final inspections of parcels in the association.

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