Homeowners associations (HOAs) manage many planned communities in Illinois. Various local, state, and federal regulations as well as governing documents oversee HOAs in Illinois.
Who Regulates HOAs in Illinois?
In Illinois, HOAs are regulated by Illinois Common Interest Community Association Act found in Chapter 765, Act 160 in the Illinois Statute. This act applies to all associations other than condos that contain members who contribute to common elements regulated by governing documents.
Every HOA has its own governing documents. These documents typically include: Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and Restrictions, and other rules and regulations.
HOAs in Illinois may also be subject to applicable federal laws such as:
HOAs may also be subject to certain state laws such as:
- Illinois Condominium Property Act
- Illinois Human Rights Act
- Illinois Condominium and Common Interest Community Ombudsperson Act
- Illinois General Not for Profit Corporation Act of 1986
- Illinois Community Association Manager Licensing and Disciplinary Act
How to Find HOA Regulations in Illinois
HOA governing documents are not public records in Illinois. Only members or unit owners of the HOA may request to view the governing documents.
Some information can be found on the Illinois Secretary of State Corporation/LLC Search webpage such as the type of business, duration, and officers of the HOA.
Additionally, reports and forms filed with the Illinois Secretary of State are public. These records can be requested by email, fax, or online for a fee.
HOA Powers in Illinois
In Illinois, an HOA has the power to:
- Regulate common areas
- Collect charges to maintain and operate the common areas
- Levy reasonable fines
- Foreclose on homes for unpaid lien
Moreover, an HOA’s governing documents can grant added powers such as restrictions on membership, parking, fencing, and exterior paint colors.
Can an HOA Impose Fines on a Homeowner in Illinois?
In Illinois, an HOA can impose fines on a homeowner for violating its rules. Before fines can be imposed, the HOA must give the homeowner a notice and an opportunity to be heard. Specific fee types and amounts are determined by the HOA governing documents.
An HOA cannot fine a homeowner for (or generally prohibit) any of the following:
- Displaying the American flag or military flag so long as the flag is displayed in a manner consistent with federal flag display law
- Installing a flagpole to display the American flag or military flag
- Installing satellite dishes and antennas
- Attaching religious objects to the front door of the unit
- Accommodating religious practices
An HOA’s governing documents may include reasonable regulations and rules about the placement, manner, and display of any of the items listed above.
Can an HOA Take a Homeowner’s House in Illinois?
HOAs that manage condos can take a homeowner’s house. These HOAs have the power to place a lien on a property when the owner neglects to pay their dues. If a lien goes unresolved, the HOA can foreclose on the house.
All other HOA powers about foreclosure can be found in the governing documents.
An HOA can evict a homeowner due to late payment of charges, assessments, and other fees imposed by the HOA. HOAs are also allowed to evict tenants for similar grounds as a homeowner. Tenants and owners must receive a notice of demand before bringing an eviction lawsuit to either party.
Every HOA business type has the same procedures in regard to eviction proceedings. Additionally, provisions may be added to the governing documents.
Can an HOA Enter a Homeowner’s Property in Illinois?
In Illinois, there is no provision in the law that allows an HOA to enter a homeowner’s property. However, most governing documents contain a provision allowing an HOA to enter one’s home as reasonably necessary to maintain units, common elements, or shared utilities.
Units are the spaces in and around the house that are collectively owned by the HOA, such as balconies. Shared utilities may include water or sewage that are provided directly through the HOA.
Except in the case of an emergency, the HOA must generally give prior notice before entering the property. Typically, an HOA will give 1-2 weeks’ notice, but notice requirements are determined by the governing documents.
Where Do Homeowners File Complaints Against Their HOA in Illinois?
The venue for filing a complaint against an HOA in Illinois depends on the complaint.
For complaints concerning HOA fees, a homeowner can file a complaint with the Illinois Department of Financial and Professional Regulation, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Under the Fair Debt Collection Practices Act, homeowners may also file in state or federal court within one year of the violation date.
If a homeowner feels they are a victim of housing discrimination, they can file a complaint with the Illinois Department of Financial and Professional Regulation, the U.S. Department of Urban Housing, or file a private lawsuit in Illinois state or federal court.
Otherwise, a homeowner with any other complaints can bring a claim in state court in the appropriate county.
Joining and Leaving an HOA in Illinois
In Illinois, there is no statutory provision about joining and leaving an HOA. The relationship between homeowners and the HOA as well as membership rules are determined by the HOA governing documents. These documents should be presented at the closing for a new owner’s home purchase.
There are two types of HOAs that influence joining and leaving clauses in the governing documents:
- Mandatory HOAs. When a person buys a home, they automatically become a member required to abide by any HOA rules listed in the governing documents. This usually includes that a homeowner is not able to leave the HOA freely.
- Voluntary HOAs. When a person buys a home, membership is a choice for each homeowner. If they choose to become a member, they may leave at any time by stopping their payments with the HOA.
To leave a mandatory HOA, a homeowner can sell their house or try to petition the HOA to have their home removed. However, there is no guarantee the petition will be granted.
How to Dissolve an HOA in Illinois
The process for dissolution of an HOA in Illinois may be set forth in the HOA’s governing documents. If it is not, the board of directors must propose a dissolution to members at a meeting.
A vote by members at the meeting needs to be at least ⅔ in support of dissolution. Then, a plan for dissolution handling assets and liabilities must be drafted by the board of directors and approved by at least ⅔ of the HOA members.
Once the dissolution has been authorized, an Articles of Dissolution must be filed with the Illinois Secretary of State. Upon filing, the HOA is considered dissolved.
Sources
- 1 765 Ill. Comp. Stat. 130/1-30
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(i) Board records. (1) The board shall maintain the following records of the association and make them available for examination and copying at convenient hours of weekdays by any member or unit owner in a common interest community subject to the 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…
Source Link - 2 765 Ill. Comp. Stat. 130/1-30
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(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. (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…
Source Link - 3 765 Ill. Comp. Stat. 605/9
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(h) A lien for common expenses shall be in favor of the members of the board of managers and their successors in office and shall be for the benefit of all other unit owners. Notice of the lien may be recorded by the board of managers, or if the developer is the manager or has a majority of seats on the board of managers and the manager or board of managers fails to do so, any unit owner may record notice of the lien. Upon the recording of such notice the lien may be foreclosed by an action brought in the name of the board of managers in the same manner as a mortgage of real property.
Source Link - 4 765 Ill. Comp. Stat. 605/1-70
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… a board may not prohibit the display of the American flag or a military flag, or both, on or within the limited common areas and facilities of a unit owner or on the immediately adjacent exterior of the building in which the unit of a unit owner is located… A board may not prohibit the installation of a flagpole for the display of the American flag or a military flag, or both, on or within the limited common areas and facilities of a unit owner…
Source Link - 5 Over-the-Air Reception Devices Rule (OTARD Rule)
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Enforceable placement preferences must be clearly articulated in writing and made available to all residents of the community in question. A requirement that an antenna be located where reception or transmission would be impossible or substantially degraded is prohibited by the rule… A valid enforceable placement preference should not contain prohibited provisions such as prior approval or require professional installation… when an antenna is professionally installed, the installer often determines the location of the antenna at the time of installation based upon the type of antenna installed and the ability of the antenna to receive an acceptable quality signal.
Source Link - 6 765 Ill. Comp. Stat. 605/18.4
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No rule or regulation shall prohibit any reasonable accommodation for religious practices, including the attachment of religiously mandated objects to the front-door area of a condominium unit.
Source Link - 7 736 Ill. Comp. Stat. 5/9-104.1
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the demand shall give the purchaser under such contract, or to the condominium unit owner, as the case may be, at least 30 days to satisfy the terms of the demand before an action is filed… the demand shall set forth the amount claimed which must be paid within the time prescribed in the demand and the time period or periods when the amounts were originally due… the demand shall set forth the nature of the lease and memorandum of lease or the leasing requirement not satisfied. The amount claimed shall include regular or special assessments, late charges or interest for delinquent assessments, and attorneys’ fees claimed for services incurred prior to the demand. Attorneys’ fees claimed by condominium associations in the demand shall be subject to review by the courts in any eviction proceeding…
Source Link - 8 736 Ill. Comp. Stat. 5/9-104.2
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(a-5) The Board of Managers may seek to evict a tenant or other occupant of a unit under an existing lease or other arrangement between the tenant or other occupant and the defaulting owner of a unit… the Board of Managers elects not to accept a tenant or occupant in possession as its own and to commence a separate action, written notice of the eviction order against the unit owner and demand to quit the premises shall be served on the tenant or other occupant in the manner provided under Section 9-211 at least 10 days prior to bringing suit to evict the tenant or other occupant.
Source Link - 9 736 Ill. Comp. Stat. 5/9-104.3
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All common interest community associations electing pursuant to paragraph (8) of subsection (a) of Section 9-102 to have this Article made applicable to such association shall follow the same procedures and have the same rights and responsibilities as condominium associations under this Article.
Source Link - 10 765 Ill. Comp. Stat. 160/1-15
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(d) Every common interest community association shall define a member and its relationship to the units or unit owners in its community instruments….
Source Link - 11 805 Ill. Comp. Stat. 105/112.15
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(a) The board of directors shall adopt a resolution, which may be with or without their recommendation, proposing that the corporation be dissolved voluntarily, and directing that the question of such dissolution be submitted to a vote at a meeting of members entitled to vote on dissolution, if any, which may be either an annual or special meeting… (c) At such meeting a vote of the members entitled to vote on dissolution shall be taken on the resolution to dissolve voluntarily the corporation. The resolution shall be adopted by receiving the affirmative vote of at least two-thirds of the votes present…
Source Link - 12 805 Ill. Comp. Stat. 105/112.17
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A plan providing for the distribution of assets, not inconsistent with the provisions of this Act, may be adopted by a corporation in the process of dissolution and shall be adopted by a corporation for the purpose of authorizing any transfer or conveyance of assets for which this Act requires a plan of distribution, in the following manner…the board of directors shall adopt a resolution recommending a plan of distribution and directing the submission thereof to a vote at a meeting of members having voting rights, which may be either an annual or a special meeting… Such plan of distribution shall be adopted upon receiving the affirmative vote of at least two-thirds of the votes present…
Source Link - 13 805 Ill. Comp. Stat. 105/112.20
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(a) When a voluntary dissolution has been authorized as provided by this Act, articles of dissolution shall be executed and filed in duplicate in accordance with Section 101.10 of this Act… (b) When the provisions of this Section have been complied with, the Secretary of State shall file the articles of dissolution. (c) The dissolution is effective on the date of the filing of the articles thereof by the Secretary of State.
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