Every year brings a new slate of legislation at both the local and state levels with implications for Chicagoland’s condo, HOA, and co-op communities. So far, the measures being proposed and enacted for 2026 are heavy on transparency, reserve planning, and increased oversight for condo and common interest communities. Boards should track these bills as they move through the General Assembly and work with their legal counsel to make sure their governing documents and operational practices comport with evolving obligations.

Here’s a quick overview of a few pieces of new and proposed legislation that Illinois condo associations, HOAs, and co-ops should be watching, and why:

Illinois House Bill 2563 (HB2563) – Reserve Study Requirement

Sponsor: Rep. Terra Costa Howard; 

Co-Sponsor Rep. Jay Hoffman

What it Does: According to LegiScan.com, HB2563 would amend the Common Interest Community Association Act and the Condominium Property Act to require associations to conduct a reserve study every five years. Reserve studies evaluate the funds needed for future major maintenance, repairs, and common-area replacements. Associations with 15 units or fewer are exempt from the study requirement (but still must comply with budgeting and reserve provisions). Importantly, the reserve study must be made available to prospective buyers upon request during resale.

Why it Matters: This bill would create a consistent, statewide schedule for reserve planning to improve budgeting and transparency, and to help prospective buyers understand the building or HOA’s long-term funding needs.

Illinois House Bill 4618 (HB4618) – Common Interest Community Transparency Act

Sponsor: Rep. Dagmara Avelar

What it Does: LegiScan.com reports that HB4618 proposes broad transparency reforms by amending the state’s Common Interest Community Act to, among other things, specify which association records must be provided to unit owners, restrict excessive copying fees, and prohibit nondisclosure/confidentiality agreements around association board decisions. It requires notice enhancements for meetings, mandates video conferencing options, and permits unit owners or their proxies to record board meetings.

Why it Matters: This bill would shift daily association operations and record-keeping practices by increasing transparent governance at the board level, and expand owners’ rights to participate and access their communities’ records. 

Illinois House Bill 4617 (HB4617) – Office of Common Interest Community Registration

Sponsor: Rep. Dagmara Avelar

What it Does: HB4617 would create a new Office of Common Interest Community Registration under the Illinois Dept. of Financial and Professional Regulation. Associations would be required to register with the office, provide key governing documents, board contacts, and pay a fee per unit. The Office would investigate owner complaints, issue fines for Act violations, and potentially refer civil rights or ADA matters to appropriate authorities. If enacted, it would also repeal the Condominium & Common Interest Community Ombudsperson Act.

Why it Matters: According to LegiScan, this bill introduces a new regulatory framework and state oversight body that could enforce compliance and standardize reporting — a major shift from the current system where associations largely self-govern under statute. 

SB1383 – Extension of Condominium & Common Interest Community Ombudsperson Act

Sponsors: Sen. Sara Feigenholtz & Sen. Cristina Castro; House Sponsor: Rep. Daniel Didech

Status: Public Act 104-0377 (effective August 15, 2025).

What it Does: This measure extends the repeal date of the Condominium and Common Interest Community Ombudsperson Act from January 1, 2026 to January 1, 2029.

Why it Matters: According to the General Assembly website, boards and unit owners will continue to have access through 2029 to an Ombudsperson for information and education on their respective rights and obligations.

Local Code Changes 

While not state bills, a few Chicago municipal law changes effective in 2026 are relevant for associations within the city:

• Expanded Additional Dwelling Unit (ADU) Ordinance: Effective April 1, 2026, and depending on building size, the Chicago Zoning Code now permits certain ‘accessory units’ (e.g., coach houses or conversions), potentially affecting how associations evaluate property use and rental units. Boards will need to review their governing documents and zoning compliance before responding to owner ADU proposals.

• Organic Waste & Composting Ordinance: New rules curb blanket prohibitions on composting if a given building or HOA’s system meets city requirements; associations managing waste services or rules should review their policies accordingly.

This list was compiled by CooperatorNews Staff with information from legiscan.com, ilga.gov, and ksnlaw.com. It is a general overview only; check with your legal counsel for full details.