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In the News October 5, 2026 by Dave Goddard

Your HOA Is About to Need a Rulebook for Chasing Late Dues — Here’s Why Buyers Should Read It

Most people read their HOA documents the same way they read software license agreements: scroll, sigh, sign. That’s a mistake in Illinois, where a condo or homeowners association can do things to a delinquent owner that would surprise most buyers — and where a new state law is about to make associations put their collection playbook in writing before they can use it.

If you own, are buying, or are selling a townhome in Bartlett, a condo in Schaumburg or Carol Stream, or a single-family home in one of the many subdivisions in Streamwood, Hanover Park, Elgin and Bloomingdale that come with an association attached, this is worth ten minutes.

The new rule: no written policy, no lawsuit

According to summaries published by association-management firms, Senate Bill 3527, signed July 31, 2026 as Public Act 104-0734, amends both the Illinois Condominium Property Act and the Common Interest Community Association Act. The headline: starting January 1, 2027, an association has to formally adopt a written collection policy before it can take legal action to collect unpaid assessments. (I couldn’t pull the final enrolled text from the General Assembly’s site this morning, so treat the fine print as “confirm with an attorney,” but the broad strokes are consistent across the summaries.)

That policy is supposed to spell out:

  • When dues are owed and when they become delinquent
  • Late fees, interest and returned-check fees
  • Whether and how an owner can get on a payment plan
  • When an account gets turned over to the association’s attorney
  • How payments get applied (fees first, or assessments first — this matters more than it sounds)
  • Which legal remedies the association may use

The part that matters most for anyone buying: the collection policy also has to go into the resale disclosure package. So for closings after the law kicks in, buyers should see in black and white how their future association treats owners who fall behind.

Why Illinois owners should care more than most

Here’s the thing many transplants don’t know. In Illinois, an association isn’t limited to filing a lien and waiting. Under the eviction article of the Code of Civil Procedure (735 ILCS 5/9-102), a condo association — and many common-interest communities whose declarations allow it — can use the eviction process against an owner who doesn’t pay assessments. Yes, against the owner, in a unit they own. Associations can win possession and lease the unit out to recover what’s owed.

That’s a powerful tool, and it’s exactly why lawmakers want the rules of the road posted in advance. A written policy means an owner hit with a surprise medical bill or a layoff can see where the payment-plan door is before the attorney letters start.

The assessment protections you already have

While we’re on the subject, a few existing Illinois rules that owners in Carol Stream condos and Bartlett townhome communities routinely don’t know about:

The budget has to come to you first

Both statutes require the board to send owners a copy of the proposed annual budget at least 30 days — but no more than 60 days — before it’s adopted. If your board is voting on next year’s budget without having mailed or emailed it to you, ask why.

The 115% rule

If an adopted budget or a special assessment would push your total assessments above 115% of the previous year’s, owners holding 20% of the votes can petition within 14 days to force a vote on it. The board then has 30 days to call that meeting, and the increase stands unless a majority of the total votes reject it. There are carve-outs — emergencies and work required by law, for example — so it isn’t a veto over every roof replacement. But it’s real leverage, and most owners never use it because they don’t know it exists.

Small HOAs play by lighter rules

The Common Interest Community Association Act largely doesn’t apply to associations with 10 or fewer units or $100,000 or less in annual budgeted assessments, unless they opt in. A lot of older single-family subdivisions around Bartlett and Streamwood fall into that bucket. Whether the new collection-policy requirement reaches them depends on how the final text interacts with that exemption — another good question for the association’s lawyer, not the guy at the pool.

What this means if you’re buying

Illinois already requires sellers to hand buyers the association’s declaration, bylaws, rules, budget, reserve information, pending litigation and more — Section 22.1 of the Condominium Property Act for condos, Section 1-35 of the CICAA for HOAs. The association generally has 30 days from a written request to produce it. Order it early. Then actually read three things:

  • The reserves. A thin reserve fund in a 30-year-old Schaumburg condo building is a special assessment waiting for a date.
  • Board minutes. Not technically part of every disclosure package, but ask. Minutes are where “we’re getting bids on the parking lot” lives.
  • The collection policy (once it’s required). Harsh late-fee stacking or a hair-trigger attorney referral tells you a lot about how a board operates.

What this means if you’re selling

Get your account current before listing, and request your disclosure package the week you sign the listing agreement, not the week you get an offer. A 30-day production window can collide with a 45-day close. If your association charges a fee for the package, that’s normal — budget for it.

And if you’re in a dispute with your board, Illinois has a Condominium and Common Interest Community Ombudsperson housed at the Illinois Department of Financial and Professional Regulation. It can’t overrule your board, but it can point you to the right statute — which is often enough to change the tone of a conversation.

The bottom line

HOAs aren’t villains; plenty of them keep townhome communities in Bartlett and Hanover Park looking sharp and keep property values steady. But in Illinois, the association’s collection powers are stronger than most buyers assume, and the new written-policy rule is a rare chance to see those powers spelled out before you sign anything.

If you’re eyeing a home with an association attached and want a second set of eyes on the disclosure package — or you’re selling and want to get ahead of the paperwork — Team Goddard is happy to walk through it with you. No pressure, just a careful read.

Straight outta the brain of Bob, Garry Real Estate’s in-house lead AI. We make no promises of correctness — always verify the details with a human before making decisions.