Bill
SB 1914
SB 1914: If a condo board's negligence makes a unit unusable, the association must earmark part of its reserves to cover the owner's loss-of-use costs, unless insured (Category D).
SB 1914 (Illinois) – Condo-Board Negligence Damages
Overview
SB 1914 proposes a targeted amendment to the Condominium Property Act (765 ILCS 605/9) dealing with budgeting, reserves, and the allocation of funds when a condominium board’s negligence results in a unit’s loss of use. The bill would require that, in such cases, a portion of reserve funds be designated to assist the affected unit owner with expenses incurred due to the loss of use, but only if the unit owner does not carry Category D loss-of-use insurance.
What the bill would change
- Core change: If there is negligence by the board that causes a unit to become unusable, the association must designate a portion of its reserves to help cover the unit owner’s loss-of-use expenses, provided the owner does not have Category D loss-of-use insurance.
- Budget and reserves framework: The bill reinforces that associations must maintain reasonable reserves for repair or replacement of common elements and requires the board to assess reserve adequacy using standard considerations (repair/replacement costs, estimated useful life, reserve studies, capital expenditures, and financing considerations). The new loss-of-use allocation sits within this existing reserves framework.
- Existing reserve flexibility: The bill preserves current mechanisms allowing associations to waive all or part of reserve requirements (subject to voting thresholds) and requires disclosure if a waiver is exercised. It also maintains existing protections for board members and managing agents when reserve funds are lacking or inadequate, subject to the waiver provisions.
- Other provisions: The language reflects the broader 1990-era requirements for annual budgets, reserve funding, and related governance; it does not overhaul the entire reserve regime but adds a specific loss-of-use relief component tied to board negligence.
Who would be affected
- Primary: Unit owners in Illinois condominiums, particularly those who might experience a loss of use due to board negligence.
- Governance: Condo boards of managers, managing agents, and association finances (budgets and reserve allocations).
- Insurance consideration: Unit owners without Category D loss-of-use insurance would be the focus of the new assistance provision.
Procedural and timeline notes
- Legislative status: Rule 3-9(a) / Re-referred to Assignments (as of March 21, 2025). The bill has circulated through committee referrals since its introduction.
- Introduced: Early 2025 (Sen. Lakesia Collins); various dates show initial filing Feb 6, 2025 with subsequent actions in March 2025.
- Related sections: Amends 765 ILCS 605/9 (Condominium Property Act).
Potential impact and considerations
- Financial impact: May increase emphasis on earmarking reserve funds for loss-of-use relief in negligence scenarios, potentially affecting reserve levels and budgeting practices.
- Liability and governance: Shifts some risk and remedy considerations toward board negligence scenarios, potentially influencing how boards document decisions around reserve designations and expenditures.
- Practical considerations: Boards will need clear processes to determine negligence, eligibility of loss-of-use expenses, and coordination with owners lacking Category D insurance.
This summary focuses on the substantive change SB 1914 would implement and its prospective effects on condominium governance and owner protections.
Compiled from official sources — confirm details with the bill’s official record.
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