Reserve Study Questions from Illinois Boards
Short answers on the law, the study itself and how this service works. Each legal point links to its statute.
The law
Is a reserve study mandatory in Illinois?
No statute requires one by name. Condo budgets must provide reasonable reserves under 765 ILCS 605/9, weighing repair and replacement costs and useful lives, which in practice is what a study supplies. Your declaration or your lender may require one outright.
Can the board decide to skip reserves this year?
Not on its own. A condo association can waive the reserve rule only if its declaration has no reserve requirement, and only by two-thirds of the total owner votes. The waiver then has to be disclosed in the financial statements and to buyers. Talk to the association’s attorney before any vote.
What happens if the new budget raises assessments a lot?
If total assessments for the year would exceed 115 percent of the previous year’s, owners with 20 percent of the votes can petition within 14 days for a meeting to reject the budget. A majority of the total votes is needed to reject it. Some assessments are excluded; see Section 18 of the Condominium Property Act or Section 1-45 of the CICAA.
Do buyers see our reserves?
Yes. The resale information condo associations provide under 765 ILCS 605/22.1 includes the status and amount of the reserve fund and the capital spending expected over the current and next two fiscal years.
Where can owners read their rights?
The Illinois Department of Financial and Professional Regulation publishes a condo unit owner’s rights and responsibilities handbook. It is a good plain-language companion to the Act.
The study
What is in a reserve study?
Two halves. The first is an inventory of what the association maintains, with how worn each item is, how many years it should last and what it will cost to replace. The second sets that inventory against the money in the reserve fund and lays out a contribution schedule for the years ahead.
How long does it take?
For a townhome HOA, a few weeks from the site visit is common. For a high-rise with a long component list, allow longer, especially in the fall when many Illinois boards are budgeting at once.
What documents should we have ready?
The declaration and bylaws, the last study if there is one, the past three budgets and year-end statements, the reserve balance today, notes on any big repairs or replacements done since the previous study, and for Chicago towers the latest exterior wall reports.
How often should we update it?
As of this writing the Condominium Property Act sets no schedule; a bill in the 104th General Assembly (HB 2563) proposed studies every five years, so ask the association’s attorney about recent changes. Under the CAI National Reserve Study Standards, good practice is to have the provider walk the property again no later than every third year, with desk-only revisions in between if the board wants fresh numbers each budget.
Does the study tell us how much to collect?
It recommends a contribution, often with more than one funding option. The board decides, weighing the factors Section 9(c) lists, including the effect on owners.
Using this service
Do you prepare reserve studies?
No. We introduce your board to a reserve study provider who does. The request process explains each step.
What does it cost to use you?
Nothing for the association. The provider pays us a referral fee if they take on the introduction.
Will lots of firms call me?
No. We name one provider to you first, and your details go to them only if you agree.
Get a quote for your building
Tell us where the property is, what kind of association you run and when the last study was done. A provider who works on Illinois properties like yours then prepares a quote.
- No charge to the association for the introduction.
- You see who the provider is before anything is passed on.
- The study fee is agreed between your board and the provider.
We are a matching service, not a reserve study firm. We find a provider, name them to you, and send your request only once you agree. Providers pay us a fee for each introduction.
Thank you. Your board's request is with us.
- Within one business day you hear from us, by phone or email, naming the reserve study provider we suggest for the property.
- Give us the go-ahead and your request goes to them; decline and it stays with us.
- The provider then contacts you to scope the study and quote. Your details are not reused for newsletters or promotions.