1. Why Was This Requirement Added?
For decades, Section 22.1 of the Illinois Condominium Property Act required nine statutory disclosure items. However, in small self-managed buildings, assessment collection procedures are often handled informally via email or verbal communication.
When unit owners fell behind, disputes frequently erupted over arbitrary late fee assessments, inconsistent notice periods, and sudden legal referrals. To eliminate ambiguity for both existing owners and prospective buyers, the Illinois General Assembly enacted Public Act 103-0875, creating paragraph (10) under 765 ILCS 605/22.1(a):
“(10) Effective January 1, 2027: A copy of the association’s collection policy.”
2. What Must a Compliant Collection Policy Contain?
To satisfy statutory scrutiny and withstand legal challenge under Illinois law (including the Forcible Entry and Detainer Act and 765 ILCS 605/9(g)), an association collection policy should formally codify:
- Due Date: The precise calendar day monthly assessments are due (typically the 1st of each calendar month).
- Grace Period: The statutory or declaration-authorized grace window (e.g., until the 10th or 15th of the month) before a late charge attaches.
- Late Fee Schedule: A fixed, reasonable late fee amount (as authorized by the association’s declaration and bylaws).
- Notice of Delinquency: The timeline for mailing a written statement of account and reminder to the unit owner.
- Mandatory 30-Day Demand: The statutory 30-day notice and demand for possession required under 735 ILCS 5/9-104.1 prior to filing a lawsuit or recording an assessment lien.
- Application of Payments: Explicit order of allocation: payments applied first to principal assessments, then to late charges, collection fees, and attorney’s costs.
3. Action Plan for Volunteer Boards Before January 1, 2027
Volunteer boards of self-managed condominiums should not wait until a resale request arrives on their doorstep. Because adopting or amending a formal policy requires a duly noticed board meeting, we recommend taking the following steps:
- Review Existing House Rules: Check if your recorded declaration or house rules already mention late fees or collection rules.
- Adopt a Written Policy Template: Draft a clear, written collection policy document adhering to Illinois law.
- Board Notice & Vote: Send 48-hour meeting notice to unit owners, place the collection policy resolution on the board meeting agenda, and vote to adopt it.
- Archive for Resale Packets: Store the adopted policy in your board’s permanent records so it can be attached to all 22.1 packets delivered on or after January 1, 2027.
Pre-Formatted Illinois Collection Policy Template ($49 Kit)
Our 22.1 Packet Starter Kit includes a ready-to-adopt, fillable Collection Policy template structured specifically for small self-managed Illinois condominiums under 765 ILCS 605/22.1 and P.A. 103-0875. Simply insert your association’s specific due dates and fee amounts, hold your board vote, and you’re fully prepared for the 2027 mandate.