HB 4338

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Full Text of HB4338
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	HB4338 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4338
Introduced 1/14/2026, by Rep. Sonya M. Harper
SYNOPSIS AS INTRODUCED:
765 ILCS 615/10
765 ILCS 615/20
765 ILCS 615/25
765 ILCS 615/30
765 ILCS 615/40
Amends the Condominium and Common Interest Community Ombudsperson Act. Requires every elected or appointed member of a condominium or common interest community board to complete within 12 months of election or appointment a certified governance and fiduciary training program. Requires the Office of Ombudsperson to make the program available online for free or at low-cost. Describes elements that must be included in the program, including the following: a publicly accessible database listing enforcement actions against licensed community association managers and management companies that includes the nature of the violation, date of enforcement action, type of penalty or corrective measure, and status of compliance or appeal. Requires the Office to establish a Condominium Mediation and Arbitration Program that allows owners and associations to voluntarily resolve disputes before litigation involving governance, access to information, and enforcement of rules. Provides that mediation proceedings are confidential, but outcomes may be summarized anonymously in the Ombudsperson's annual report for data purposes. Makes findings.
LRB104 15964 JRC 29205 b
A BILL FOR
		HB4338		LRB104 15964 JRC 29205 b
1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Condominium and Common Interest Community
5Ombudsperson Act is amended by changing Sections 10, 20, 25,
630, and 40 as follows:
7    (765 ILCS 615/10)
8    (Section scheduled to be repealed on January 1, 2029)
9    Sec. 10. Findings. The General Assembly finds as follows:
10        (1) Managing condominium property or common interest
11    community property is a complex responsibility. Unit
12    owners and persons charged with managing condominium
13    property or common interest community property may have
14    little or no prior experience in managing real property,
15    operating a not-for-profit association or corporation,
16    complying with the laws governing condominium property or
17    common interest community property, and interpreting and
18    enforcing restrictions and rules imposed by applicable
19    instruments or covenants. Unit owners may not fully
20    understand their rights and obligations under the law or
21    applicable instruments or covenants. Mistakes and
22    misunderstandings are inevitable and may lead to serious,
23    costly, and divisive problems. This Act seeks to educate
		HB4338	- 2 -	LRB104 15964 JRC 29205 b
1    unit owners, condominium associations, common interest
2    community associations, boards of managers, and boards of
3    directors about the Condominium Property Act and the
4    Common Interest Community Association Act. Effective
5    education can prevent or reduce the severity of problems
6    within a condominium or common interest community.
7        (2) Anecdotal accounts of abuses within condominiums
8    and common interest communities create continuing public
9    demand for reform of condominium and common interest
10    community property law. This results in frequent changes
11    to the law, making it difficult to understand and apply,
12    and imposes significant transitional costs on these
13    communities statewide. By collecting empirical data on the
14    nature and incidence of problems within these communities,
15    this Act will provide a sound basis for prioritizing
16    reform efforts, thereby increasing the stability of
17    condominium and common interest community property law.
18        (3) Condominium ownership is one of the most 
19    significant financial investments for Illinois residents, 
20    particularly in urban areas, such as Chicago. A growing 
21    number of condominium owners report misconduct, 
22    negligence, and obstruction from condominium boards and 
23    property management firms, causing diminished 
24    transparency, loss of property value, and emotional 
25    distress. Although the Office of the Condominium and 
26    Common Interest Ombudsperson is charged with licensing 
		HB4338	- 3 -	LRB104 15964 JRC 29205 b
1    community association managers, it lacks sufficient 
2    mechanisms for timely enforcement, mediation, and public 
3    accountability. Vulnerable populations, particularly 
4    seniors, low-income residents, and individuals in smaller 
5    associations, face disproportionate harm because of the 
6    cost of legal representation and the absence of accessible 
7    administrative remedies. It is, therefore, necessary to 
8    strength the Office's enforcement authority and ensure 
9    fair governance through education and accountability 
10    measures.
11(Source: P.A. 98-1135, eff. 1-1-17 (See Section 20 of P.A.
1299-776 for effective date of P.A. 98-1135).)
13    (765 ILCS 615/20)
14    (Section scheduled to be repealed on January 1, 2029)
15    Sec. 20. Office of the Condominium and Common Interest
16Community Ombudsperson.
17    (a) There is created in the Division of Real Estate within
18the Department of Financial and Professional Regulation, under
19the supervision and control of the Secretary, the Office of
20the Condominium and Common Interest Community Ombudsperson.
21    (b) The Department shall name an Ombudsperson and other
22persons as necessary to discharge the requirements of this
23Act. The Ombudsperson shall have the powers delegated to him
24or her by the Department, in addition to the powers set forth
25in this Act.
		HB4338	- 4 -	LRB104 15964 JRC 29205 b
1    (c) Neither the Ombudsperson nor the Department shall have
2any authority to consider matters that may constitute grounds
3for charges or complaints under the Illinois Human Rights Act
4or that are properly brought before the Department of Human
5Rights or the Illinois Human Rights Commission, before a
6comparable department or body established by a county,
7municipality, or township pursuant to an ordinance prohibiting
8discrimination and established for the purpose of
9investigating and adjudicating charges or complaints of
10discrimination under the ordinance, or before a federal agency
11or commission that administers and enforces federal
12anti-discrimination laws and investigates and adjudicates
13charges or complaints of discrimination under such laws.
14    (d) Information and advice provided by the Ombudsperson
15has no binding legal effect and is not subject to the
16provisions of the Illinois Administrative Procedure Act.
17    (e) The Office is authorized to receive, investigate, and 
18mediate complaints from unit owners regarding misconduct, 
19governance violations, or denial of lawful request for 
20records; recommend corrective actions; and refer substantiated 
21complaints to the appropriate enforcement unit of the 
22Department. Subject to the confidentiality provisions in 
23Section 45 of this Act and except as otherwise protected by 
24law, the Office, the Department, or both may compel the 
25production of documents, minutes, or financial statements 
26necessary to investigate complaints.
		HB4338	- 5 -	LRB104 15964 JRC 29205 b
1(Source: P.A. 98-1135, eff. 1-1-17 (See Section 20 of P.A.
299-776 for effective date of P.A. 98-1135); 99-776, eff.
38-12-16.)
4    (765 ILCS 615/25)
5    (Section scheduled to be repealed on January 1, 2029)
6    Sec. 25. Training and education.
7    (a) On or before July 1, 2017, the Ombudsperson shall
8offer training, outreach, and educational materials, including 
9but not limited to, materials concerning fiduciary duties, 
10ethical obligations, and statutory requirements, and may
11arrange for the offering of courses to unit owners,
12associations, boards of managers, and boards of directors in
13subjects relevant to: (i) the operation and management of
14condominiums and common interest communities; and (ii) the
15Condominium Property Act and the Common Interest Community
16Association Act.
17    (b) Every elected or appointed member of a condominium or 
18common interest community board must, within 12 months of 
19election or appointment, complete a certified governance and 
20fiduciary training program. The Office must make available 
21online to all board members free or at low-cost such a program, 
22which includes instruction on the following:
23        (1) fiduciary duties and conflict of interest 
24    avoidance;
25        (2) financial management and transparency 
		HB4338	- 6 -	LRB104 15964 JRC 29205 b
1    requirements;
2        (3) member rights and procedures for access to 
3    records; and
4        (4) ethical standards of conduct and penalties for 
5    misconduct.
6(Source: P.A. 98-1135, eff. 1-1-17 (See Section 20 of P.A.
799-776 for effective date of P.A. 98-1135); 99-776, eff.
88-12-16.)
9    (765 ILCS 615/30)
10    (Section scheduled to be repealed on January 1, 2029)
11    Sec. 30. Website; toll-free number.
12    (a) The Office shall maintain on the Department's website
13the following information:
14        (1) the text of this Act, the Condominium Property
15    Act, the Common Interest Community Association Act, and
16    any other statute, administrative rule, or regulation that
17    the Ombudsperson determines is relevant to the operation
18    and management of a condominium association or common
19    interest community association;
20        (2) information concerning non-judicial resolution of
21    disputes that may arise within a condominium or common
22    interest community, including, but not limited to,
23    alternative dispute resolution programs and contacts for
24    locally-available dispute resolution programs;
25        (3) a description of the services provided by the
		HB4338	- 7 -	LRB104 15964 JRC 29205 b
1    Ombudsperson and information on how to contact the
2    Ombudsperson for assistance; [and]
3        (4) any other information that the Ombudsperson
4    determines is useful to unit owners, associations, boards
5    of managers, and boards of directors; and [.]
6        (5) a publicly accessible database listing enforcement 
7    actions against licensed community association managers 
8    and management companies that includes the nature of the 
9    violation, date of enforcement action, type of penalty or 
10    corrective measure, and status of compliance or appeal.
11    (b) The Office may make available during regular business
12hours a statewide toll-free telephone number to provide
13information and resources on matters relating to condominium
14property and common interest community property.
15(Source: P.A. 98-1135, eff. 1-1-17 (See Section 20 of P.A.
1699-776 for effective date of P.A. 98-1135); 99-776, eff.
178-12-16.)
18    (765 ILCS 615/40)
19    (Section scheduled to be repealed on January 1, 2029)
20    Sec. 40. Dispute resolution.
21    (a) Beginning on July 1, 2020, and subject to
22appropriation, unit owners meeting the requirements of this
23Section may make a written request, as outlined in subsection
24(f) of this Section, to the Ombudsperson for assistance in
25resolving a dispute between a unit owner and an association
		HB4338	- 8 -	LRB104 15964 JRC 29205 b
1that involves a violation of the Condominium Property Act or
2the Common Interest Community Association Act.
3    (b) The Ombudsperson shall not accept requests for
4resolutions of disputes with community association managers,
5supervising community association managers, or community
6association management firms, as defined in the Community
7Association Manager Licensing and Disciplinary Act.
8    (c) The Ombudsperson shall not accept requests for
9resolutions of disputes for which there is a pending complaint
10filed in any court or administrative tribunal in any
11jurisdiction or for which arbitration or alternative dispute
12resolution is scheduled to occur or has previously occurred.
13    (d) The assistance described in subsection (a) of this
14Section is available only to unit owners. In order for a unit
15owner to receive the assistance from the Ombudsperson
16described in subsection (a) of this Section, the unit owner
17must:
18        (1) owe no outstanding assessments, fees, or funds to
19    the association, unless the assessments, fees, or funds
20    are central to the dispute;
21        (2) allege a dispute that was initiated, or initially
22    occurred, within the 2 calendar years preceding the date
23    of the request;
24        (3) have made a written complaint pursuant to the unit
25    owner's association's complaint policy, as outlined in
26    Section 35, which alleged violations of the Condominium
		HB4338	- 9 -	LRB104 15964 JRC 29205 b
1    Property Act or the Common Interest Community Association
2    Act;
3        (4) have received a final and adverse decision from
4    the association and attach a copy of the association's
5    final adverse decision marked "final" to the request to
6    the Ombudsperson; and
7        (5) have filed the request within 30 days after the
8    receipt of the association's final adverse decision.
9    (e) A unit owner who has not received a response, marked
10"final", to his or her complaint from the association within a
11reasonable time may request assistance from the Ombudsperson
12pursuant to subsection (a) of this Section if the unit owner
13meets the requirements of items (1), (2), and (3) of
14subsection (d) of this Section. A unit owner may not request
15assistance from the Ombudsperson until at least 90 days after
16the initial written complaint was submitted to the
17association. The Ombudsperson may decline a unit owner's
18request for assistance on the basis that a reasonable time has
19not yet passed.
20    (f) The request for assistance shall be in writing, on
21forms provided electronically by the Office, and include the
22following:
23        (1) the name, address, and contact information of the
24    unit owner;
25        (2) the name, address, and contact information of the
26    association;
		HB4338	- 10 -	LRB104 15964 JRC 29205 b
1        (3) the applicable association governing documents
2    unless the absence of governing documents is central to
3    the dispute;
4        (4) the date of the final adverse decision by the
5    association;
6        (5) a copy of the association's written complaint
7    policy required under Section 35 of this Act;
8        (6) a copy of the unit owner's complaint to the
9    association with a specific reference to the alleged
10    violations of the Condominium Property Act or the Common
11    Interest Community Association Act;
12        (7) documentation verifying the unit owner's ownership
13    of a unit, such as a copy of a recorded deed or other
14    document conferring title; and
15        (8) a copy of the association's adverse decision
16    marked "final", if applicable.
17    (g) On receipt of a unit owner's request for assistance
18that the Department determines meets the requirements of this
19Section, the Ombudsperson shall, within the limits of the
20available resources, confer with the interested parties and
21assist in efforts to resolve the dispute by mutual agreement
22of the parties.
23    (h) The Office must establish a Condominium Mediation and 
24Arbitration Program that allows owners and associations to 
25voluntarily resolve disputes before litigation involving 
26governance, access to information, and enforcement of rules. 
		HB4338	- 11 -	LRB104 15964 JRC 29205 b
1Mediation proceedings are confidential, but outcomes may be 
2summarized anonymously in the Ombudsperson's annual report for 
3data purposes. [The Ombudsperson shall assist only opposing ]
4[parties who mutually agree to participate in dispute ]
5[resolution.]
6    (i) A unit owner is limited to one request for assistance
7per dispute. The meaning of dispute is to be broadly
8interpreted by the Department.
9    (j) The Department has the authority to determine whether
10or not a final decision is adverse under paragraph (4) of
11subsection (d) of this Section.
12    (k) The Department shall, on or before July 1, 2020,
13establish rules describing the time limit, method, and manner
14for dispute resolution.
15    (l) (Blank).
16(Source: P.A. 98-1135, eff. 1-1-17 (See Section 20 of P.A.
1799-776 for effective date of P.A. 98-1135); 99-776, eff.
188-12-16.)