Illinois HOA reserve study requirements (2026)
Reasonable reserves required; reserves disclosed separately in the budget.
Quick facts
What the law actually requires
Illinois's Condominium Property Act at 765 ILCS 605/9(c)(2) requires that all budgets adopted by a board of managers on or after July 1, 1990 provide for reasonable reserves for capital expenditures and deferred maintenance for repair or replacement of the common elements, disclosed separately from the operating budget. In setting the amount, the board must consider: the repair and replacement cost and estimated useful life of the property the association is obligated to maintain; the current and anticipated return on investment of association funds; any independent professional reserve study the association obtains; the financial impact on unit owners, and the market value of the units, of any assessment increase needed to fund reserves; and the association's ability to obtain financing or refinancing.
An association without a reserve requirement in its condominium instruments may elect to waive the reserve requirement in whole or in part by a vote of 2/3 of the total votes of the association, and may re-adopt it later by the same vote. Any waiver must be disclosed in the association's financial statements and highlighted in bold print in response to a prospective purchaser's request for information.
765 ILCS 605/9 does not specify a reserve-study cycle or require a periodic update.
How ReserveDeck handles Illinois
When a property's compliance jurisdiction is set to Illinois, ReserveDeck's report prints the 765 ILCS 605/9 requirements described above on its Disclosures page and states the study cycle in the cover letter. The reserve math is the same in every state.
ReserveDeck does not reproduce a state's statutory disclosure form; it provides the reserve figures a board needs to complete one (reserve requirement, percent funded, multi-year projections, and the funding plans).
Built-in Illinois compliance.
Select 765 ILCS 605/9 from the Compliance Jurisdiction dropdown and ReserveDeck's PDF builder produces the right disclosure format automatically. Engine math is identical across jurisdictions — only the deliverable changes.
Frequently asked questions — Illinois
Does Illinois require a specific reserve study cycle?
ReserveDeck's report prints the 765 ILCS 605/9 requirements on its Disclosures page and provides the reserve figures the statute's disclosures call for (reserve requirement, percent funded, multi-year projections, and funding plans). It does not reproduce a statutory form.
What counts toward Illinois's 'reasonable reserves' standard?
Under 765 ILCS 605/9(c)(2), the board must consider the repair and replacement cost and useful life of the property, the association's return on investment, any independent reserve study it obtains, the impact on unit owners and unit market value of a needed assessment increase, and the association's ability to obtain financing or refinancing.
Can Illinois owners waive condo reserves?
Yes, conditionally. An association without a reserve requirement in its condominium instruments may waive the reserve requirement in whole or in part by a vote of 2/3 of the total votes of the association, and can re-adopt it later by the same vote. The waiver must be disclosed in the financial statements and highlighted in bold print in response to a prospective purchaser's request.
How are Illinois reserves disclosed?
765 ILCS 605/9(c)(2) requires reserves for capital expenditures to be provided for separately from the operating budget, so owners can see reserve funding distinct from operating revenue and expense.