SPRINGFIELD – In response to the condominium collapse in Surfside, Florida in June 2021, State Senator Sara Feigenholtz (D-Chicago) spearheaded a measure that would increase transparency for Chicago residents who live in high rises that passed the Senate Tuesday.
“It is the unit owners that pay monthly assessments into the reserve funds; therefore, these funds should be transparent to unit owners,” said Feigenholtz. “People deserve the peace of mind that their condominium association can make necessary repairs.”
A reserve study identifies the current status of the reserve fund and a stable and equitable funding plan to offset ongoing deterioration, resulting in sufficient funds when those anticipated major common area expenditures actually occur. This study helps homeowners and condominium associations determine how much in reserve funds they should maintain.
House Bill 4158 would require a homeowner or condominium association who conducts a reserve study to keep it within its books and records, which by law the individual property owners have a right to inspect.
“Reserve funds are set aside for future financial obligations such as major repairs and maintenance,” said Feigenholtz. “In addition, being able to access information about the reserve studies keeps unit owners informed of the health and readiness of the association’s ability to address needed renovations and upgrades for their building.”
House Bill 4158 passed the Senate and heads to the House for concurrence.
