Across Illinois, condominium and HOA boards rely on reserve studies that appear compliant on paper—but quietly omit major components, understate replacement costs, and normalize chronic underfunding. The result is predictable: deferred maintenance, infrastructure failures, and surprise six-figure special assessments for owners.
This analysis explains why Illinois’ vague “reasonable reserves” requirement is not enough and outlines a proposed Community Association Reserve Study Integrity Act. The proposal establishes enforceable reserve-study standards, transparent funding metrics, phased funding targets, and meaningful conflict-of-interest rules. Drawing on real governance failures, it shows how honest reserve studies protect owners, auditors, and boards—and why statutory reform is necessary to restore financial integrity and building safety in common-interest communities.
