Does the Illinois Common Interest Community Association Act Apply to Every HOA?

The Short Answer

No. Under 765 ILCS 160/1-75, a common interest community association organized under the Illinois General Not For Profit Corporation Act and having either 10 units or fewer or annual budgeted assessments of $100,000 or less is exempt from CICAA unless the association affirmatively elects to be covered by a majority of its directors or members.

What Is CICAA?

CICAA is the Illinois Common Interest Community Association Act. It applies to qualifying common interest communities and addresses subjects such as governance, meetings, records, assessments and association powers.

What Is the Small-Association Exemption?

Section 1-75 provides an exemption for a qualifying common interest community association organized under the General Not For Profit Corporation Act when it has either 10 units or fewer or annual budgeted assessments of $100,000 or less, unless the association affirmatively elects coverage by the required majority.

Does Exemption From CICAA Mean the HOA No Longer Exists?

No. CICAA coverage and corporate existence are different questions. A nonprofit corporation may continue to exist even if CICAA does not apply, and recorded covenants or property interests can raise separate issues.

Do the Covenants Still Matter?

Yes. Recorded declarations, covenants, easements, plats and deeds can create property rights and obligations separate from CICAA. Whether a covenant is currently enforceable can depend on its wording, amendments, expiration provisions, recording history and other facts.

What About Condominiums?

Condominiums are governed by the Illinois Condominium Property Act rather than CICAA. Whether a development is legally a condominium, common interest community or another type of association depends on its governing documents and legal structure.

Can a Small Association Elect Into CICAA?

Section 1-75 states that an otherwise exempt small association may affirmatively elect to be covered by CICAA by a majority of its directors or members. Whether a particular association validly made such an election requires review of the relevant records and governing documents.

Bottom Line

Do not assume that every organization called an “HOA” is governed by the same statute. The recorded documents, corporate status, unit count, annual budgeted assessments and any election into CICAA can all matter. An Illinois attorney can review those materials together.