Reserve studies are an essential planning tool that helps community associations budget for major repairs and replacements based on life‑cycle needs. CAI’s Illinois legislative action committee is thrilled to inform you that SB 3401 has been reintroduced and will provide condominium and common interest community associations Illinois guidance when it comes to reserve studies for their association. 

We are reaching out right now because SB 3401 has just been assigned to the Senate Judiciary Committee — a key step that will determine whether the bill advances. Senators need to hear from the community association industry!

SB 3401 would require certain condominium and common interest associations to conduct and update a reserve study every five years. This legislation is vital to ensuring community safety, preventing financial crises, and helping associations understand and plan for their long‑term repair and replacement needs.

CAI strongly supports mandated reserve studies for new developments and periodic studies for existing communities with major shared components. A reserve study provides a physical assessment of the property, a review of the association’s financials, and recommendations for adequately funding future capital projects. These reserves are essential to preventing deferred maintenance, unexpected special assessments, and potentially unsafe conditions.

With the bill now before the Senate Judiciary Committee, your vocal support is needed. Please take a moment today to contact the Senators on the Judiciary Committee and urge them to support this common‑sense legislation.