Chicago adds a unique two-overlay regime: the Section 18 condo deconversion right (a structural feature of Illinois condo law) and the FISP facade inspection program for buildings over 80 feet. The dominant risks are Chicago-specific condo deconversion exposure, FISP and balcony-inspection compliance, reserve underfunding under the 'reasonable reserves' standard, and the practical implications of statutory disclosure regimes that do not include a rescission period.
Condo deconversion exposure (Section 15 of the Condominium Property Act)
Illinois is the country's most active condo-deconversion market. Under 765 ILCS 605/15, a condominium can be sold as a whole to a single buyer with the approval of 75 percent of owners (or higher if the declaration sets a higher threshold). Successful deconversions force minority owners to sell at the deconversion price. The Chicago market has seen extensive bulk-sale activity since 2016. For an individual condo buyer, the structural minority-position risk is a unique Illinois consideration.
Chicago FISP and balcony-inspection compliance
Chicago's Facade Inspection and Safety Program (FISP) requires facade inspections every 4/8/12 years for buildings 80 feet and taller. Since 2023, Chicago has also expanded balcony-inspection requirements for condos 5 stories and above. For Chicago high-rise diligence, the most recent FISP report and any outstanding repair orders are essential documents.
'Reasonable reserves' with statutory waiver right
765 ILCS 605 requires condo budgets after July 1, 1990, to provide for 'reasonable reserves' — but the statute does not define reasonable and allows owners to waive reserves entirely by a 2/3 vote (subject to conspicuous disclosure on resale financials). CICAA requires budget transparency for HOAs but does not impose specific reserve funding. Underfunded reserves are common and legal.
Detailed resale-certificate regime with no rescission
Condo Section 22.1 requires a resale certificate within 10 business days at a $375 statutory fee cap. CICAA §1-35 requires HOA disclosure within 30 days. Both require detailed content including liens, capital expenditures, reserves, financials, litigation, and insurance. But neither provides a statutory rescission period — late or incomplete disclosure entitles buyers to damages but not automatic cancellation.
IDFPR Ombudsperson and CAM licensing
The Condominium and Common Interest Community Ombudsperson within IDFPR provides education and mediation (not enforcement) and is extended through 2029. Community association managers are licensed under 225 ILCS 427. The framework provides more centralized resources than most non-coastal states but ultimately relies on courts and private action for enforcement.
