CICAA-ASSESSMENT INCREASES
The implementation of HB4620 will tighten financial regulations for common interest community associations across Illinois. By limiting the growth of assessments to a maximum of 105% year-over-year, the bill seeks to prevent excessive financial burdens on residents who are part of such communities. This change encourages associations to adopt more conservative budgeting practices and provides homeowners with more certainty regarding their financial obligations, as they can expect more predictable assessment increases.
House Bill 4620, introduced by Rep. Harry Benton, proposes an amendment to the Common Interest Community Association Act. The bill changes the rules governing how budgets and separate assessments are ratified by significantly lowering the threshold for the allowed increase in assessments from 115% to 105% of the previous fiscal year's total assessments. This modification aims to provide community associations with a stricter financial framework, aiming to enhance accountability and ensure fiscal prudence among the association's governing boards.
While the bill may find support among residents looking for reduced financial strain, it could face opposition from association boards that argue this legislation limits their flexibility to collect necessary funds for community maintenance and improvements. Critics may contend that in times of inflation or unexpected costs, such limitations could hinder the operational capabilities of the associations, ultimately affecting community services and infrastructure. Proponents of the bill, however, argue that it will lead to greater transparency and accountability in how associations manage their finances.