Are you ready for one of the biggest changes in collection law affecting Illinois condominium and homeowners’ associations?

Beginning January 1, 2027, Illinois associations will need more than unpaid assessments and a governing declaration before pursuing collection litigation.

Under SB 3527, associations must first adopt a written collection policy that complies with the new statutory requirements.

This isn’t simply another governance recommendation—it is a legal prerequisite that could affect an association’s ability to enforce assessment collections.

For boards of directors, community association managers, and management companies, this means now is the time to review your current collection procedures.

Questions every board should be asking:

• Do we already have a written collection policy?
• Does it satisfy the new statutory requirements?
• Has it been formally adopted by the board?
• Will our current collection process comply after January 1, 2027?

Waiting until an owner becomes delinquent is the wrong time to discover your policies are outdated.

A properly drafted collection policy not only helps satisfy the new law but also creates consistency, transparency, and fairness for every owner while protecting the association’s financial stability.

Associations that prepare early will be positioned to continue collecting assessments efficiently and avoid unnecessary procedural challenges.

As attorneys who work with Illinois community associations, we’re already helping boards review and update their governing documents and collection procedures in anticipation of these changes.

If your association has questions about SB 3527 or wants to review its current collection practices, we are happy to help.

Preparation today can prevent problems tomorrow.