By Douglas J. Sury, & Member of ACTHA Legislative Action Committee
Keay & Costello, P.C.
Wheaton, IL

For many members of ACTHA, Pat Quinn’s signing of the Condominium and Common Interest Community Ombudsperson Act in December 2014 was a pleasant surprise. While different versions of ombudsperson legislation had been introduced in several previous legislative sessions, there wasn’t much hope that the concept of an ombudsperson would ever become a reality. That, however, has changed...somewhat.

The dynamic in Springfield between the executive and legislative branches is obviously different than when the bill originally passed. At the time the bill was passed, both houses of the legislature and the governor’s office were under the leadership of the democrats. That is no longer the case. Discussions with the new executive branch leaders continue over the true role of the ombudsperson and the office. Should it be solely educational and a resource for owners and boards?  Should it take a more active role in assisting in resolving disputes?  Should the office do both?  Representatives from ACTHA were involved in meetings during the current 99th General Assembly with legislative leaders, the Department of Financial and Professional Regulation (which is the department under which the ombudsperson will operate), and other stakeholders in an attempt to reach consensus as to what the ombudsperson office should be. As of the authoring of this article, House Bill 4658, which makes several changes to the original Act, has passed both houses of the General Assembly. Since the bill was a bipartisan effort, there is expectation that it will ultimately be signed by Governor Rauner. This article will therefore attempt to highlight certain portions of the Act and the current state of the ombudsperson, in light of the changes contained in House Bill 4658:

The Current Role of the Ombudsperson

No later than July 1, 2017, the ombudsperson is to be offering training, outreach and educational materials to the public and it may also offer courses related to the management and operation of community associations, the Condominium Property Act and the Common Interest Community Association Act. The ombudsperson is to also offer a toll-free number for contact and inquiry purposes in addition to providing information regarding alternative dispute resolution providers (arbitrators, mediators) and methods available to communities and their members. The ombudsperson does not have authority to consider any matters involving claims under the Illinois Human Rights Act or that are properly brought before the Department of Human Rights or the Illinois Human Rights Commission.

Reporting to the General Assembly

The Department of Financial and Professional Regulation is required to provide its first written report of the ombudsperson’s activities to the General Assembly no later than July 1, 2018 and beginning in 2019, annual reports of the office’s activity are to be filed no later than October 1st.

It is expected that the General Assembly and administration will use these reports to evaluate the proper, future role of the ombudsperson.

Registration of Community Associations

The requirement that all community associations register with the Department has been removed.

Association Internal Dispute Resolution Policies

All associations subject to the Condominium Property Act and the Common Interest Community Association Act must adopt their own policies for resolving complaints made by owners no later than January 1, 2019. The original bill required the policies to be in place by January 1, 2017 so associations have been afforded two additional years to develop these policies. The Act currently provides that these policies must include a form on which an owner may make the complaint, a description of the process by which the complaint must be submitted, the timeline in which the Association will resolve the complaint, and the requirement that the Association make its “final” decision within 180 days.

While House Bill 4658 still offers opportunities for the ombudsperson to directly assist owners and boards in resolving disputes, the funds for such services have yet to be provided. ACTHA leaders stressed to legislative leaders that education should be a primary responsibility of the ombudsperson. House Bill 4658 is a step in that direction, but the final complexion and role of the office has still not been determined. Stay tuned…