The Illinois Receivership Act excludes most of the condominium stock it is said to cover
The Illinois Receivership Act excludes most of the condominium stock it is said to cover
2026-09-10 · Illinois · Legislation
What happened. HB 28 was signed August 1, 2025 as Public Act 104-0034 and took effect January 1, 2026, creating the Illinois Receivership Act at 765 ILCS 1090.1 It is a comprehensive commercial receivership code, based on the uniform act, governing appointment, powers, duties, notice and sale of receivership property.
It has been described across the association trade press as the new tool for a financially or operationally collapsed community association. That is half right, and the omitted half is the part boards need.
What Section 4 actually says
Section 4(a) applies the Act to receiverships over (1) real property and personal property related to or used in operating it, (2) personal property and fixtures, and (3) “a person that is not an individual” — which reaches an association as an entity.
Section 4(b) then provides that the Act “does not apply to residential real estate as defined under Section 15-1219 of the Illinois Mortgage Foreclosure Law.” Broadly, that definition captures property of one to six dwelling units at least one of which the owner occupies.
Section 4(c) further excludes receiverships under Section 15-1704 of the Mortgage Foreclosure Law and various regulatory statutes. Section 4(d) preserves a court's independent equitable power to appoint a receiver.
Why the carve-out matters more in Illinois than elsewhere
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