What Should Illinois Condo Boards Know About Conflicts of Interest?

 Posted on September 28, 2026 in Condominium & Homeowner Association Law

Illinois condominium association boards should know that a conflict of interest is not always illegal, but hiding one is a problem. A conflict of interest exists whenever a board member's personal or financial interest could influence a decision they make on behalf of the association. Illinois law does not ban those situations outright. It requires disclosure, a specific process, and in some cases a vote by the unit owners.

If your condo board has a conflict of interest in 2026, Arlington Heights, IL, condominium association lawyers can help you handle it properly.

What Duty Do Illinois Condo Board Members Owe the Association?

Illinois condominium board members owe fiduciary duties to the unit owners. Under 765 ILCS 605/18.4, officers and board members must exercise the care owed by a fiduciary to the unit owners, whether appointed by the developer or elected by the owners.

In practice, that means board members should act in the interests of the condominium association and its unit owners rather than putting their own interests first.

What Counts as a Conflict of Interest on a Condo Association Board?

Common examples of conflicts of interest that may arise for condo board members include:

• A board member's own company bidding on association work

• A spouse's, child's, or sibling's business submitting a proposal

• A board member voting on a violation involving their own unit or a close friend's

• Steering work to a contractor that employs the board member

• Accepting gifts, discounts, meals, or event tickets from a vendor

• Using association contractors or materials on a personal unit

• Serving on the board while also working for the management company

• Pushing a rule change that mainly benefits the member's own unit

Most of these examples begin with good intentions. A board member who owns a landscaping company genuinely may offer the best price. The problem is that the other unit owners cannot tell the difference between a good deal and a favor unless there’s a visible bidding process.

Can an Illinois Condo Board Hire a Board Member's Company?

An Illinois condo board can hire a board member's company, but only by following a specific procedure. The same restriction covers any corporation or partnership in which a board member, or a member of their immediate family, holds a 25 percent or greater interest. The board can move forward only if it notifies the unit owners of its intent within 20 days after deciding to enter the contract.

Unit owners can then file a petition signed by 20 percent of the unit owners calling for an election to approve or disapprove the contract. The petition must be filed within 30 days after the owners receive notice, and the election must be held within 30 days after the petition is filed. For this rule, immediate family means the board member's spouse, parents, and children.

How Should a Condo Board Handle a Conflict of Interest?

The safest approach to handling a conflict of interest is for the interested board member to disclose the conflict in writing before any discussion begins. The disclosure should go into the meeting minutes, and the interested member should leave the discussion and abstain from a vote on a transaction involving the conflict.

Even when the conflicted member offers the lowest price for a bid, getting other quotes can show that the board tested the market rather than simply accepting a familiar name.

Illinois condominium associations also have certain powers and responsibilities under the General Not For Profit Corporation Act when they do not conflict with the Condominium Property Act or the association's governing documents. Under 805 ILCS 105/108.60, a transaction involving an interested director is not void solely because of that interest if the transaction was fair to the corporation. The law also provides protections when the material facts are disclosed, and the transaction is approved by disinterested directors or by members entitled to vote. Documenting the conflict and how the board handled it helps show that the proper process was followed.

Contact Our Cook County, IL Condominium Association Attorney Today

Dickler, Kahn, Slowikowski & Zavell, Ltd. brings over 150 years of combined legal experience to community association work, including situations where a board member's business, family, or unit is involved in a decision. We help condo boards build a disclosure process before a problem arises and review proposed contracts against Illinois notice requirements. We also respond when unit owners raise concerns about a past decision.

Contact Dickler, Kahn, Slowikowski & Zavell, Ltd. at 847-593-5595 to talk to our Arlington Heights, IL condominium association lawyers today.