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New Licensing Rules for Property Management Firms

While Community Association Managers or CAMs (individuals who serve as property managers) have long been required to maintain a license with the Illinois Department of Financial and Professional Regulation (“IDFPR”), management firms themselves did not need to register…until now.

Effective last month, in June of 2023, CAM Firms (management companies) must also be licensed.  These new licensure requirements are designed to ensure better quality control within CAM Firms by requiring designated supervision of all CAM and administrative employees, by requiring certain training and oversight, by implementing insurance and deposit standards, and by making the firms themselves – rather than just their employees – accountable.  These new CAM Firm rules also provide default standards for certain things like transition of accounts to the Board upon termination of the relationship, and for compliance with relevant statutes and governing documents, even if not explicitly addressed on the management contract.

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