Title
ORDINANCE AMENDING ORLAND PARK, IL CODE OF ORDINANCES: TITLE 5-112 DEVELOPMENT AND SUBDIVISION REQUIREMENT, CHAPTER G (PRIVATE IMPROVEMENT), SECTION 5. HOMEOWNERS ASSOCIATION (HOA) FACILITY TRANSFER PROGRAM
History
Project: 2026-0860 Text Amendment for the Homeowners Association (HOA) Facility Transfer Program
See also 2026-0678
Request:
Approval of an amendment to the Land Development Code, by adding Section 5 Homeowners Association (HOA) Facility Transfer Program to Section 5-112 Development and Subdivision Requirement, Chapter G Private Improvement.
The ordinance would establish a standardized application, review, and approval process for HOA facility transfer requests, and would condition any Village acceptance of such facilities on the successful creation of a Special Service Area (SSA) sufficient to fund both capital improvements and ongoing maintenance.
BACKGROUND
The Village periodically receives inquiries from homeowners associations seeking to transfer privately owned and maintained facilities - which may include stormwater detention facilities, private roadways, utility infrastructure, and common area improvements - into Village ownership. These requests typically arise when an association's facilities require significant capital repair or replacement, or when the association's reserves or assessment capacity are insufficient to meet those obligations.
The Village does not currently have an adopted policy governing these requests. In the absence of a standardized procedure, each inquiry has been evaluated on an ad hoc basis, which creates several difficulties: inconsistent treatment among similarly situated associations, uncertainty for applicants regarding the criteria and process, unrecovered staff and legal costs associated with preliminary review, and the potential for the Village to assume long-term maintenance liabilities without a dedicated funding source.
This issue is expected to grow significantly. A substantial share of the Village's residential subdivisions was platted between the 1970s and the 1990s, meaning that association-owned infrastructure in many neighborhoods is now approaching or has exceeded its typical service life.
Proposed Amendment Summary
The proposed ordinance contains eleven sections. Its principal provisions are as follows:
Establishment and Purpose (Sections 1-2). Creates the Program and states its intent: uniform engineering, financial, and legal standards; a requirement that associations demonstrate willingness to pursue an SSA as a condition precedent to Village review; a prohibition on acceptance absent an SSA sufficient to fund capital and ongoing maintenance; and promotion of long-term infrastructure reliability and regulatory compliance.
Definitions (Section 3). Defines HOA Facility, Application, Feasibility Review, SSA, and Agreement.
Administration (Section 4). Assigns joint administration to Public Works, Development Services, Finance, and the Village Attorney, with Village Manager oversight and authority to issue administrative procedures.
Application (Section 5). Directs all inquiries to Public Works and requires a completed application accompanied by a $10,000 fee before any Feasibility Review begins. Submission constitutes acknowledgement that an SSA will be required, authorization for Village site investigations, and agreement to provide historical maintenance records.
Feasibility Review (Section 6). Requires Public Works to assess facility condition, identify capital upgrades needed to meet Village standards, estimate long-term maintenance obligations, and prepare initial and ongoing cost projections.
Financial Analysis (Section 7). Requires Finance to amortize capital improvements, calculate annual maintenance expense, determine projected per-household SSA cost, and provide a written analysis to the association.
Agreement (Section 8). Requires a signed Agreement, prepared with the Village Attorney, describing the facilities, documenting consent to SSA creation, specifying any pre-transfer obligations, and disclosing estimated financial impact.
Board Review and Approval (Section 9). Places the matter before Committee and Board with a proposed SSA establishment schedule. Board approval is contingent on successful SSA creation and finalization of legal instruments; if no SSA is established, the Village takes no ownership interest.
Severability and Effective Date (Sections 10-11). Standard provisions.
FISCAL IMPACT
No financial impact.
Recommended Action/Motion
STAFF RECOMMENDED ACTION
Regarding Case Number 2026-0680 - Transfer of the Homeowners Association (HOA) Facility Text Amendment, Staff recommends to accept and make findings of fact as discussed at this Plan Commission meeting and within the Staff Report dated August 27, 2026;
And
Staff Recommends the Plan Commission approve the Land Development Code Amendment for Section 5-112.
STAFF RECOMMENDED MOTION
Regarding Case Number 2026-0680 - Transfer of the Homeowners Association (HOA) Facility Text Amendment, I move to approve the Staff Recommended Action as presented in the Staff Report to the Plan Commission for this case.