The Illinois Receivership Act Explained

The Illinois Receivership Act: what you need to know

The Illinois Receivership Act was recently signed into law on August 1, 2025, creating a new standardized legal framework for how receivers are appointed and operate in Illinois. For property owners, lenders, real estate professionals, and property managers, this act brings clarity to a process that previously varied widely between courtrooms and situations.

This blog explains what the Illinois Receivership Act is, why it matters, and what property stakeholders should know when the act goes into effect on January 1, 2026, giving property managers and owners several months to prepare.

What Is a Receivership?

A receivership is a court-ordered process where a neutral third party, called a receiver, is appointed to temporarily manage a property. The goal is to protect and preserve the asset when it’s at risk due to financial distress, foreclosure, or mismanagement.

Receivers step in when:

• A property is in foreclosure or behind on payments.

• Owners fail to maintain the building or collect rents.

• Disputes between stakeholders put the property’s value at risk.

Once appointed, the receiver takes over daily operations such as collecting rent, paying expenses, making repairs, and ensuring the property doesn’t lose value. Unlike an owner or lender, the receiver acts under court supervision and in the best interests of all parties involved.

What Does the Illinois Receivership Act Do?

In short, the Illinois Receivership Act (HB0028) provides much-needed clarity on when receivers can be appointed, what powers they hold, and how they are supervised by the court. By creating consistency in law across the state, the Act reduces uncertainty for lenders and investors, while ensuring properties in distress are properly maintained and protected.

The Act streamlines receiverships statewide by setting clear standards for when a receiver can be appointed, what powers they hold, and how they must report to the court. This consistency benefits lenders, owners, and property managers alike. The main changes and takeaways of The Illinois Receivership Act include:

• Uniform Rules Statewide: all courts now follow the same standards when deciding if a receiver should be appointed.

• Defined Powers of Receivers: receivers can collect rents, pay expenses, make repairs, and, with court approval, lease or sell property.

• Accountability Measures: receivers must file reports, account for income/expenses, and act in the best interests of all parties.

• Borrowing Authority: Receivers can secure financing (receiver’s certificates) with court approval to stabilize properties.

• Lien Priority Clarity: the law explains how receiver’s liens are ranked, giving lenders more predictability.

• Applies to All Property Types: from commercial buildings to residential properties in distress.

Why the Illinois Receivership Act Matters

For years, Illinois courts handled receivership petitions under a confusing set of court practices and scattered, inconsistent regulations. That meant outcomes could vary widely depending on the county or, in some cases, even the judge. The new Illinois Receivership Act changes that by creating a clear, statewide framework that benefits property owners, lenders, and managers alike. 

The Illinois Receivership Act:

• Creates predictability for lenders and investors.

• Provides transparency for property owners.

• Gives property managers and receivers a clear rulebook for their duties.

• Helps preserve property value, preventing distressed real estate from falling into disrepair.

For different stakeholder groups, the impact looks a little different:

• Property Owners: If your property falls into receivership, understand that the receiver’s role is not to punish you but to preserve the asset under court supervision.

• Lenders: The Act gives you a stronger and clearer pathway to request receivership when collateral is at risk.

• Property Managers/Receivers: This law codifies best practices, ensuring accountability and expanding tools to stabilize troubled assets.

The Illinois Receivership Act creates a structured, predictable process that benefits courts, lenders, owners, and property managers alike. By setting consistent standards for receivership appointments and operations, it provides greater certainty for all parties involved.

At PRG Management, our Chicago property management team specializes in handling distressed assets, court-appointed receiverships, and managing successful property stabilizations. Do you have questions about the Illinois Receivership Act and what it means for your building? Contact PRG Management today to speak with a Chicago property management expert and discover how we can assist you under the Illinois Receivership Act.

The Hidden Risks of Neglecting Chicago Facilities Management

Proper Chicago facilities management support is the backbone of any well-maintained and profitable commercial property. In Chicago, where extreme weather conditions, compliance regulations, and tenant expectations create a complex landscape for property owners and investors, neglecting facilities management can lead to significant financial and operational setbacks. As experienced Chicago property managers, PRG Management understands the critical role that proactive management plays in protecting investments and ensuring tenant satisfaction.

We collected some of the most common issues we encounter when property owners and investors hire us for our Chicago facilities management services. If you don’t work with a Chicago property management team, you may be at risk of one of these pitfalls.

Increased Maintenance Costs Due to Deferred Repairs

When routine preventative maintenance is overlooked, minor issues inevitably become more costly repairs. For example, a small plumbing leak left unattended can result in extensive water damage, mold growth, and structural deterioration. HVAC systems that are not regularly serviced may fail at the worst possible time, leading to emergency repairs that are both inconvenient and expensive. Our proactive facilities management ensures that these issues are addressed early and regularly, preventing unnecessary financial strain, and preserving the integrity of the property. 

Tenant Dissatisfaction and High Turnover Rates

A property’s physical condition directly reflects its ownership’s commitment to tenant satisfaction. When maintenance concerns are consistently ignored, residents and commercial tenants become frustrated. Leaky roofs, malfunctioning elevators/HVACs, and pest issues contribute to a poor living or working experience, prompting tenants to seek alternative options. High turnover rates mean increased vacancies and additional marketing costs, leading to lost revenue. Maintaining a property’s facilities is key to developing long-term tenant relationships and minimizing disruptions.

Local Legal and Compliance Issues

Chicago has strict building codes and property maintenance regulations that owners must adhere to. With unique requirements for different buildings, it can get complex for those not familiar with the landscape. Ignoring these responsibilities can result in costly fines, legal disputes, and, in extreme cases, condemnation of the property. Routine inspections, preventative maintenance, and general proactive facilities management actions help ensure compliance with fire safety codes, accessibility requirements, and structural integrity standards. Failing to meet these regulations can lead to legal problems that jeopardize a property’s profitability and reputation. 

Safety Hazards and Liability Risks

A poorly maintained property poses significant safety risks. Loose handrails, uneven walkways, faulty electrical wiring, and neglected fire safety systems can all contribute to accidents and severe injuries. When property owners fail to notice and address these hazards, they open themselves up to legal claims and liability lawsuits. A comprehensive facilities management plan mitigates these risks by prioritizing safety, reducing the likelihood of incidents, and protecting tenants and ownership from legal exposure.

Decreased Property Value and Marketability

Neglecting facilities management has a direct impact on property value. A building that shows signs of disrepair, such as peeling paint, outdated systems, and neglected common areas—loses its competitive edge in the market. Investors and prospective tenants notice these deficiencies, leading to reduced interest and lower valuation. Regular maintenance and strategic upgrades help sustain property value and attract quality tenants willing to pay premium rates.

Energy Inefficiency and Rising Utility Costs

An often-overlooked consequence of poor facilities management is energy inefficiency. Outdated HVAC systems, insufficient insulation, and neglected electrical systems lead to excessive energy consumption and high utility bills. Without proper oversight, property owners may be overpaying for resources that could be better managed through routine maintenance and HVAC system upgrades. Implementing energy-efficient solutions through proper facilities management cuts costs and aligns with sustainability initiatives that appeal to today’s tenants.

The Competitive Advantage of Proactive Facilities Management

In Chicago’s enormous real estate market, a well-managed property stands apart from the competition. Proactive facilities management demonstrates professionalism, protects long-term investments, and bolsters tenant retention. A proper property management team will keep these important systems and physical conditions of a building from ever snowballing out of control. By addressing maintenance and safety needs before they become major problems, property owners position themselves for sustained success.

At PRG Management, we understand the complexities of Chicago facilities management and its impact on operational efficiency. A dedicated facilities management approach safeguards your investment, ensures tenant satisfaction, and maintains compliance with important local regulations. For those looking to maintain a high-performing property in Chicago, professional facilities management is not an option—it’s a necessity. Contact us today for a FREE Chicago facilities management proposal or fill out the form below!

Now Managing: North Center 4000┃4000-4020 N Damen Ave

PRG Management is excited to announce our recent luxury management assignment at 4000-4020 N Damen for the North Center 4000 complex. This luxury residential building gets its name for finding itself right in the heart of Chicago’s North Center neighborhood. As seasoned veterans of this North Side community and its adjacent neighborhoods, this was an easy transition for our Chicago property managers.

Our management responsibilities cover both the boutique commercial retail spaces and the luxury apartments they are connected to. Our Chicago property managers find a balance between providing luxury rental & HOA management services to the residents while managing retail tenants such as Starbucks. From tenant to financial management our goal is to maximize profits for owners while maintaining a high standard of care for the tenants and the space itself. By utilizing the Chicago leasing services at Pearson Realty Group, the Chicago property managers at PRG Management drastically reduce the turnover time for apartments, thus protecting the building’s profit and owner ROI.

Located in the North Side of Chicago, the North Center neighborhood is a charming residential area approximately five miles away from downtown Chicago, extending westward from the North Branch of the Chicago River. This vibrant community offers a diverse range of living options, including trendy lofts, cozy apartments, spacious condos, and detached single-family homes, catering to various budgets and lifestyles. The commercial heart of North Center flows along Lincoln Avenue and Irving Park Road, where residents can explore a variety of shops, local brewpubs, pizzerias, and unique coffee shops.

North Central 4000 Details

• Address: 4000 N. Damen Ave. Chicago, IL

• Neighborhood: North Center

• Estimated value: $20M

• Residential Units: 32 Luxury Condos

• Commercial Space: 12,000 SqFt

• Year Built: 2002

Are you frustrated with the results of your current rental or HOA management? PRG Management is here to provide top-rated Chicago property management services for HOA and rental buildings alike. Contact us today for a free quote and more information on our facilities management services. 

Chicago's First Condo Association: 1011 N Lasalle Street

The first condo project in the history of Chicago

Chicago’s Lasalle Street is among some of the most history-packed stretches in the city that is home to the YMCA building, The Federal Reserve Bank of Chicago, The U.S. Bank building, The Field Building, and even City Hall. But quietly tucked away just north of the river over the Lasalle Street Bridge, is a historic Chicago building PRG Management has managed since 2015 at 1011 North Lasalle Street. This classic 8-unit building was Chicago’s very first homeowner’s association, with some great history behind it.

Historical photo of the Newberry Library at 60 W Walton St, located just across the street diagonally from 1011 N La Salle Street.

The 1011 Lasalle Condominium association was created on December 17th, 1964 according to their recording date found in some historical documents. Unfortunately, for those living in Chicago before this, ownership of common building elements and multiple tenants agreeing to incurred expenses was a stressful tiring experience. Back in the 60s the norms and landscape of the city were very different so for many reasons, owners did not see the need to have someone manage their building. Nowadays it’s commonplace for condo associations, homeowner’s associations (HOAs), and even smaller landlords to use the services of property management companies to take care of a wide variety of regular tasks.

Not only does 1011 N Lasalle have a rich history behind it but so does the beautiful River North/Magnificent Mile area surrounding it. It is located just across the street from the Newberry Library in a neighborhood that in the 60s, was considered a rough part of the city.

After the Chicago Fire of 1871, many parts of the city were rebuilt and rezoned. Following the fire, River North was quickly turned into an industrial district named Smokey Hollow with factories, forges, and rails turning the area around. Sadly, just as fast as it appeared, Smokey Hollow was gone following large closings of factories and employees moving to the suburbs. But today River North has grown into one of the most popular neighborhoods in Chicago with unmatched dining options and a bustling nightlife. And even with all this growth and modernities, 1011 N Lasalle is among the surrounding historical homes that give this part of Chicago its true character.

Since 2015, PRG Management has worked hard to help owners at 1011 N Lasalle preserve the classic historical appearance of both the interior and exterior elements. All while maintaining and upgrading the structures wherever possible. Maintenance/repairs, rent collection, financial management, regulation enforcement, and vendor coordination are just a glimpse of what PRG Management is able to manage for any sized building. This can be particularly challenging on older buildings at times when dealing with old systems, discontinued parts, and outdated information. But this is where PRG Management’s team shines in going the extra mile to ensure all owner’s issues are handled as quickly and as efficiently as possible.

PRG Property Management is a full-service property management company, home to a team of reliable and accomplished brokers, distinguished property managers, and incredible support staff. We offer a broad range of services to effectively manage commercial and residential real estate in Chicago and surrounding suburbs. If you are interested in requesting a free proposal of services for your building simply fill out the form below!