Assessments

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  • What are regular assessments?

    Regular assessments are the amounts owners are required to pay to fund the association's operating expenses and other financial obligations.


    Assessments pay for the services and property that make association living possible—insurance, maintenance, repairs, management, utilities, professional services, reserves and numerous other expenses.


    They are, quite literally, the financial lifeblood of an association.

  • Who determines the amount of assessments?

    The Board adopts the association's annual budget, and assessments are calculated based upon that budget and the allocation methodology applicable to the association.


    In a condominium association, assessment responsibility is generally tied to each unit's percentage interest in the common elements. In a non-condominium community association, allocation is generally determined by the declaration and budget.

  • Can the Board increase assessments?

    Generally, Boards have authority to adopt budgets that may result in increased assessments, subject to applicable statutory and governing-document requirements.


    Boards should resist the temptation to artificially suppress assessments merely because increases are unpopular. Deferred financial problems rarely disappear. More often, they become larger and more expensive.

  • What is a special assessment?

    A special assessment is an assessment imposed in addition to the association's regular assessment structure, commonly to fund a significant repair, replacement, project or unexpected expense.


    Special assessments can be necessary even in well-run communities.

  • Can the Board levy a special assessment without an owner vote?

    Sometimes.


    Whether membership approval or a potential membership rejection process applies depends upon the reason for the assessment, its amount, applicable Illinois law and the association's governing documents.


    This is an area where Boards should obtain legal advice before announcing or collecting a special assessment.

  • Can owners refuse to pay a special assessment because they disagree with it?

    An owner's disagreement with a properly levied assessment does not ordinarily eliminate the obligation to pay it.


    Owners should pursue available legal or governance remedies rather than simply withholding assessments.

  • Can a Board create a payment plan for a special assessment?

    Potentially. The Board should consider cash-flow requirements, project schedules, governing documents and fair treatment of owners.


    Any payment arrangement should be clearly documented.