Chicago condominium owners can face unexpected expenses when their associations approve major repairs, building improvements, or special assessments. Understanding Illinois condominium law can help owners protect their financial interests and address disagreements before they become costly legal disputes.
Owning a condominium in Chicago offers many advantages, including convenient locations, shared amenities, and professional management of building maintenance. However, condominium ownership also comes with financial and legal responsibilities that can become particularly significant when an association faces expensive repairs, rising operating costs, or disagreements among unit owners and board members.
For condominium owners in downtown Chicago, the Gold Coast, Lincoln Park, Lakeview, and surrounding communities, an unexpected special assessment can create serious financial concerns. A building that requires extensive masonry repairs, elevator replacement, roof work, or other improvements may need funding beyond what the association has collected through regular monthly assessments. When the board decides to collect additional money from unit owners, questions often arise about whether the assessment is necessary, whether the board followed proper procedures, and what rights owners have to challenge its decisions.
Illinois law establishes requirements governing condominium associations, including financial management, board responsibilities, access to records, and certain procedures for approving assessments. Understanding these protections is particularly important for owners who believe their association has failed to communicate important financial information or has imposed an assessment without following the applicable legal requirements.
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Why Chicago Condominium Owners Face Special Assessments
Chicago has an extensive inventory of condominium buildings, ranging from smaller neighborhood properties to large residential towers along Lake Michigan. Many buildings require substantial ongoing maintenance, particularly as major structural and mechanical systems age. Even well-managed associations can encounter expenses that exceed their existing budgets or reserve funds.
A special assessment is generally an additional charge imposed on condominium owners to pay for expenses that cannot be adequately covered through the association’s regular operating budget or available reserves. These expenses may involve major building repairs, unexpected insurance costs, structural improvements, or other common expenses that the association is responsible for addressing.
For example, a condominium association might determine that exterior masonry requires significant repairs to address deteriorating building materials. If the association does not have sufficient reserve funds, the board may consider a special assessment to cover the project. Depending on the building, the expense, and the percentage of common ownership assigned to each unit, individual owners could face substantial financial obligations.
The fact that an assessment is expensive or unexpected does not automatically make it unlawful. Condominium associations have legal responsibilities to maintain common property and address conditions that could threaten the building or its occupants. However, boards must exercise their authority within the requirements of Illinois law and the association’s governing documents.
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What Does Illinois Law Say About Special Assessments?
The Illinois Condominium Property Act, 765 ILCS 605, provides the legal framework governing many aspects of condominium association operations, including the adoption of budgets and special assessments.
Under Section 18 of the Act, certain assessments are subject to specific notice, voting, and owner-petition requirements. The applicable procedure depends on the purpose of the assessment and whether the expense involves an emergency, work required by law, or other expenditures.
For certain separate assessments that cause the total assessments for the current fiscal year to exceed 115 percent of the preceding year’s total, owners holding at least 20 percent of the association’s votes may have the right to petition for a meeting within 21 days after the board’s action. The assessment may then be subject to rejection by the required majority of unit owners.
Different rules apply to emergencies and expenses mandated by law. In those circumstances, the board may have authority to proceed without the same owner-petition process. Certain additions or alterations to common elements that are not included in the adopted annual budget may also require approval by a two-thirds vote of the total ownership.
These distinctions are important because condominium owners cannot assume that every special assessment requires a general membership vote. Likewise, association boards should not assume that every proposed expense can be approved without considering the statutory requirements and governing documents.
Owners concerned about a newly announced assessment should promptly obtain the relevant notices, board meeting records, budget information, and association governing documents. Waiting too long to investigate may affect the availability of certain procedural remedies.
Can Condominium Owners Request Financial Records From Their Association?
Access to financial information is one of the most important protections available to condominium owners. When an association announces an expensive project or a substantial increase in assessments, owners understandably want to know how the decision was reached, whether alternative financing options were considered, and how the association intends to use the collected funds.
Section 19 of the Illinois Condominium Property Act establishes rights to inspect and obtain copies of specified association records, subject to statutory conditions and exceptions. Depending on the circumstances, these records can include governing documents, meeting minutes, financial records, and other information concerning association operations.
A unit owner reviewing a special assessment may want to examine the current budget, relevant reserve information, financial statements, board meeting minutes, and records supporting the proposed project. These materials may help clarify whether the expense was anticipated, whether the association previously discussed the need for repairs, and whether the board followed the required procedures.
The right to inspect records does not necessarily mean that every internal communication or document must be disclosed. Illinois law contains limitations and exceptions, and the circumstances surrounding a particular request matter. Nevertheless, associations should understand their disclosure obligations, and owners should know that they may have legal options when access to records is improperly denied.
What Happens When Owners Disagree With Their Condominium Board?
Not every disagreement between a condominium owner and an association involves a violation of the law. Boards frequently make difficult financial decisions, and owners may disagree about the cost, timing, or necessity of a project without establishing that the board acted improperly.
Legal concerns become more significant when an association allegedly fails to follow required procedures, refuses access to records that owners are entitled to inspect, acts outside its authority, or applies governing rules inconsistently.
Illinois has established the Office of the Condominium and Common Interest Community Ombudsperson within the Illinois Department of Financial and Professional Regulation. The office provides information about condominium law and offers a process through which qualifying unit owners may request assistance with certain disputes involving alleged violations of applicable condominium or common-interest community statutes.
The Ombudsperson process has eligibility requirements and procedural limitations. Generally, an owner must first use the association’s written complaint procedure and satisfy applicable deadlines before requesting assistance. The office is not a substitute for a court and does not have unlimited authority to investigate or resolve every condominium dispute.
For owners facing significant financial exposure or complicated disagreements, consultation with an attorney may be appropriate before deciding whether to pursue an association complaint, seek Ombudsperson assistance, negotiate a resolution, or consider litigation.
Illinois Lawmakers Continue to Examine Condominium Owner Protections
Condominium governance and owner protections also received attention during the Illinois General Assembly’s 2026 legislative session. Lawmakers considered proposals that would have expanded access to financial records, strengthened oversight of association management, and provided additional mechanisms for addressing disputes between owners and condominium boards.
Among the proposals considered was House Bill 5495, which would have expanded certain financial disclosure obligations and given the Condominium and Common Interest Community Ombudsperson additional authority involving unresolved complaints. Other proposals contemplated broader investigative or enforcement powers for state agencies.
These proposals did not become law during the 2026 legislative session. Consequently, condominium owners should be careful not to confuse proposed reforms with rights or remedies that are currently available under Illinois law.
The legislative discussion nevertheless illustrates the importance of transparency, financial accountability, and effective dispute resolution in condominium communities. Owners and associations alike benefit from understanding the existing legal framework and maintaining clear procedures for addressing disagreements.
What Should Chicago Condominium Owners Do When They Receive an Unexpected Assessment?
When an association announces a substantial special assessment, the first step should be to understand precisely what is being proposed. Owners should review the assessment notice, determine the purpose of the expenditure, and identify when payments are due. They should also consider whether the association has provided adequate information about the project, its estimated costs, and the process used to approve it.
Owners who have questions about the assessment should communicate with their association promptly and in writing. Maintaining copies of correspondence, notices, meeting minutes, and financial documents can be valuable if a dispute develops. When statutory petition deadlines may apply, obtaining legal advice quickly is especially important.
Simply refusing to pay an assessment can create additional legal and financial problems. Illinois condominium associations generally have statutory collection remedies for unpaid assessments, and unresolved balances can result in collection proceedings or other consequences affecting the owner’s property interests. Owners should therefore understand their obligations and available remedies before withholding payment.
An attorney familiar with Illinois real estate and condominium law can review the association’s governing documents, examine the circumstances surrounding the assessment, and help determine whether the association complied with applicable requirements.
Legal Guidance for Chicago Condominium and Real Estate Disputes
Condominium ownership involves more than purchasing and maintaining an individual residence. Owners also participate in a shared legal and financial arrangement governed by Illinois statutes, recorded declarations, bylaws, and association decisions.
Whether a dispute involves a special assessment, access to association records, board authority, or another condominium-related issue, understanding the applicable legal requirements can help owners make informed decisions and protect their property interests.
Michael V. Favia & Associates provides legal representation in real estate and related legal matters in the Chicago area. Individuals facing condominium association disagreements, unexpected financial obligations, or questions concerning their rights as property owners may benefit from discussing their circumstances with an attorney.
To learn more about the firm’s legal services or request a consultation, visit www.FaviaLawFirm.com or call 312-609-6666 or 773-631-4580 for more information, or use the client intake form on our website.
