How are condominium fees determined in Illinois?

Condominium fees in Illinois, often called common expense assessments or homeowner's association (HOA) fees, are determined based on a combination of factors, including:

1. Budget and Operating Expenses:

The community or condominium association's budget plays a significant role in determining the condominium fees. The budget outlines anticipated income and expenses for maintaining and operating the condo complex. Expenses can include items like property taxes, insurance, common area maintenance, utilities, reserves for repairs and replacements, management costs, etc.

2. Unit Size and Amenities:

The size and amenities associated with a particular condo unit can influence the assessment. Larger units usually require higher fees due to increased upkeep costs, while units with more amenities (such as a balcony or additional parking space) may also have higher fees.

3. Condo Association Rules and Bylaws:

The condo association's governing documents, which include the declaration, bylaws, and rules, may set forth guidelines for determining the fees and special assessments. These documents may outline the criteria used for allocating common expenses among the unit owners.

4. Reserves:

Condominium associations are often required by state law to maintain a reserve fund for future capital improvements, repairs, and replacements. These reserves are accumulated through monthly fees paid by unit owners and are used for significant maintenance projects.

5. Special Assessments:

In addition to regular monthly fees, condo associations may occasionally levy special assessments to cover unexpected or extraordinary costs. These assessments can be used for significant repairs or improvements that are not covered by the existing budget or reserves. The board of directors makes the decision to impose special assessments, and the process is usually subject to the association's governing documents and state laws.

It's important to note that condominium fees can vary significantly from one association to another, depending on the factors mentioned above. Potential buyers should carefully review the condo association's budget, reserves, special assessment history, and the allocation methodology before purchasing a condominium unit in Illinois.