Excessive HOA Special Assessments in Illinois

Hi Andrea,

You can speak with the HOA board and ask what the special assessments are for. This may help you understand how the money is being used. Generally, HOAs are allowed to levy special assessments to build a reserve fund or for other unforeseen expenses. However, if you feel that the special assessments are suspicious or excessive, you may have options.

If the HOA is subject to the Illinois Common Interest Community Association Act, you may consider Section 1-45(c), which states that if special assessments payable in the current fiscal year exceed 115% of the sum of all regular and separate assessments payable during the previous fiscal year, the members with 20% of the votes can deliver a written petition to the board within 14 days of the board’s action. The petition will call for a meeting within 30 days of petition delivery to consider the separate assessment. The assessment will be deemed approved unless a majority vote to reject the assessment is cast during the meeting. You may review whether your situation applies by comparing your special assessment to the previous year’s data and coordinating with fellow homeowners.

Apart from this, according to Section 1-45(f), assessments for additions and alterations to the common areas or HOA property outside the annual budget are subject to a simple majority approval of the members present at a meeting called to consider the assessments. You may raise this with the HOA board to hold a meeting and a vote if it is applicable.

Furthermore, you may inspect the association’s financial records to verify where the money is going. Section 1-45(d) also states that if the expenses exceed the budget, the HOA must disclose the variance. However, do note that the board may levy assessments without member approval for emergencies. For further assistance, kindly consult a lawyer.