In Illinois, a condo board can approve most special assessments on its own at an open, properly noticed meeting. Owners can force a vote only if yearly assessments rise more than 15%, and emergency or legally required repairs skip that step.
Most Chicago condo owners do not learn how special assessments work until one lands in their inbox. The board voted, the number is bigger than expected, and suddenly everyone has the same questions:
This guide walks through what usually happens next, what the Illinois Condominium Property Act says, and where a special assessment shows up in a Chicago condo sale. When you get a special assessment notice, you need to know what it means, what your options are, and what to ask your attorney, board, or management company next.
A special assessment is a one-time charge to condo owners for a cost the regular budget and reserve fund cannot cover. The Illinois Condominium Property Act calls it a "separate assessment," but most owners call it a special assessment. In plain English, it means the building needs money for something, and the regular monthly assessments are not enough to pay for it.
The cost is usually divided among owners based on each unit's percentage of ownership, the same way your monthly assessments are usually divided. In Chicago, special assessments often come from big building projects like:
A special assessment is not automatically a sign that the building is badly run. Sometimes it means the association is finally fixing something important. It can also be a sign that the building did not save enough in reserves, delayed repairs too long, or kept monthly assessments artificially low for years. That is why the reason for the assessment matters as much as the amount. For a closer look at how reserves and monthly fees connect to special assessment risk, see my guide to Chicago condo HOA fees.
Under Section 18 of the Illinois Condominium Property Act, the board of managers has the power to adopt a special assessment. In most cases, the board does not need an owner vote first. That surprises a lot of owners, but it does not mean the board can do it quietly or casually.
Owners must receive notice of the board meeting where the special assessment will be considered. That notice should state the time, place, and purpose of the meeting, and it generally has to be sent at least 10 days and no more than 30 days before the meeting. The meeting must be open to owners. The board can close part of a meeting for certain limited topics, like pending litigation, but the actual vote on the special assessment has to happen in the open.
This is where many owners get confused. Owners do not get to vote on every large special assessment, and the rule is more specific than most people expect. If the new budget or special assessment would push the total regular and special assessments for the year above 115% of the prior year's total, owners may be able to petition for a meeting. Here is how that works under the Act:
Step | What the Act Says |
|---|---|
The trigger | Total regular and special assessments for the year would be more than 115% of last year's total |
Who can petition | Owners holding at least 20% of the association's votes, in writing |
Deadline to petition | Within 21 days of the board's vote |
The meeting | The board must call an owners' meeting within 30 days of receiving the petition |
To reject it | A majority of the total votes in the association must vote no. If that does not happen, the assessment stands. |
The last row is the one owners miss. Stopping the assessment takes a majority of all votes in the association, including owners who never show up to the meeting. So in a 40-unit building, if 18 owners show up and all 18 vote against the special assessment, that may still not be enough.
Blocking a special assessment takes an organized group of owners, and it has to happen quickly. The Act also allows a board to spread one special assessment over more than one year. If that happens, the full amount is treated as approved in the first year, so the 115% test looks at the whole assessment at once.
There are two situations where the owner petition process does not apply. The first is an emergency, which the Act defines as an immediate danger to the structural integrity of the common elements or to the life, health, safety, or property of the owners. The second is an expense required by law.
In either case, the board can usually approve the special assessment without going through the owner-vote process, even if the amount pushes total assessments above 115%. If the building has a serious safety issue or a legal requirement, the association may not have the option to wait for owners to organize a vote.
There is one important exception going the other direction. If the special assessment is for an addition or alteration to the common elements that was not already in the budget, such as a new roof deck, a new fitness room, or another improvement that is not a necessary repair, the Act requires approval from two-thirds of the total votes of all owners. A board has more room to approve necessary repairs, and owners have more power when the project is an optional improvement.
The board sets the payment terms. Some special assessments are due in one payment, others are split into monthly or quarterly installments, and some are spread across more than one fiscal year. For larger projects, some associations may take out a bank loan, if the declaration allows it, and repay that loan through higher monthly assessments.
If you cannot pay on the schedule the board set, do not wait until the account is past due. Talk to the management company or the board before the first due date. It is usually much easier to work out a payment plan early than after late fees, attorney fees, or collection costs start piling up. If the amount is large, talk to your real estate attorney or financial advisor about your options before making assumptions.
A special assessment is not optional if it was properly adopted, and Illinois condo associations have strong collection tools. Under Section 9 of the Illinois Condominium Property Act, unpaid assessments, along with interest, late charges, attorney fees, and collection costs, become a lien on the unit. That lien comes ahead of nearly every other lien, with exceptions such as property taxes.
The association can also bring an eviction action against an owner who does not pay. That surprises people because they think of eviction as something that happens to tenants. In Illinois condo law, an association can pursue possession of a unit to collect unpaid assessments.
Starting January 1, 2027, a new Illinois law adds another step. Public Act 104-0734 requires condo associations to adopt and follow a written collection policy before taking legal action over unpaid assessments. That policy must cover items such as due dates, late fees, and when payment plans are available. Buyers will also receive a copy of that collection policy in the resale disclosure package, so if you are buying into a condo building, this is one more document to actually read.
This is where timing matters most. If you are selling a Chicago condo and there is a special assessment, the key question is whether it was confirmed before or after the buyer and seller accepted the contract.
In the Multi-Board Residential Real Estate Contract, the standard contract used for most Chicago-area home sales, the key date is the Date of Acceptance. That is the date when both buyer and seller have signed.
When the Special Assessment Happens | What the Standard Contract Says |
|---|---|
Confirmed before the Date of Acceptance | The seller pays the remaining balance at or before closing |
Proposed between the Date of Acceptance and closing | The seller must tell the buyer. The parties have three business days to agree on who pays. If they cannot agree, either party can cancel the contract. |
Pending but not yet confirmed | The seller states in the contract whether there is an unconfirmed pending special assessment that the buyer would pay after closing |
For sellers, this means you need to know what is happening in your building before you list. If a special assessment was already approved before you accept an offer, the standard contract generally makes it your cost, even if most of the installments are due after closing. If it is already confirmed, we need to know how much is left, when it is due, and how it affects your net proceeds.
If the board is discussing a major project while your unit is on the market, do not assume it will stay hidden. A buyer's attorney will likely ask for the 22.1 disclosure, budget, meeting minutes, financials, and other condo documents. If the board has already approved a special assessment, or if one is clearly being discussed, it is probably going to come out.
The better move is to know the number early and decide how you want to handle it, whether that means paying it, offering a credit, pricing around it, or negotiating it during attorney review. Your real estate attorney can negotiate different terms, so the contract is a starting point. For more on the attorney's role, see do you need a real estate attorney to sell a home in Chicago, and for the full picture of seller costs, see my guide to closing costs for Chicago home sellers.
Special assessments rarely come out of nowhere. Usually, the signs are in the building documents before the invoice shows up, which is why buyers need to read more than the listing description. There are three places a buyer can often see a special assessment coming.
When I work with condo buyers, I want them asking more than whether there is a current special assessment. These are the questions I have them ask:
A special assessment in the building history is not automatically a reason to walk away. Sometimes it means the building actually fixed the problem, and a project that is already paid for and completed can leave a building in better shape than one that keeps putting off the same repair. The bigger concern is the project everyone knows is coming, but nobody has figured out how to pay for yet. That is the one I want buyers to pay attention to.
For a full list of red flags to review, see is buying a Chicago condo a good investment in 2026. For how reserves and special assessments can affect your loan approval, see why buying a condo in Chicago just got so much harder. This applies across the North Side, from vintage walk-ups in Lakeview and Lincoln Square, where repairs are often split among a handful of owners, to the lakefront high-rises in Edgewater and Uptown, where one project can involve hundreds of units.
Yes, in most cases. Under the Illinois Condominium Property Act, the board can adopt a special assessment at a properly noticed, open board meeting. Owners can force a vote only if total assessments for the year would exceed 115% of the prior year, and emergency or legally required repairs skip that step.
No. A properly adopted special assessment is owed like any other assessment. Unpaid amounts can become a lien on your unit, and the association can pursue collection, including an eviction action. If the payment schedule is a problem, talk to the board or management company early.
Under the standard Multi-Board contract, the seller pays any special assessment confirmed before the Date of Acceptance. If one is proposed between acceptance and closing, the buyer and seller have three business days to agree on who pays, or either one can cancel. Your attorney can negotiate different terms.
Read the 22.1 disclosure, which lists expected capital expenditures for the current fiscal year and the next two years, along with the reserve fund balance. Then read the board meeting minutes, where upcoming projects, bids, and assessment discussions usually show up first.
No. If the project is completed, paid for, and the building is now in better condition, that may be positive. The bigger concern is an unfunded project that everyone knows is coming but no one has figured out how to pay for.
Yes. Large special assessments, weak reserves, major repairs, or deferred maintenance can affect how a lender views the building. Some building issues can make a condo harder to finance, especially if the association is underfunded or dealing with major unresolved repairs.
A special assessment changes the math on a condo sale for both sides. If you are selling, I can help you figure out how to handle it before a buyer finds it in the documents. If you are buying, I help you review the building documents so you understand what has already been approved, what may be coming, and how it could affect your budget, financing, and resale later.
Start with my Chicago condo specialist page, or schedule a complimentary and confidential consultation here. You can also call or text me directly at 773.719.0989.
This post is for general informational purposes only and is not legal or financial advice. Legal information is based on the Illinois Condominium Property Act and the Multi-Board Residential Real Estate Contract at the time of research, deemed reliable but not guaranteed. Your condo declaration and bylaws may add rules of their own. Always review condo documents and contract terms with your real estate attorney.
Dee Savic is a Realtor with Baird & Warner, a 24+ year real estate professional, and a 27+ year Chicago resident with 300+ closed transactions. She helps condo buyers and sellers across Chicago's North Side, including Lakeview, Lincoln Park, Lincoln Square, Ravenswood, Andersonville, Uptown, and Edgewater.
Dee Savic
Realtor® | Baird & Warner
4553 N. Lincoln Ave, Chicago, IL 60625
773.719.0989
[email protected]
deesavic.com
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