A Board Member’s Checklist, Illinois Condominiums & HOAs
Assessments are how a community association pays its bills. When an owner stops paying, the shortfall falls on the other owners. The longer an account ages, the harder it is to collect. Illinois law gives community associations strong tools to collect unpaid assessments, including seeking possession of the delinquent owner’s unit, but only if the board follows the statutory process exactly. Acting promptly ensures that Board members fulfill their fiduciary duties to all members of the association and increases the likelihood of a quicker financial recovery.
“Assessments are the lifeblood of a community association. Board members have a fiduciary duty to collect assessments. Boards should consult with their legal counsel, act swiftly, and take the appropriate legal steps to recover unpaid assessments from delinquent unit owners.”
Illinois law requires condominium associations and many common interest community associations to have a collection policy. Even if a community association is not legally required to have a collection policy, it is still best practice and helps the collections process operate seamlessly and uniformly, rather than allowing assessments to go delinquent for years on end.
The Condominium Property Act, Eviction Act, and most governing documents allow the association to recover reasonable fees and costs of collection (765 ILCS 605/9.2 and 735 ILCS 5/9-111), but the language in your documents matters. Amend the declaration if it is unclear or outdated.
The balance owed should be easy to verify. Disputed or messy ledgers slow collection and weaken the association’s position.
Late fees, interest, fines, attorney’s fees, and costs are part of what keeps the burden on the delinquent owner rather than the paying owners.
The attorney confirms the owner of record, mailing address, bankruptcy status, and balance, and then sends a demand setting a deadline to pay or dispute. Most accounts resolve at this stage.
The Notice and Demand for Possession is required under the Illinois Code of Civil Procedure before an eviction action can be filed, and it provides the owner with one more opportunity to pay or dispute the claim.
Under the Eviction Act, the association can obtain possession of the unit and a judgment for the unpaid assessments, court costs, and attorney’s fees. Eviction is generally faster and cheaper than foreclosure.
Illinois collections are statute-driven, and a defective notice can undo months of work. An attorney keeps the process compliant and positioned to recover fees.
Illinois collection deadlines depend on applicable statutory provisions, the community association’s governing documents, the notices already served, the owner’s status, and the remedy the board chooses. Different provisions govern condominiums and common interest communities.
Do not rely on a general checklist to calculate a legal deadline. Have the association’s specific dates and documents reviewed by counsel.
A payment plan can be a good outcome. It should be documented, consistent with your policy, and approved by the board, not improvised on an account-by-account basis.
$5,000
in unpaid assessments collected in full after the first court hearing
A large HOA, consisting of over 500 homes, came to us for assistance in collecting approximately $5,000 in unpaid assessments from a delinquent owner. We prepared and served the owner with a 30-day Notice and Demand for Possession. The owner still refused to make payment. We then prepared and filed an Eviction Complaint against the owner. After the first court hearing, the owner agreed to make full payment of all amounts due and owing, and the case was resolved.
Example based on an actual matter; details changed for privacy. Past results do not guarantee a similar outcome. Every matter depends on its particular facts, documents, claims, and applicable law.
Collections is handled in flat-fee stages, so the board approves each step’s cost in advance. Most accounts resolve early, before the more expensive litigation steps. Court and service fees are billed separately, and a contested matter beyond these stages is billed hourly.
| Collection step | Typical flat fee |
|---|---|
| Initial demand letter | $400 |
| Statutory 30-Day Notice & Demand for Possession | $250 |
| Complaint for Possession & Unpaid Assessments (Eviction) | $750 |
Under the Condominium Property Act, Eviction Act, and most associations’ governing documents, associations are entitled to seek reimbursement of their reasonable attorney’s fees and costs of collection from the delinquent owner.
A promise to pay is not a payment plan. Counsel documents the arrangement, keeps it consistent with your written collection policy, and preserves the association’s remedies if the owner stops paying again.
Many declarations and bylaws allow it, and the Condominium Property Act and Eviction Act authorize reasonable fees, but Illinois courts decide what’s reasonable, so recovery is not automatic.
The automatic stay can pause collection, and a lender’s foreclosure changes who owes what, including the six-month lien a third-party sale buyer owes. Both situations have deadlines, and counsel can protect what remains recoverable.
Do not wait. Accounts are most collectible early, while the owner still occupies the unit. Gather the ledger and governing documents and contact experienced community association counsel.
Board members are volunteers, but every month a delinquency goes unaddressed, the paying owners carry the cost. A prompt, statutorily compliant collection process can help the board:
Before writing off a delinquent account or letting another month go by, schedule an Illinois collections review with Hirzel Law.
This material is provided for general informational purposes and is not legal advice. Legal rights and deadlines depend on the particular facts, governing documents, contracts, claims, and applicable law.