Collecting Delinquent Assessments in Illinois: What Every Board Member Needs to Know | Hirzel Law
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A Board Member’s Checklist, Illinois Condominiums & HOAs

Collecting Delinquent Assessments in Illinois: What Every Board Member Needs to Know

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Why is Assessment Collection Important?

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.”

Kevin HirzelKevin HirzelManaging Member, Hirzel Law, PLC

The Collections Checklist

Adopt a written collection policy

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.

Beginning January 1, 2027, a compliant written policy is required before an association can take legal action to collect. Hirzel Law prepares one for a flat fee. Learn more about the Illinois collection policy requirement.

Confirm your governing documents authorize recovery of attorney’s fees and costs

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 Amend the declaration if it is unclear or outdated.

Keep ledgers accurate and current

The balance owed should be easy to verify. Disputed or messy ledgers slow collection and weaken the association’s position.

Do not waive valid charges

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.

Send a demand letter early

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.

Serve the statutory 30-day notice

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.

File an eviction action if the account does not resolve

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.

Retain an experienced community association attorney

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.

Key Deadlines, Do Not Miss

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.

Important deadlines may involve:

  • Demand and statutory notice periods before eviction
  • Service requirements for the 30-day notice
  • The stay period after an order of possession is entered in an eviction case
  • Lien rights during pending mortgage foreclosure actions
  • Statutes of limitations on collection claims
  • Proof-of-claim deadlines when an owner files for bankruptcy
15%
of units 60+ days delinquent makes the entire project ineligible for Fannie Mae-backed mortgages (Fannie Mae Selling Guide B4-2.1-03)
$103.3 billion
in assessments U.S. community associations collect each year (Foundation for Community Association Research, 2025)
6 months
of assessments a third-party purchaser at a foreclosure sale owes under Illinois law, so long as the association takes the required collection steps
Schedule Your Collections Review or call (866) 394-4642

Warning Signs in Your Receivables

  • A delinquency list that grows quarter over quarter
  • Accounts aging past 60–90 days with no demand letter sent
  • Late fees or interest waived inconsistently, or side deals with individual owners
  • Governing documents without clear fee-recovery language
  • Ledgers the owner disputes or the manager cannot reconcile
  • An owner in bankruptcy without counsel involved, the automatic stay can pause collection, and proof-of-claim deadlines run
  • A first mortgage in foreclosure. Important to ensure collection action is taken to protect the right to collect 6 months of unpaid assessments from a third-party purchaser at a foreclosure sale

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.

In Practice

$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.

What This Costs

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 stepTypical flat fee
Initial demand letter$400
Statutory 30-Day Notice & Demand for Possession$250
Complaint for Possession & Unpaid Assessments (Eviction)$750

Who Ultimately Pays

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.

Frequently Asked Questions

Do we need an attorney if the owner says they’ll pay?

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.

Can we recover our attorney’s fees?

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.

What if the owner files bankruptcy or the lender forecloses?

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.

What should the board do if an account keeps aging?

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.

What will Hirzel Law need from our association?
  • Your governing documents (declaration / master deed and bylaws)
  • The delinquent owner’s ledger or account history
  • Your written collection policy, if you have one
  • The owner’s name and current mailing address
  • Copies of any notices already sent

Do You Need an Attorney?

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:

  • Recover the assessments, fees, and costs that the documents and statute allow
  • Serve notices that hold up; a defective 30-day notice can undo an eviction
  • Keep enforcement uniform and defensible
  • Navigate bankruptcies and lender foreclosures without losing what’s recoverable
  • Keep the burden off the owners who do pay

Before writing off a delinquent account or letting another month go by, schedule an Illinois collections review with Hirzel Law.

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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.