Condo Living Made Easy

As a condo board member, you play a critical role in maintaining the value, safety, and overall well-being of a community. But whether you're newly elected or a long-time volunteer, it’s easy to feel overwhelmed by the legal, financial, and operational responsibilities that come with the job. Here’s a breakdown of the basic responsibilities every board member of an Illinois condominium association should understand.

Fiduciary Duty to the Association: Board members have a fiduciary duty to act in the best interest of the association and its owners. This means making informed decisions, avoiding conflicts of interest, and managing funds responsibly.

The Illinois Condominium Property Act (ICPA) and your governing documents (like the Declaration and Bylaws) lay the foundation for these duties. Failing to uphold them can lead to legal liability.

Managing Finances & Collecting Assessments: One of the most important responsibilities is preparing and overseeing the annual budget and collecting assessments. Boards must:

• Ensure assessments are billed and collected on time
• Pay association expenses (maintenance, insurance, utilities, etc.)
• Maintain adequate reserves for capital repairs
• Pursue delinquent owners through proper legal channels

If assessments go unpaid or reserves are underfunded, the whole building can suffer and sometimes land on a lender’s “Do Not Lend” list.

Maintenance & Repairs: Boards are responsible for maintaining the common elements of the property—hallways, elevators, roofs, landscaping, plumbing, and more. That includes:

• Scheduling regular maintenance
• Addressing emergency repairs quickly
• Planning ahead for major projects (roof replacements, facade repairs, etc.)
• Deferred maintenance not only frustrates residents, it can reduce property values and lead to costly special assessments.

Enforcing Rules & Governing Documents: The board must enforce the rules and regulations outlined in the association’s governing documents fairly and consistently. This includes:

• Resolving disputes between neighbors
• Managing noise, pet, or parking violations
• Updating rules as needed (with proper owner input and legal review)
• Consistency in enforcement helps preserve harmony and protect the association from legal risk.

Recordkeeping & Transparency: Board members are custodians of the association’s records. This means keeping accurate documentation of:

• Meeting minutes
• Budgets and financial reports
• Contracts and insurance policies
• Owner communications

Transparency builds trust. Unit owners have the right to review many of these records, and boards must be responsive to reasonable requests.

Educating Themselves and Seeking Help: Illinois law encourages board members to educate themselves on their roles. It’s also smart to seek help when needed—from attorneys, accountants, engineers, and management professionals. No one expects volunteer board members to know everything—but they do expect responsible governance.

Serving on a condo board is a big responsibility, but it doesn’t have to be overwhelming. When board members understand and embrace the basics (financial oversight, maintenance, rule enforcement, and transparency) they create a stronger, more stable community for everyone.

Learn more about individual board roles from our Board Responsibilities Made Easy video. (CCR Members Only)

If you would like more support, Haus Financial Services provides expert guidance and financial management for small condo associations in Illinois. Whether you need help collecting assessments, creating a budget, or understanding your board’s legal obligations, we’re here to support you.

If you serve on the board of a condominium association in Illinois, collecting unpaid assessments from unit owners is not just good financial practice, it’s a legal obligation. Under both fiduciary duty principles and the Illinois Condominium Property Act, board members must take timely and effective action to ensure assessments are paid.

As a board member, you are a fiduciary. This means you’re legally bound to act in the best interests of the association and its members. One of the most critical responsibilities you carry is managing the association’s finances, which includes the timely collection of assessments. When these assessments go unpaid, the financial stability of the entire community can be put at risk including; delaying repairs, underfunding reserves, or affecting service contracts.

The Illinois Condominium Property Act (ICPA) explicitly mandates that associations must collect assessments from unit owners. This statutory requirement reinforces the fiduciary responsibility of the board and gives associations legal standing to take action when assessments aren’t paid. When an association’s board fails to pursue delinquent assessments can lead to serious consequences such as;

• Legal Action: Unit owners may sue the board for breach of duty if assessments aren’t collected.
• Third-Party Claims: Contractors and service providers who aren’t paid may take action, especially if lack of funds is due to uncollected assessments.
• Community Impact: When owners don't pay their share, everyone else needs to pay more to make up the shortfall.

In the state of Illinois, condo associations have several tools at their disposal to recover unpaid assessments:

• Filing a Lien: Once an owner falls behind, their unit becomes subject to a lien. This can ultimately be foreclosed upon.
• Lawsuits: Associations can file a lawsuit against a delinquent owner, potentially resulting in a personal judgment.
• Forcible Lawsuit/Eviction: Under Illinois law, associations can pursue possession and eviction for non-payment, gaining the right to rent the unit to collect balances owed or requiring existing tenants to pay rent to the association instead of the owner. This is a preferred approach, especially when the unit is still subject to a bank mortgage. 

Delays in addressing delinquencies only make them harder to collect and increase the financial risk to the community. Timely action is key to maintaining the health of your association’s budget and protecting all unit owners from having to cover shortfalls.

You Don’t Have to Go It Alone

Collecting unpaid assessments can be complex and time-consuming, especially for smaller condo associations with limited resources. That’s where Haus Financial Services can help. Our team specializes in financial management for small condo associations and offers expert coordination of collection efforts. We help boards navigate legal obligations, preserve community harmony, and protect the association’s financial future.

If your association is facing challenges with assessment collection, reach out to our team to learn how we can support you.

The Illinois Unclaimed Property Act, originally enacted in 1961 and significantly revised in 2017, serves as a consumer protection law that mandates how businesses and organizations in Illinois handle and report abandoned or unclaimed property. For condominium associations in Chicago, this legislation is particularly pertinent, as it outlines specific responsibilities to ensure compliance and protect the rights of property owners.

What Constitutes Unclaimed Property?

Under the Act, unclaimed property encompasses various financial assets that have remained unclaimed by their rightful owners for a specified period. Common examples include:

• Uncashed refund checks
• Security deposits
• Overpayments
• Residual balances from foreclosures or evictions

For instance, if a unit owner overpays assessments or fails to cash a refund check and no contact is made for three years, the association is required to report and deliver those funds to the State of Illinois.

Condominium associations, regardless of their incorporation status, there are a number of obligated responsibilities including:

• Identify Abandoned Property: Regularly review financial records to detect any assets that may be considered unclaimed.
• Due Diligence: Before reporting, send written notifications—often referred to as "Due Diligence Letters"—to the last known address of the property owner, informing them of the unclaimed assets.
• Annual Reporting: File an annual report with the Illinois State Treasurer detailing the unclaimed property.
• Transfer of Property: After the due diligence process, transfer the unclaimed property to the State of Illinois, where it will be held until claimed by the rightful owner or their heirs.

Failure to adhere to these responsibilities can result in interest charges, penalties, and potential audits by the State Treasurer's office.

Navigating the financial and regulatory complexities of the Illinois Unclaimed Property Act can be daunting for many associations. That’s where Haus Financial Services comes in. As a trusted partner to Chicago condo associations, HausFS offers comprehensive financial management services, including:

• Regular account reconciliations to identify potential unclaimed assets
• Preparing and sending due diligence letters
• Managing annual reporting requirements
• Ensuring timely and accurate transfer of unclaimed funds to the State

Non-compliance with the Illinois Unclaimed Property Act can have significant repercussions for condominium associations, including:

• Financial Penalties: Associations may incur interest charges on the amount due and additional penalties for failure to report or deliver property.
• Legal Scrutiny: Non-compliance can lead to increased scrutiny or audits from the State of Illinois Treasurer’s office.

By understanding and fulfilling their obligations under the Act, condominium associations can avoid these pitfalls and ensure they are acting in the best interests of their members. The Illinois Unclaimed Property Act underscores the importance of diligent financial management within condominium associations. By proactively identifying unclaimed assets, conducting due diligence, and adhering to reporting requirements, associations can maintain compliance and uphold the trust of their community members.

If you are in need of more financial support, Haus Financial Services can help your association stay compliant, avoid costly penalties, and maintain transparent financial practices that build trust with your owners.

For more detailed information or assistance, associations can refer to the official Illinois Unclaimed Property Reporting Guidelines