Illinois HOA Assessment Limits

Section 1 — Overview: How assessment authority and limits work in Illinois

Illinois doesn't impose a hard cap on how much an HOA or condo board can raise assessments. Instead, the state regulates increases through two parallel statutes — and both use the same mechanism: a 115 percent petition-and-reject trigger, not a flat ceiling.

Condominiums come under the Condominium Property Act, 765 ILCS 605. Under Section 18(a)(8), the 115 percent figure activates an owner challenge process: a board can adopt a budget above that level, but owners holding 20 percent of the votes can force a membership meeting, and the budget or assessment fails only if a majority of total votes at that meeting are cast to reject it.¹

Non-condominium communities — planned developments, townhome associations, and similar common interest communities — fall under the Common Interest Community Association Act (CICAA), 765 ILCS 160. Section 1-45 runs the same 115 percent mechanism, but CICAA exempts associations of 10 units or fewer, or those with annual budgeted assessments of $100,000 or less, unless they opt in.^2,3

Special assessments — what the statutes call "separate assessments" — count in the same calculation. The 115 percent test adds all regular and separate assessments payable in the current fiscal year and measures them against the prior year's total.¹

On the national spectrum, Illinois sits in the middle of three approaches. California imposes hard caps: Civil Code Section 5605(b) bars a regular assessment more than 20 percent above the prior year and limits aggregate special assessments to 5 percent of budgeted gross expenses — both without a member vote.⁴ UCIOA states — Alaska, Colorado, Connecticut, Delaware, Vermont, and Washington — use a ratification mechanism where an adopted budget stands unless owners vote to veto it at a noticed meeting. Illinois and Florida occupy the middle ground, using a 115 percent threshold tied to an owner-driven process: petition-and-reject in Illinois, a substitute-budget right in Florida. The sections below detail the authority to levy, the limits on increases, special-assessment handling, procedures in practice, recent legislative and judicial activity, and Illinois's national position.

Section 2 — The assessment framework

2A. Authority to levy and allocate assessments

In a condominium, the Condominium Property Act vests the board of managers with authority to prepare, adopt, and distribute the annual budget and to assess unit owners their proportionate shares of common expenses. The declaration sets each unit's share and the allocation formula.¹ When an owner doesn't pay, unpaid common expenses become a lien on the unit under Section 9 — a lien that ranks ahead of most other encumbrances, except taxes and prior recorded encumbrances, with a limited priority window against foreclosure purchasers.⁵

For non-condominium communities, the structure differs in a way that matters operationally. CICAA regulates the budget process and authorizes certain separate assessments — but CICAA does not itself grant a board the power to levy regular common-expense assessments. That authority must come from the declaration. Section 1-20(a) provides that the administration of every property is governed by the declaration and bylaws or operating agreement, and the statute defines "common expenses" as those "lawfully assessed" by the association.⁶

The practical result: in both settings the board sets assessments through the budget, but the allocation formula — and, for common interest communities, the underlying authority to levy regular assessments — lives in the declaration.

2B. Limits on regular assessment increases

The 115 percent mechanism works identically under both statutes. If an adopted budget or any separate assessment would push the sum of all regular and separate assessments payable in the current fiscal year above 115 percent of the sum payable in the preceding year, owners holding 20 percent of the votes can deliver a written petition forcing a membership meeting. The budget or assessment survives unless a majority of the total votes at that meeting are cast to reject it.^1,2

The procedural details differ. For condominiums, Section 18(a)(8)(ii) gives owners 21 days after board action to file the petition; the board then has 30 days to call the meeting. Emergency assessments and those mandated by law are exempt.¹ Condominium boards must also deliver the proposed annual budget to owners at least 25 days before adoption.¹

For common interest communities, Section 1-45(c) sets a tighter 14-day petition window — though the 30-day meeting requirement is the same. Section 1-45(a) also requires the board to deliver the proposed budget to members between 30 and 60 days before adoption, with a breakout of the portions intended for reserves, capital expenditures or repairs, and real estate taxes, plus a prior-year summary of receipts, common expenses, and reserves.²

One important point: the 115 percent figure is a trigger, not a cap. A board may adopt above it. The declaration may impose additional or stricter limits. And Illinois courts have held that assessments levied without following the authority and procedures in the governing documents may be uncollectible.⁷

2C. Special assessments, separate assessments, and emergencies

Separate assessments — commonly called special assessments — run through the same 115 percent calculation as regular assessments, because the test sums all regular and separate assessments payable in the year.¹

Under the Condominium Property Act, a separate assessment that pushes the running year-over-year total past 115 percent triggers the same petition-and-reject process. Emergency assessments and those mandated by law are exempt. Assessments for additions or alterations to the common elements that weren't in the budget require approval of two-thirds of all unit owners.¹

CICAA gives common interest community boards parallel powers. Under Section 1-45(e), the board can adopt emergency or legally required separate assessments without member approval. Under Section 1-45(f), it needs approval of a simple majority of total members at a meeting called for that purpose to levy assessments for additions or alterations to common areas.² CICAA defines an emergency in Section 1-45(e) as "a danger to or a compromise of the structural integrity of the common areas or any of the common facilities of the common interest community," and extends that definition to "a danger to the life, health or safety of the membership."²

Operationally: routine increases proceed unless owners petition and then reject. The board must track the cumulative current-year figure against the 115 percent line as it acts on budgets and separate assessments — and it must respect any stricter limits the declaration sets.

Section 3 — Assessment limits and procedures in practice

A. Regular assessment increase procedure

For condominiums, the board adopts the annual budget after delivering it to owners at least 25 days in advance. If the year-over-year total exceeds the 115 percent threshold, the petition-and-reject process applies. (765 ILCS 605/18)¹

For common interest communities, the board delivers the proposed budget to members between 30 and 60 days before adoption — with the reserve, capital, and real estate tax breakout and a prior-year summary. The same 115 percent process then applies. (765 ILCS 160/1-45)²

The 20 percent petition threshold and the majority-reject standard are identical under both statutes. The petition window differs: 21 days for condominiums, 14 days for common interest communities.^1,2

B. Special assessment procedure

A separate assessment in a condominium counts toward the 115 percent calculation. If the threshold is crossed, the petition-and-reject process applies, and the board must provide notice of the adopting meeting. Emergency assessments and those mandated by law are exempt. (765 ILCS 605/18(a)(8))¹

A common interest community board can adopt emergency or legally required separate assessments without member approval. For additions or alterations to common areas, the board needs a majority vote of total members at a meeting called for that purpose. (765 ILCS 160/1-45(e), (f))²

Common-element additions or alterations in a condominium not included in the budget require a two-thirds vote of all unit owners. (765 ILCS 605/18(a)(8))¹

C. Caps, ceilings, and override mechanisms

Illinois uses a 115 percent petition-and-reject trigger — not a flat statutory cap. There is no fixed percentage ceiling on what a board may adopt. (765 ILCS 605/18; 765 ILCS 160/1-45)^1,2

The override is owner-driven. A petition from 20 percent of the votes forces a membership meeting; only a majority of the total votes cast to reject the budget or assessment defeats it.^1,2

Emergency assessments and those mandated by law are exempt from the process under both statutes. (765 ILCS 605/18(a)(8)(iv); 765 ILCS 160/1-45(e))^1,2

D. Notice, documentation, and disclosure tied to assessments

Condominium boards must deliver the proposed annual budget at least 25 days before adoption and provide owners an annual itemized accounting of common expenses. (765 ILCS 605/18)¹

Common interest community boards must deliver the budget between 30 and 60 days before adoption, with a breakout for reserves, capital expenditures or repairs, and real estate taxes, plus a prior-year summary. (765 ILCS 160/1-45(a), (b))²

On resale, CICAA requires the board to make available to a prospective purchaser statements of unpaid assessments, anticipated capital expenditures, and the status of reserve funds. (765 ILCS 160/1-35(d))⁸

Section 4 — Recent legislative and judicial activity

A. Recent bills

The most significant assessment-related bill in the current legislative session would require associations with major shared components to conduct regular reserve studies. The bill remains in committee and has not been enacted, but it bears directly on assessments: reserve funding flows into the annual budget that drives the 115 percent calculation.

B. Recent appellate rulings

Illinois courts are not reshaping HOA law from the bench. What they are doing is reinforcing a consistent principle: a board's action is enforceable only when it follows both the statute and the declaration. Two recent rulings show what happens when it doesn't.

C. Active legislative debates

The most active assessment-related debate in the current session centers on mandatory reserve studies — HB 2563 and related proposals — which would change how reserve funding flows into the budget that drives the 115 percent calculation. Other 2025–2026 session proposals touching the budget and disclosure process, including board-training and records-fee bills, remained in committee at last review.

Section 5 — National positioning and related coverage

Illinois occupies the middle of a three-part national spectrum on assessment limits.

At one end are the statutory-cap states. California leads the group: Civil Code Section 5605(b) bars a regular assessment more than 20 percent greater than the prior year and limits aggregate special assessments to 5 percent of budgeted gross expenses — both without member approval.⁴

At the other end are the UCIOA ratification states — Alaska, Colorado, Connecticut, Delaware, Vermont, and Washington. In those states, an adopted budget is deemed ratified unless a majority of owners vote to veto it at a noticed meeting.

Illinois and Florida share the middle ground. Both use a 115 percent threshold tied to an owner-driven process. In Florida, a board budget exceeding 115 percent of prior-year assessments lets unit owners force a special meeting to consider a substitute budget — triggered by written request from 10 percent of voting interests within 21 days of adoption.¹¹ In Illinois, the mechanism is petition-and-reject.

For a multi-state operator entering Illinois, the key practical points: the board may adopt above 115 percent, but 20 percent of owners can force a ratification vote; and under CICAA, the authority to levy regular assessments comes from the declaration, not the statute. The Illinois Condominium and Common Interest Community Ombudsperson within IDFPR educates owners and boards and publishes resources — but the office does not adjudicate disputes.¹²

HOA Weekly's Illinois Assessment Limits coverage updates quarterly as the General Assembly and the Illinois appellate courts act. Dates and bill statuses should be verified against the primary sources cited here. Federal frameworks — including the Fair Debt Collection Practices Act, the Servicemembers Civil Relief Act, and the bankruptcy treatment of association debt — bear on Illinois assessment practice regardless of the state framework.

1. Illinois General Assembly, 765 ILCS 605/18, Condominium Property Act § 18(a)(6), (a)(8) (Contents of bylaws) ↩
2. IDFPR, Illinois Common Interest Community Association Act, 765 ILCS 160/1-45 (Finances), subsections (a)–(f) (as effective Jan. 1, 2024) ↩
3. IDFPR, Illinois Common Interest Community Association Act, 765 ILCS 160/1-75 (Exemptions for small common interest communities) ↩
4. California Legislative Information, Civil Code § 5605(b) ↩
5. Illinois General Assembly, 765 ILCS 605/9, Condominium Property Act § 9(g), (h) (Lien for common expenses) ↩
6. IDFPR, Illinois Common Interest Community Association Act, 765 ILCS 160/1-20(a) (administration governed by declaration) and 765 ILCS 160/1-5 (definition of "common expenses") ↩
7. Morgan's Orchard Lake Homeowners' Ass'n v. Morgan, 2022 IL App (3d) 220006-U (Ill. App. Ct. 3d Dist.), available via the Office of the Illinois Courts ↩
8. IDFPR, Illinois Common Interest Community Association Act, 765 ILCS 160/1-35(d) (Resale disclosures) ↩
9. Illinois General Assembly, Bill Status of HB 2563, 104th General Assembly (synopsis and actions, last action Apr. 17, 2026) ↩
10. Gunnison Commons, LLC v. Alvarez, 2024 IL App (1st) 232176 (Ill. App. Ct. 1st Dist. Aug. 23, 2024), published via the Office of the Illinois Courts ↩
11. Fla. Stat. § 718.112(2)(e) (2025) (substitute-budget mechanism for budgets exceeding 115 percent) ↩
12. IDFPR, Illinois Condominium and Common Interest Community Ombudsperson (mission to provide information; no authority to enforce or adjudicate) ↩