Unpaid assessments affect all types of community associations in Illinois, including homeowners, townhome, and condominium associations. The owner’s non-payment of assessments can directly impact the Association’s ability to serve its members, maintain property values, and fund day-to-day operations such as maintenance, repairs, insurance, and landscaping.

In Illinois, many associations typically issue late fees when dealing with outstanding assessments, but that is not the only option.

Below, we outline a practical three-step guide for associations dealing with delinquent assessments — one that goes beyond simply issuing late fees.

STEP ONE: One of the most effective strategies is communication. Engaging in communication with the owner before the account becomes severely delinquent can save both parties time and money.  When owner accounts fall behind, early outreach, such as a courtesy reminder letter or email, although not required, can often resolve the issue without escalation. Maintaining detailed records of notices and communications strengthens the Association’s position if legal action becomes necessary.

STEP TWO: Payment plans. Not all owner delinquencies involve the owner’s unwillingness to pay; many delinquencies deal with temporary financial setbacks. The Association’s ability to offer a structured short-term payment plan can allow the Association to quickly and efficiently recover lost revenue and reduce legal costs. A payment plan agreement should be written, set clear terms and deadlines, and be signed by the owner.

STEP THREE: If the Association has attempted to resolve the owner’s delinquency by following steps one and two, and all efforts have failed, then the Association should consider issuing a formal demand letter. If the owner fails to pay the assessments in full after proper notice and demand, the Association may pursue formal eviction. In most situations, Illinois law and the Association’s governing documents allow for the recovery of reasonable attorney’s fees and costs incurred in collecting unpaid assessments.

We regularly assist associations in issuing formal demands and can serve as a reliable resource, as we prioritize early resolution strategies that maximize recovery and reduce the time and expense associated with litigation.

Delays in enforcement can often reduce the likelihood of recovery, making it critical for associations to act promptly. However, the goal is not just to collect, but to do so efficiently, fairly, and in a manner that supports the long-term financial health of the community.

For more information, contact Tressler HOA Law attorney Katerina Tsoukalas-Heitkemper at kheitkemper@tresslerllp.com. For more information about this article, contact Sayra V. Contreras at scontreras@tresslerllp.com.

About the Author

Sayra V. Contreras is an associate attorney working in the HOA Practice Group. Sayra concentrates her practice in litigation with a focus on representing condominium associations and common interest community associations in areas such as rule enforcement, interpretation of governing documents, review and negotiation of contracts, and collection of assessments. Click here to read Sayra’s full attorney bio.