Comparing a recurring assessment with a special assessment
Understand the difference between regular condo assessments and special assessments in Illinois with this essential guide for owners and buyers.
The short answer
Recurring assessments fund the annual operating budget, covering routine expenses like maintenance and utilities. Special assessments are non-recurring, additional charges levied to pay for significant capital expenditures or unexpected major repairs not covered by regular budget reserves. Both are mandatory obligations that create liens against your unit if they remain unpaid by the owner.
Understanding Recurring Expenses
Your monthly association dues are calculated based on your ownership percentage of the common elements. These funds pay for day-to-day operations and reserves for deferred maintenance. Failing to pay these on time results in personal financial risk, as the association can record a lien against your property.
Worksheet: How do your last 12 monthly statements, divided by your unit's square footage, compare to determine your cost per square foot for basic operation?
Identifying Special Assessments
Special assessments occur when the board identifies a project that the existing budget or reserve fund cannot accommodate. These are one-time or installment-based fees. Because these can significantly impact your cash to close, verify if any are currently approved or discussed in upcoming meeting minutes.
Worksheet: What is the current annual budget line item labeled 'Reserves,' and how does it inform your assessment of special assessment risk?
Distinguishing Funding Sources
Regular assessments are predictable, while special assessments are reactive. When a major project, such as a roof replacement, exceeds reserve capacity, the board holds a vote. Owners must pay these charges regardless of whether they voted in favor of the project.
Example: If the board approves a $5,000 elevator repair and your ownership share is 2%, you are personally responsible for a $100 special assessment.
Legal Implications for Owners
In Illinois, association boards have the legal authority to enforce payment through liens. This priority is high, often sitting above other encumbrances except for property taxes. Always confirm with the management office that there are no pending or active assessments before listing your unit.
Worksheet: How can a 'paid assessment letter' from the management company confirm your account status is current before you finalize a sale agreement?
Checklist
- Review the last three years of board meeting minutes.
- Check the current annual budget for reserve fund levels.
- Ask the management company about any planned capital projects.
- Confirm if any special assessments are currently active.
- Request a statement of account for your specific unit.
Common questions
Can I refuse to pay a special assessment if I disagree with the project?
No. Under the Illinois Condominium Property Act, once a valid assessment is levied by the board, all unit owners are obligated to pay their proportionate share.
Does the board have to notify me before voting on an assessment?
The board must provide notice of meetings and disclose budget updates. Consult your association bylaws and the Illinois Condominium Property Act for specific notification timelines.
Sources
- CFPB — Closing Disclosure explainerChecked October 12, 2026
- Illinois Residential Real Property Disclosure ActChecked October 12, 2026
- Illinois Condominium Property Act — 2025 editionChecked October 12, 2026
- SQFT IO — Listing plans and termsChecked October 12, 2026
This guide is general educational content from SQFT IO, prepared with AI assistance. It is not legal, tax or loan advice. Talk with a licensed attorney, tax professional or lender about your situation. SQFT IO Illinois license 478.027617.