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Condominiums & ownership

Distinguishing a condominium association from a neighborhood homeowners association

Understand the differences between condo boards and HOAs. Manage your obligations by knowing the distinct legal powers of each association type in Illinois.

By SQFT IO · Published · 2 min read

The short answer

The primary difference lies in the source of authority. A condominium association is strictly governed by the Illinois Condominium Property Act, which mandates specific reserve funding and common element management. A neighborhood homeowners association (HOA) is typically organized under general corporate law, focusing on exterior aesthetic compliance and neighborhood common areas rather than structural unit elements.

Scope of Authority

Condo associations have power over structural parts of the building and common elements as defined by the declaration. HOAs generally govern the use and appearance of lots and neighborhood-wide amenities.

Decision Worksheet: Check if your association has a Declaration filed under the Condominium Property Act. If it does, the association must follow the Act's strict financial and procedural requirements.

Maintenance and Reserves

Condo associations are required by law to provide for capital reserves unless a vote waives this. HOAs may not have identical statutory reserve requirements, leading to different financial risk profiles.

Hypothetical Example: If you are evaluating a property, compare the reserve study of an HOA against a condo association's statutory financial reporting to understand your future assessment risk.

Enforcement Powers

Condo associations have specific statutory powers to record liens for unpaid expenses and pursue eviction. HOA enforcement powers are defined by the association's own declaration and bylaws.

Action: Review the 'default' provisions in your association’s governing documents to see how they handle late fees and common expense defaults.

Common Elements vs. Association Property

In a condo, common elements are part of your property ownership interest. In many HOAs, the common area is owned by the association itself, not by the individual homeowners.

Ask a Professional: Inquire with the association manager whether the common areas are titled to the individual unit owners (common elements) or to the association.

Checklist

  • Request the association's declaration document.
  • Check if the association is registered under the Condo Act.
  • Review the association’s rules regarding capital reserves.
  • Compare current assessment levels to the services provided.
  • Confirm if the association has lien authority over your unit.

Common questions

Do I have the same rights to view association records in an HOA?

Rights vary by the association’s own bylaws. In a condo association, the Act provides specific rights. In an HOA, check your corporate bylaws for disclosure provisions.

Can an HOA change their rules as easily as a condo board?

Both require a formal amendment process. Condominium associations must follow the procedural requirements of the Act, while HOAs follow procedures outlined in their specific governing declarations.

Sources

  1. CFPB — Closing Disclosure explainerChecked October 12, 2026
  2. Illinois Residential Real Property Disclosure ActChecked October 12, 2026
  3. Illinois Condominium Property Act — 2025 editionChecked October 12, 2026
  4. 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.

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