As spring approaches, condo associations begin preparing for one of the busiest times of the year for property maintenance. Landscaping, exterior repairs, and building system servicing often ramp up quickly. Before the work begins, condo boards should review their vendor contracts to ensure services, timelines, and expectations are clear.

• Review the Scope of Work: Every vendor contract should clearly define the services being provided and how often they occur. Whether it’s landscaping, janitorial work, or mechanical maintenance, a detailed scope helps prevent confusion about what is included and avoids unexpected charges.
• Check Contract Terms and Renewal Dates: Many vendor agreements include automatic renewal clauses. Boards should confirm contract end dates and cancellation notice periods so they have time to renegotiate pricing or evaluate other vendors if needed.
• Confirm Insurance Coverage: Vendors should maintain appropriate insurance, including general liability and workers’ compensation. Boards should ensure certificates of insurance are current and that the association is listed as an additional insured when required.
• Review Pricing Provisions: Contracts should also outline how pricing is structured and whether cost increases are allowed during the contract term. Understanding these clauses helps boards plan their budgets and avoid surprises.

If your association is in need of routine maintenance or major repairs this spring, Condoly can connect you to qualified vendors who want to help! Register and source bids for free on the app.

Spring is around the corner! It's time to begin planning for major capital repairs and deferred maintenance that needs to be completed in the warmer months.

If you have major anticipated projects but inadequate reserves, you may be putting off expensive capital repairs because you don't want to hit owners with a huge special assessment. But prolonging needed maintenance leads to higher costs and potential damage to your common elements. Your association may be eligible for a loan so that you can complete the work now and allow owners to pay it off over time.

Join the Condoly Community on Skool on Wednesday, March 11th at 6:30 for "Loans for Capital Repairs" Training

Condoly's guest lender will walk you through the loan application process for condominium associations. You'll learn about the documentation required to apply, the criteria for approval and how the board approves a loan and special assessment to cover payments.

Date and Time

Wednesday, February 25th
6:30 - 7:30 pm
Virtual

How to Register

To attend, you must join the Condoly community on the Skool platform. Webinar access information is provided on the community Calendar.

Join the Condoly Community on Skool

Source Bids for your Capital Repair projects on the Condoly app!

As of December 24, 2025, the United States Postal Service (USPS) updated its rules regarding postmarks. The clarification states that a postmark generally reflects the date an item is first processed by USPS, not the date it is deposited in the mail.

What does this mean in practical terms?

A letter dropped in the mail on January 1 may not receive a postmark until January 2, or later, depending on when USPS processes it. For community associations that rely on mailed notices to meet specific timing requirements, this distinction could have important implications. Many condominium and homeowner association governing documents calculate notice deadlines based on when a notice is “mailed” or “postmarked.” With this updated clarification, boards should not assume those two dates are the same. Delays between mailing and processing could affect compliance with required notice periods for meetings, elections, rule changes, or other official actions.

Board members should review their association’s governing instruments to determine whether current notice practices remain compliant.

This change also reinforces the growing importance of electronic notice provisions. Associations that have adopted electronic delivery options may reduce uncertainty tied to mail processing timelines. Boards may want to make another push encouraging owners to opt into electronic notice, helping ensure timely delivery while minimizing reliance on traditional mail.

Need Help Remaining in Compliance?

Haus Financial Services focuses on legal compliance for our clients. If you are looking for management support for your small associations that ensures financial stability, legal compliance and transparency, get in touch for more information! 

Tax season is officially underway, and for Chicago condo board members, now is the time to ensure your association’s financial records are organized and ready for filing. Understanding deadlines, filing requirements, and key tax considerations can help your association remain compliant and avoid unnecessary penalties.

The federal tax filing deadline for most condo associations is April 15 (for calendar-year associations). Filing on time is critical, as late filings can result in penalties and interest charges. Many associations work closely with their CPA or property management company to prepare and file returns electronically, which helps streamline the process and maintain proper documentation.

Understanding Association Tax Filing Requirements

Condo associations are required to file a federal tax return annually, even if they are nonprofit corporations. Most associations file one of the following:

• Form 1120-H (U.S. Income Tax Return for Homeowners Associations), which offers a simplified method of filing but applies a flat tax rate to non-exempt income.
• Form 1120 (standard corporate return), which may provide tax advantages in certain situations but involves more detailed reporting.
• Form IL-1120 (Illinois Corporation Income and Replacement Tax Return), required if your association has federal taxable income.

Determining which form is most beneficial depends on your association’s revenue sources, including assessments, reserve interest income, rental income from common elements, or other non-dues revenue streams. This is an important discussion to have with your association’s tax professional.

Key Financial Documents to Prepare

To file accurately and efficiently, board members should ensure the following records are organized:

• Year-end financial statements
• Balance sheet and income statement
• Documentation of reserve accounts and interest earned
• Records of special assessments or capital improvement projects
• Vendor payment records and 1099 filings (if applicable)

Maintaining clean and consistent bookkeeping throughout the year makes tax season significantly easier and supports transparency for unit owners.

Property Taxes and the Association

While individual unit owners pay property taxes on their units, associations may have tax obligations related to:

• Taxable common areas (if applicable)
• Commercial units owned by the association
• Parking units or storage units held in the association’s name

Board members should confirm whether any association-owned property requires separate property tax filings or payments.

Good Governance During Tax Season

Tax season is also a good time for boards to:

• Review reserve funding strategies
• Evaluate long-term capital planning
• Confirm compliance with federal and Illinois corporate requirements
• Ensure annual reports with the State of Illinois are filed and up to date

Proper tax filing is not just about compliance — it’s part of responsible financial stewardship.

Taxes don’t exist in a vacuum; they are closely tied to your association’s overall financial health. From reserve planning to long-term capital improvement strategies, strong financial guidance helps boards make informed decisions that protect both property values and homeowners’ investments.

Learn how Haus Financial Services supports Chicago condo associations and board members with financial reporting and compliance requirements.