When a Chicago condominium association needs more money than its current budget provides, boards typically have two options: increase regular assessments or levy a special assessment.
Neither option is automatically right for every association. The best approach depends on why the association needs additional funds, how much is needed and whether the expense is ongoing or unexpected.
Beginning January 4, 2027, Fannie Mae will increase its minimum replacement-reserve allocation from 10% to 15% of an association's annual budgeted assessment income for projects reviewed through its Full Review process.
This isn't an Illinois law requiring every condo association to maintain 15% reserves. Rather, it is a mortgage-lending standard that can affect whether a condominium project qualifies for conventional financing.
Emergencies can happen without warning, from severe storms and power outages to water main breaks and other unexpected events. Having a plan in place helps condo associations respond quickly, protect residents, and minimize property damage. Here are four key areas every association should address.