Chicago Condo Budget Requirements

Establishing the annual budget is a big and stressful job for condo board members. Not only must they abide by the rules and regulations outlined in the Illinois Condominium Property Act (ICPA), but they must also adhere to the HOA’s governing documents and bylaws. Drafting a realistic budget while following all the requirements is a team effort. Here are some best practices to ensure you are meeting the condo budget requirements for your HOA.

Factors to Consider When Drafting Your Annual Budget
  • Short- and long-term needs of the association – Before the association can vote on a proposed budget, one must first be drafted. When making financial projections, you must account for the HOA’s short-term operating expenses as well as its long-term needs and obligations. 
  • Meeting notice requirements – Another requirement when adopting a new budget is to provide adequate meeting notice. Meeting notices, along with a copy of the proposed annual budget, must be distributed to all unit owners at least 25 days prior to the board meeting. 
  • Voting requirements – In order for a budget to be approved, board members must vote. While only the board may vote on the budget, all unit members get to decide who sits on the board. In order for a budget to pass, a quorum of the board must be present and the majority of members must approve it.

If you have questions about preparing your association’s annual budget or need help with any of your association management needs in Chicago, contact us at First Community Management. We offer full-service professional condo association management company for condos throughout Chicago.

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