What are the Average HOA Fees for a Condo Association in Chicago?

Before buying into a homeowner’s or condo association in Chicago, it’s essential to understand the full cost of living in the community. One monthly expense that should not be forgotten is HOA fees. 

While monthly fees will vary depending on the HOA’s amenities, the building’s location, age and other factors, the average monthly assessment Chicago owners should expect to pay is $300-$400.

Fees and assessments help cover the cost of shared property and amenities, so the more amenities an HOA has to offer and the better its location, the higher the fees will be

Who Determines HOA Fees?

Annual HOA fees are set by the condo association’s board. The board calculates each owner’s assessment amount for the upcoming year based on the annual budget. The biggest factors the board uses in establishing the following year’s budget are the HOA’s projected operating expenses and the amount it needs to maintain in its reserves. 

For most HOAs, the primary income source is through annual member assessments. To determine fees, board members take all their expenses and divide them proportionally among unit owners. The resulting amount is your HOA assessment. Worth noting, there is a limit to how much condo association assessments can increase in Illinois and that number is 15%.

What Do HOA Fees Cover?

Association fees cover the costs of maintaining and improving common areas of the community and its amenities. Examples of those expenses include:

  • Landscaping and seasonal property expenses
  • Common area maintenance
  • Insurance dues
  • Shared amenities such as the pool, fitness center, parking lot and other amenities
  • Common area utility and energy expenses
  • Funding the reserve budget 

Condo associations must budget for current and future repairs, maintenance and capital improvement projects, and the way they fund these items is through HOA fees.

If you have questions or concerns about your association’s fees, contact the board and review your HOA’s financial documents, budget and reserve study. Illinois condo board members are required to act as fiduciaries and make decisions based on the best interests of the entire community. 

To learn more about condo association management in the greater Chicago area, please contact us at First Community Management. 

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