How to Legally Challenge Unreasonable HOA Special Assessments in Illinois

A special assessment is an unexpected, often massive bill levied by an HOA or condo board to cover expenses that the reserve fund cannot handle. For residents in Evanston, Oak Park, or downtown Chicago, receiving a notice for a $15,000 special assessment to fix a roof or upgrade an elevator can be financially devastating.

While boards have a fiduciary duty to maintain the property, they cannot simply write blank checks on the backs of unit owners without following strict statutory rules. In Illinois, unit owners have specific democratic rights to veto excessive assessments. This guide explains the legal thresholds, the distinction between emergencies and upgrades, and how finding an attorney through our US Lawyer Directory can help protect your financial stability.

The Legal Thresholds: The 115% Rule

The most important tool for unit owners fighting an assessment is found in the Condominium Property Act at 765 ILCS 605/18(a)(8)(iv). This law contains the famous '115% rule.'

If a board passes a special assessment (or regular dues increase) that causes the total assessments for the year to exceed 115% of the previous year's regular assessments, the unit owners have the right to challenge it. Upon receiving notice of the assessment, unit owners holding at least 20% of the voting rights have 21 days to submit a petition demanding a special meeting to vote on the assessment.

Emergency Structural Repairs vs. Cosmetic Upgrades

The 115% rule has a major exception: emergencies. If the special assessment is required for emergencies-defined strictly as immediate dangers to structural integrity, life, health, or safety (like a collapsing roof, a broken boiler in winter, or local code violations)-the board can levy the assessment regardless of the cost, and the owners have no right to veto it.

However, boards often try to disguise cosmetic upgrades as emergencies. Retiling the lobby in imported marble or upgrading the clubhouse furniture is not an emergency. If the board attempts to bypass the 115% rule for non-essential upgrades, you may have grounds for a lawsuit.

Fixed-Income Seniors Fighting Sudden Five-Figure Fees

Special assessments hit fixed-income seniors the hardest. Unfortunately, Illinois courts generally do not accept 'financial hardship' as a legal defense for not paying a validly passed assessment. If the assessment was passed legally, failure to pay can result in the HOA placing a lien on your unit and eventually foreclosing. Your only defense is to attack the procedural legality of how the assessment was passed.

Challenging Improper Board Voting Procedures

Even if an assessment is under the 115% threshold or is a true emergency, the board must still follow the law to pass it. The board must provide all owners with written notice of the meeting where the assessment will be discussed, usually 10 to 30 days in advance. In landmark decisions like Dedic v. Board of North Shore Towers Condominium Ass'n, 2018 IL App (1st) 171842 (IL Appellate Court 2018), Illinois courts have closely scrutinized whether boards adhere to statutory notice and voting requirements when imposing major separate assessments.

Dealing with Inherited Deferred Maintenance Liabilities

If you recently bought a condo, you might get hit with a special assessment for 'deferred maintenance' that the previous board ignored for 20 years. When purchasing, it is critical to request a 22.1 disclosure to see if special assessments are pending. If the board knew about a looming assessment but failed to disclose it during your closing, you might have a claim against the seller or the association for misrepresentation.

Step-by-Step Process to Challenge the Assessment

Time is of the essence if you want to invoke your veto rights.

Step 1: Draft and Circulate the 20% Petition

Within 21 days of the board passing the excessive assessment, you must gather signatures from unit owners representing at least 20% of the total voting interests. Serve this petition formally on the board president or property manager.

Step 2: The Veto Meeting

Once the petition is submitted, the board has 30 days to hold a special meeting. At this meeting, you must secure a majority vote of all unit owners in the association (not just a majority of those who show up) to successfully reject the assessment.

Step 3: Filing an Injunction

If the board refuses to hold the meeting, or if they falsely classify a cosmetic upgrade as a 'life-safety emergency' to bypass your petition, you must file for an injunction. If your condo is in Lake County, your attorney will file a verified civil complaint and emergency motion for injunctive relief electronically via Odyssey eFileIL in the Lake County Circuit Court, Waukegan to halt the collection of the assessment until a judge reviews the case.

How Much Does it Cost in Illinois?

Fighting an assessment requires weighing the cost of litigation against the cost of the bill.

How Long Does the Process Take?

The veto petition must be filed strictly within 21 days. If the issue moves to court, an emergency motion for a preliminary injunction can be heard by a judge in a matter of weeks to temporarily stop the billing. However, a full trial to determine if the board breached its fiduciary duty or violated the ICPA can take 1 to 2 years.

Frequently Asked Questions (FAQ)