HOA fees in Chicago: Costs, coverages, and more

What are HOA fees?

HOA fees in Chicago are regular payments made by owners to support the daily and long-term needs of their association. These fees are collected on a schedule written into the governing documents and typically appear as monthly assessments. Each association sets its own amount after reviewing its annual budget and expected operating costs. A board may adjust fees as costs rise, materials change in price, or new services are added to meet the community’s needs.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

What HOA fees cover

HOA fees in Chicago typically cover:

• Reserve fund contributions (25–30%): Money set aside for major future projects like roof or elevator replacements. Contribution levels are typically based on a reserve study, which analyzes the building’s components and estimates when repairs will be needed.
   
• Utilities (25–30%): Often one of the largest expenses, especially in older Chicago buildings with central heating; may include water/sewer, gas, and electricity for common areas.
   
• Maintenance and repairs (10–25%): Covers routine upkeep and unexpected issues involving plumbing, electrical systems, boilers, elevators, and general building repairs.
   
• Insurance (10–25%): Pays for the association’s master building policy, which can be a significant cost due to building age, size, and local risk factors.
   
• Management, legal, administrative costs (10–15%): Includes property management services, accounting, and any legal fees associated with governance or disputes. Learn more about average property management fees in Chicago.
   
• Landscaping (3–10%): Smaller portion of the budget except for buildings with extensive grounds. Snow removal is a predictable annual cost in Chicago.
   
• Miscellaneous and contingency (1–5%): Covers smaller operational expenses such as cleaning supplies, inspections, pest control, and minor improvements.

Average cost of HOA fees in Chicago

The average cost of HOA fees in Chicago often falls between $300 and $400 per month. Many mid-rise and courtyard associations report monthly fees around $300 to $450, while smaller buildings or vintage walk-ups may pay less when they share fewer systems.

High-rises with staffed entrances, multiple elevators, guest services, or broad amenity spaces can see fees rise above $500 per month. Costs may also increase when insurance rates shift or when a board adjusts reserve contributions to support upcoming repair projects.
 

Do you have to pay HOA fees in Chicago?

Homeowners must pay HOA fees in Chicago because these fees support the shared services and upkeep that keep the building running. Illinois HOA laws and the association’s governing documents explain how fees are set and when they are due. If payments fall behind, the association may add late charges, and longer delays can lead to a lien on the unit.

When fees are paid on time, the board can cover routine expenses and move forward with planned projects. Many communities partner with a property management company to send reminders, offer easy payment options, and help residents stay up to date.
 

Who sets the fees and assessments for the community association?

That’s the job of the board of directors, who are elected to handle the business decisions of the community. They work in tandem with the property management company to determine the financial needs for the neighborhood. The board sets the amount, what the fee covers, and when it’s due. They base each owner’s share on the amount of ownership the resident has in the association – typically determined by property square footage or percentage of ownership. The board also determines how often the charges should be paid. Monthly assessments are the most common arrangement, but some communities collect the fees on a quarterly basis or even once a year.

Though the board of directors makes decisions about ownership fees and assessments, they do not profit from the fees. These elected board members are unpaid volunteers who also pay the same assessments as other homeowners. In fact, most associations are set up as nonprofit organizations, and that indicates that the community does not generate a profit from the fees received. At the same time, it’s important that board members can describe where all the money goes, if they are questioned by homeowners.
 

Special assessments

When disaster strikes, or a large capital improvement must be undertaken, a one-time fee known as a special assessment may be levied to pay for the project. Once the costs for the project are determined by the contractor and project team, and financing is obtained, the board can divide the project costs by ownership percentage so each resident pays their share.

Just like other association fees, special assessment charges are mandatory to pay. If there is excess money left at the end of a special assessment project, the bylaws should state whether the remaining funds go into the association’s reserves or are refunded to homeowners.
 

Educate your homeowners

One of the most common questions asked by homeowners is, “What do I get for paying my assessment?” Some of the items are obvious — we can tell whether the snow is removed and when the new fitness room equipment is installed. But when people don’t understand what they are paying for, or if they feel that these services are not worth the price they are paying, it’s easy to become frustrated with yet another monthly bill. And when the assessments rise, as they usually do each year, people may forget that all of their other bills have risen, too.

Board members can ward off frustration with effective communication about how they are using the association funds. They can point out the value of ongoing maintenance and the efforts to maintain or increase property values. At budget time, boards can also remind residents how the budget was created and how each line item was developed. These efforts in transparency will build greater trust and goodwill between association leaders and residents.

To learn more about Chicago HOA fees and community association living, contact FirstService Residential, the property management leader in Illinois.