Illinois HOA Collection Laws: What Homeowners Need to Know

Illinois HOA collection laws determine how homeowner associations and condominium associations can pursue unpaid assessments, late charges, fines, attorney fees, and other amounts owed by homeowners. The rules are not identical for every community: Illinois has separate statutory frameworks for condominiums and common interest community associations, and the association’s declaration, bylaws, and other governing documents can also affect collection rights.

For condominium associations, the Illinois Condominium Property Act provides a statutory lien for qualifying unpaid common expenses and certain related charges. For common interest community associations governed by the Common Interest Community Association Act, collection authority can depend more heavily on the governing documents and applicable statutory provisions. Illinois has also enacted new collection-policy requirements that take effect January 1, 2027.

Quick Answer: What has the Illinois HOA Collection Laws?

Illinois associations can generally pursue unpaid assessments through collection procedures authorized by state law and the community’s governing documents. Depending on the type of association, remedies may include late charges, attorney fees, a money judgment, a lien, or foreclosure-related proceedings. Condominium associations have specific statutory lien rights under 765 ILCS 605/9, while common interest communities require a separate analysis under the Common Interest Community Association Act and governing documents.

Important: “HOA” is often used broadly in Illinois. A condominium association and a non-condominium common interest community association may have different collection rights. Always identify the community’s legal structure before applying a particular Illinois collection rule.

Definition: What Is an HOA Collection?

HOA collection is the process an association uses to recover money that a homeowner legally owes to the association. Depending on the community and governing documents, the debt can involve regular assessments, special assessments, certain fines, interest, late charges, collection costs, or attorney fees.

Collection can begin with account notices and payment requests and potentially escalate to legal action, a judgment, lien enforcement, or foreclosure where legally authorized.

What Types of Money Can an Illinois HOA Collect?

The most common HOA-related debts include:

• Regular assessments
• Special assessments
• Common expenses
• Certain late charges
• Interest where authorized
• Certain fines
• Collection costs
• Reasonable attorney fees where authorized by law or governing documents
• Other amounts properly owed under the association’s governing documents

The exact amount an association can demand depends on the statutory framework, declaration, bylaws, rules, and the nature of the charge.

For condominium associations, Illinois law expressly addresses unpaid common expenses and certain related charges. Under 765 ILCS 605/9, qualifying unpaid common expenses and unpaid fines can become secured by a statutory lien, together with certain interest, late charges, reasonable attorney fees, and collection costs.

Which Illinois Law Applies to HOA Collections?

Before analyzing an Illinois HOA collection dispute, determine what type of community is involved.

Community Type	Primary Statutory Framework	Collection Analysis
Condominium	Illinois Condominium Property Act	Statutory assessment and lien provisions apply
Common interest community	Common Interest Community Association Act	Statute + declaration + bylaws + other governing documents
Small/exempt community	May qualify for statutory exemptions	Governing documents and applicable law become especially important
Planned community	Depends on legal structure and governing documents	Review declaration and applicable Illinois statutes

The Common Interest Community Association Act (CICAA) defines and regulates common interest community associations, but certain smaller associations and other communities can be exempt from portions of the Act under Section 1-75.

That is why a homeowner should not automatically apply condominium collection rules to a neighborhood HOA.

How Does an Illinois HOA Collect Unpaid Assessments?

A typical collection process may involve several stages.

1. The Assessment Becomes Due

The homeowner’s account becomes delinquent according to the assessment schedule, declaration, bylaws, or applicable collection policy.

2. The Account Is Marked Delinquent

The association or management company calculates the unpaid balance and any charges that are legally authorized.

3. The Homeowner Receives a Collection Notice

The association may send a statement, delinquency notice, demand letter, or other communication requesting payment.

4. The Account May Be Referred for Legal Collection

If the homeowner does not resolve the delinquency, the association may refer the account to an attorney or pursue another remedy authorized by the applicable law and governing documents.

5. A Lien or Lawsuit May Become Relevant

For condominium associations, Illinois law specifically provides a statutory lien for qualifying unpaid amounts. Other associations require a separate examination of their governing documents and applicable statutory authority.

The precise timeline is not necessarily identical for every Illinois HOA.

Can an Illinois HOA Charge Late Fees and Interest?

Potentially, yes, but the authority to impose a particular charge matter.

An HOA should be able to identify the legal or contractual basis for charges appearing on a homeowner’s account. That authority may come from the declaration, bylaws, rules, applicable statute, or another enforceable agreement.

Illinois’ new collection-policy legislation specifically requires covered common interest community associations to establish policies addressing late fees and interest that the association is entitled to impose on delinquent accounts. The new requirements take effect January 1, 2027.

Homeowners disputing an account should therefore ask for an itemized statement showing:

• Original assessment
• Date it became due
• Late fee
• Interest
• Fine
• Collection charge
• Attorney fee
• Payment credits
• Remaining balance

An unexplained lump-sum balance is much harder for a homeowner to evaluate than an itemized account history.

What has the Illinois HOA Collection Policy Requirement Starting in 2027?

A major Illinois development is Public Act 104-0734, which takes effect January 1, 2027.

For common interest community associations covered by the amendment, the board must adopt policies and procedures concerning the collection of unpaid assessments. The association generally cannot take legal action to collect common expenses unless it has adopted and follows a written collection policy.

The required policy must address several important issues.

The Collection Policy Must Address:

1. When assessments are due and when they become delinquent
2. Late fees and interest
3. Returned-check charges
4. Whether payment plans are available and their minimum terms
5. When a delinquent account can be referred to an attorney
6. How payments are applied to a delinquent account
7. Available legal remedies for collecting the debt

This is an important change because the collection process will need to be tied to a written policy rather than simply relying on an informal practice.

Can an Illinois HOA Put a Lien on Your Home?

The answer depends on the type of association.

Condominium Associations

For condominiums governed by the Illinois Condominium Property Act, 765 ILCS 605/9 provides a statutory lien for qualifying unpaid common expenses and certain other amounts owed by a unit owner.

The statute provides that unpaid common expenses or qualifying unpaid fines, together with certain authorized interest, late charges, reasonable attorney fees, and collection costs, can constitute a lien on the owner’s interest in the property.

The statute also establishes rules concerning the lien’s priority relative to certain other liens and encumbrances.

Common Interest Community Associations

Do not automatically assume that the condominium lien provision applies to a non-condominium HOA.

A planned community or other common interest community may have collection and lien rights based on its declaration, bylaws, and applicable law. The exact language of the recorded governing documents can therefore be critical.

Can an Illinois HOA Foreclose on a Home for Unpaid Assessments?

Potentially, but foreclosure is a serious legal remedy and the answer depends on the community’s legal structure, the existence and enforceability of a lien, the amount owed, the governing documents, and the applicable statutory requirements.

For condominium associations, Illinois law provides a statutory lien framework for qualifying unpaid assessments. Enforcement of that lien can involve judicial proceedings and specific statutory requirements.

A homeowner should never assume that receiving a collection letter means foreclosure is immediately possible. Likewise, homeowners should not ignore a lien or foreclosure-related notice because association collection actions can have significant consequences.

If an actual foreclosure complaint, lien notice, or court document has been served, obtaining advice from an Illinois attorney promptly is generally more appropriate than relying on a general online article.

Can an Illinois HOA Sue a Homeowner for Unpaid Assessments?

An association may have the ability to pursue a monetary claim for amounts properly owed, subject to the applicable law and governing documents.

For common interest communities, Illinois law gives associations authority to levy and collect assessments. The association’s specific enforcement options depend on the community’s legal structure and governing documents.

A lawsuit can potentially result in a judgment against the homeowner, which is different from simply sending a collection notice.

Homeowners who receive court papers should pay attention to deadlines. Ignoring a lawsuit can result in a judgment even when the homeowner believes the underlying amount is incorrect.

Can an Illinois HOA Charge Attorney Fees?

Attorney fees may be recoverable in certain HOA and condominium collection situations, but the association must have a legal basis for adding those fees to the homeowner’s account.

For condominium associations, 765 ILCS 605/9 specifically includes reasonable attorney fees incurred in enforcing condominium instruments, rules, or applicable statutes among certain amounts that can be secured by the statutory lien.

For common interest communities, the authority may depend on the governing documents and applicable law.

This is why homeowners should request an itemized accounting rather than assuming every collection expense automatically becomes part of the debt.

Can an Illinois HOA Charge Management Fees for Collection?

Illinois law places limitations on certain collection-related management fees for common interest community associations.

Under CICAA, fees relating to collection generally cannot simply be added to a member’s share of common expenses unless the statutory conditions are satisfied. The management fees must relate to collection costs, be established in the management contract, and have authority specifically stated in the declaration, bylaws, or operating agreement.

This distinction matters because a homeowner may see several separate charges on an account, but each charge does not necessarily have the same legal basis.

Does an Illinois Homeowner Have a Right to a Payment Plan?

A payment plan is not automatically guaranteed in every HOA collection situation.

However, Illinois’ new collection-policy requirements for covered common interest communities require the written collection policy to identify the circumstances, if any, under which a homeowner is entitled to enter a payment plan and the minimum terms of that plan. Those requirements take effect January 1, 2027.

Homeowners dealing with delinquent assessments should therefore ask the association for its written collection policy and determine whether a payment plan is available.

A payment arrangement should ideally be documented in writing, including the total amount owed, payment schedule, treatment of new assessments, and what happens if a payment is missed.

What Should a Homeowner Do If an Illinois HOA Says They Owe Money?

If you believe your HOA account is wrong, do not simply ignore the collection notice.

Use a structured approach.

Step 1: Request an Itemized Account

Ask the association or management company for a complete accounting showing every charge and payment.

Step 2: Review the Governing Documents

Check the declaration, bylaws, rules, assessment provisions, and collection provisions.

Step 3: Compare the Account with Your Records

Check:

• Bank statements
• Payment confirmations
• Cancelled checks
• Online payment records
• Previous account statements
• Assessment notices

Step 4: Request the Collection Policy

For covered common interest communities, the 2027 law makes the written collection policy particularly important.

Step 5: Dispute Incorrect Charges in Writing

Clearly identify the amount you dispute and explain why.

Step 6: Respond to Legal Notices

If you receive a lien notice, lawsuit, foreclosure document, or attorney communication, do not ignore it.

Step 7: Get Legal Advice When the Stakes Are High

Consider an Illinois real-estate or community-association attorney if the dispute involves a substantial amount, lien, foreclosure, lawsuit, or complicated ownership issue.

Homeowner vs. Association Responsibilities

Issue	Association Responsibility	Homeowner Responsibility
Regular assessments	Establish and collect according to governing documents and law	Pay valid assessments when due
Delinquency	Follow applicable collection procedures	Address delinquency promptly
Late fees	Charge only when authorized	Review disputed charges
Payment plan	Follow applicable policy	Follow agreed payment schedule
Collection costs	Follow statutory and governing-document requirements	Request itemized accounting
Lien	Use only legally available lien rights	Respond to lien notices
Legal action	Follow applicable procedures	Respond to court documents
Records	Maintain required records	Review available records where authorized
Collection policy	Adopt and follow required policy when applicable	Request and review policy

What Records Should an Illinois Homeowner Request?

Documentation can be extremely useful when an assessment balance is disputed.

Depending on the community and applicable law, a homeowner may want to obtain:

• Current account ledger
• Assessment history
• Payment history
• Declaration
• Bylaws
• Rules and regulations
• Collection policy
• Board-approved assessment information
• Notices of delinquency
• Copies of recorded liens
• Attorney correspondence
• Payment-plan documents
• Relevant board records

CICAA contains recordkeeping and disclosure requirements for covered common interest communities, while condominium associations are governed by their own statutory framework.

Can an HOA Discuss a Homeowner’s Unpaid Balance at a Board Meeting?

Illinois law recognizes that unpaid assessments can be a subject for closed discussion in certain common interest community board meetings.

Under CICAA, board meetings generally are open to unit owners, but the board may close portions of a meeting to discuss certain subjects, including a member’s or unit owner’s unpaid share of common expenses. Any vote on those matters must be taken at a meeting or portion of a meeting open to members.

This is an important distinction between discussing a delinquent account and taking formal board action.

What Happens When You Sell a Home with Unpaid HOA Assessments?

Unpaid association charges can complicate a property sale.

For common interest communities, Illinois law requires the board to make certain information available to prospective purchasers upon demand, including information concerning liens and the unit’s unpaid assessments and other charges.

For condominiums, resale disclosure requirements similarly require information concerning liens and unpaid assessments.

Because unpaid association obligations can affect closing and title issues, homeowners planning to sell should resolve outstanding balances early rather than waiting until the closing process.

Are Illinois HOA Collection Laws Changing in 2027?

Yes.

Public Act 104-0734 has an effective date of January 1, 2027. Among other changes, it adds written collection-policy requirements for covered common interest community associations and makes the collection policy relevant to certain resale disclosures.

The policy must establish key collection procedures, including delinquency timing, charges, payment plans, attorney referral, payment application, and available legal remedies.

2026 vs. 2027 Collection Policy

Issue	Current Framework	Beginning Jan. 1, 2027
Collection procedures	Governed by applicable law and documents	Written collection policy required for covered CIC associations
Delinquency definition	Governing documents/law	Policy must specify when account becomes delinquent
Late fees & interest	Must have applicable authority	Policy must identify authorized charges
Payment plans	Depends on documents/policy	Policy must state circumstances and minimum terms if available
Attorney referral	Existing authority and procedures	Policy must state amount/time before referral
Payment application	Existing governing rules	Policy must specify method
Legal remedies	Law + governing documents	Policy must identify available remedies

The effective date is important: the 2027 requirements should not be incorrectly presented as though every provision is already in force in September 2026.

Frequently Asked Questions About Illinois HOA Collection Laws