Board Resource Center

Association Finance & Reserves

Build stronger budgets, reserve plans, collection procedures, and financial controls with guidance written for condominium, HOA, and townhome boards.

Published Guidance

Board guides in this topic

16 guides

Financial Management

September 12, 2026

How Board Members Should Read Association Financial Statements

You do not need an accounting background to read an association financial packet well. You need to know which four numbers matter and which questions to ask.

Insurance

September 9, 2026

Directors and Officers Insurance: Questions Every Volunteer Board Should Ask

Volunteer directors make consequential decisions. D and O coverage exists for the moment someone disagrees with one of them.

Financial Management

September 8, 2026

Association Liens and Delinquencies: What Boards Need Organized

Boards do not file liens. Counsel does. The board job is to keep records so clean that counsel can act quickly and the association position is provable.

Financial Management

September 4, 2026

Late Fees and Interest: Building a Defensible Association Policy

A late fee policy is only as strong as its authority and its consistency. Boards lose these disputes on process, not on the dollar amount.

Financial Management

August 31, 2026

Reasonable Reserves Under Illinois Condo Law

Illinois does not hand boards a reserve percentage. It expects a reasoned judgment. That means the documentation of your decision matters as much as the number.

Financial Management

August 29, 2026

Delinquency Escalation: A Consistent Process for Association Boards

The single biggest predictor of collection outcomes is not how aggressive a board is. It is whether the board treats every delinquent account the same way, on the same schedule, every time.

Board Operations

August 27, 2026

The Illinois 22.1 Disclosure Packet Checklist

The packet is where 22.1 compliance either works or breaks. This is the assembly and quality-control checklist boards can hand to whoever prepares it.

Insurance

August 24, 2026

Condo Master Policy vs. HO-6: What the Board Should Explain

Owners assume the master policy covers everything inside their unit. It usually does not. Here is how boards can explain the split without giving insurance advice.

Financial Management

August 23, 2026

How to Read a Condo Reserve Study Before the Next Budget

A reserve study is not a document you file. It is the input that should drive your reserve contribution line before the budget vote. Here is how to read one.

Financial Management

August 21, 2026

How Illinois Association Boards Should Adopt an Annual Budget

Budget season is where most association disputes are either prevented or created. Here is a repeatable process Illinois boards can use to build, notice, and adopt an annual budget without last-minute chaos.

Financial Management

August 20, 2026

Fannie Mae and Freddie Mac Condo Eligibility: A Board Readiness Guide

Lenders selling loans to Fannie Mae or Freddie Mac must confirm the whole project is eligible, not just the buyer. Here is what your board should have ready before the next questionnaire arrives.

Illinois Association Law

August 19, 2026

Illinois Section 22.1 Disclosures: A Board Guide

Section 22.1 of the Illinois Condominium Property Act governs the information a condominium association must provide when a unit is being resold. Here is how boards should organize for it.

Financial Planning

August 13, 2026

The 22.1 Disclosure and Beyond: A First-Time Chicago Condo Buyer’s Guide

You are not just buying a unit — you are buying into a business with a budget, a board, and a balance sheet. Here is how to read that business before you close.

Insurance

May 13, 2025

Why HOA and Condo Insurance Costs Are Skyrocketing in Illinois

Master-policy premiums and deductibles are climbing across Illinois. Here is what is behind the increases — and the practical steps boards can take to manage them.

Reserve Planning

January 28, 2025

Condo Reserve Funds Explained: Why So Many Associations Are Underfunded

Reserve funding has become one of the most important issues in community management. Here is what reserves are, why most associations fall short, and how to fix it.

Financial Planning

September 24, 2024

Special Assessments: Why Illinois Condo Owners Are Suddenly Paying Thousands

Special assessments are hitting Illinois condo owners harder than ever. Here is what they are, why they are rising, what the board can and cannot do — and how to prevent them.

Board Questions

What boards ask about association finance & reserves.

Clear scope, clear pricing, and a transition plan your board can evaluate before making a decision.

How much should our association keep in reserves?

Illinois requires condominium associations to fund reserves reasonable for the repair and replacement of common elements, judged against the age and condition of the building’s components, unless owners have voted to waive it. The statute sets no number, which is why a reserve study matters: it inventories components with remaining useful lives and replacement costs, then converts them into a funding plan a board can defend to owners.

What is the difference between a special assessment and a reserve?

A reserve is money collected steadily in advance for work everyone knows is coming. A special assessment is money collected suddenly for work that arrived before the reserve did. They fund the same repairs — the difference is whether owners had years to absorb the cost or weeks. Most special assessments are a reserve-funding decision made years earlier, catching up.

When should the board involve the attorney on collections?

Adopt a written collection policy in advance with defined trigger points, then follow it identically for every owner. Statements and late notices are administrative. Once the matter reaches a formal demand, a lien, or any action affecting possession, it carries statutory notice requirements and belongs with association counsel. What the board controls is the policy and the trigger; what counsel controls is the legal step.

Why does our insurance keep costing more?

Illinois associations have faced sustained premium increases driven by claims history, replacement-cost inflation on building materials, deductible structures, and reinsurance markets that price weather risk. Boards have less control over the market than over their own exposure: current appraisals, documented maintenance, resolved deferred repairs, and a clean claims record all affect what an underwriter offers at renewal.

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