Sticker shock from monthly HOA dues is common in Streeterville. Between full-service staff, pools, and complex high-rise systems, assessments can look high at first glance. You are not alone if you are unsure what those fees cover or how they affect your mortgage and total monthly budget.
This guide breaks down regular assessments, reserves, and special assessments in plain English. You will learn exactly what to ask for in due diligence, how lenders view condo financials, and how to compare buildings so you get the lifestyle you want without surprises.
Let’s dive in.
What monthly assessments cover
In Streeterville’s amenity-rich towers, your regular monthly assessment funds the building’s operating budget. While every association is unique, dues typically support:
- Building staff such as doorman or concierge, on-site management, and janitorial teams.
- Elevator service and routine mechanical maintenance.
- Common-area utilities, cleaning, landscaping, and snow removal.
- The master insurance policy.
- Heat, water, trash, and recycling in many buildings.
- Upkeep for fitness centers, pools, and shared lounges.
- Property management fees and sometimes bulk cable or internet.
Every building bundles services differently. Always confirm what is included for your specific unit, and whether parking or storage is assessed separately.
Reserves 101 and why they matter
An association’s reserve fund is money set aside for predictable big-ticket items like elevator modernization, boiler replacement, façade repairs, or roof and window work. A professional reserve study estimates the remaining life of these components and recommends a funding plan.
- A current reserve study and consistent funding plan are best practices.
- Well-funded reserves reduce the likelihood and size of special assessments.
- Very low reserves relative to building age and upcoming projects can signal risk.
In high-rise buildings, capital items are large and cyclical. Strong reserves help keep costs smooth over time rather than spiking owners with sudden fees.
Special assessments explained
Special assessments are one-time charges when the operating budget and reserves cannot cover a major expense. Triggers can include urgent façade repairs, elevator replacement, or unexpected mechanical failures.
- Special assessments are usually levied based on each unit’s percentage interest as set in the condo documents.
- Frequency and size depend on reserve funding, building age, and deferred maintenance.
- A pattern of frequent special assessments may point to chronic underfunding.
Your goal is to understand whether a building’s capital plan is realistic and funded, so you can anticipate the likelihood of future one-time charges.
How lenders view condo financials
When you buy a Streeterville condo, lenders evaluate both your finances and the building’s. Here is what that means for you:
- Monthly HOA dues are added to your principal, interest, taxes, and insurance for debt-to-income (DTI) calculations.
- Many loan programs review condo projects for eligibility, considering items like reserve funding, ownership concentration, commercial exposure, and litigation.
- Lenders typically require disclosure of any pending special assessments. They may ask for proof you can pay the assessment, require the seller to cover it at closing, or hold funds in escrow.
- Underwriting often requests the association budget, reserve study, financial statements, meeting minutes, and delinquency data.
Because each loan program has different rules, tell your lender early that you are buying a condo and provide building documents promptly. Loan approval can hinge on the association’s financial health.
Streeterville due diligence checklist
Before you make an offer, or at least during attorney review, request and review the following with your agent and lender:
- Current-year operating budget and the prior fiscal year budget; year-to-date profit and loss.
- Reserve study and the most recent reserve balance.
- Association balance sheet and cash flow statements for the last 12 to 24 months.
- Minutes from board meetings for the past 12 to 24 months.
- Schedule of outstanding assessments and owner delinquencies.
- Master insurance certificate, including any fidelity bonding.
- Declaration, bylaws, rules, and amendments.
- Condo or project questionnaire often required by lenders.
- Any engineering reports, inspection summaries, or capital project bids.
- Litigation disclosures for any pending or recent lawsuits.
- Owner-occupancy and investor ratios.
- Parking and storage contracts and fees if applicable.
What to look for:
- Reserve adequacy. Compare balances and the funding plan against near-term capital items in the reserve study.
- Special assessment history. Repeated assessments can be a red flag.
- Delinquency rate. High delinquency strains cash flow and increases risk.
- Upcoming capital projects. Know the scope, cost, and funding plan.
- Litigation or insurance claims. These can affect eligibility and costs.
- Management quality. On-site, experienced management often improves outcomes in large buildings.
Illinois condominiums are governed by the Illinois Condominium Property Act (765 ILCS 605/), along with each association’s declaration, bylaws, and rules. These documents define the board’s authority to levy assessments and outline procedures and voting requirements.
Amenity costs: why dues vary
Streeterville buildings often offer 24/7 door staff, on-site engineering, fitness centers, pools, roof decks, and parking garages. These elevate quality of life but also increase operating and capital costs.
Common cost drivers include:
- Full-time door staff and concierge services.
- Indoor pools, hot tubs, and spa facilities.
- Fitness centers and equipment replacement.
- Multiple elevators and high-rise mechanical systems.
- Rooftop terraces, landscaped common areas, and garage operations.
- Bulk utilities or bundled cable/internet.
Two quick examples to compare dues by size:
- Example A: 800-square-foot condo with a $600 monthly HOA. That equals $0.75 per square foot per month.
- Example B: 1,800-square-foot condo with a $1,800 monthly HOA. That equals $1.00 per square foot per month.
Normalizing by dollars per square foot helps you compare buildings with different unit sizes and amenity sets. Then layer in what is included in dues and the building’s reserve health.
How assessments affect your budget
Lenders add monthly HOA dues to your housing payment for qualification. For example, if your principal, interest, taxes, and insurance total $3,200 and the HOA is $600, the qualifying housing expense is $3,800 before other debts.
A $400 difference in monthly dues equals $4,800 per year. That swing can change your DTI and your eligibility for certain loan programs. It also affects your ongoing cash flow, even if the purchase price is similar.
Special assessments can impact you differently. If one is pending or recently approved, lenders may require proof of funds to pay it, a seller credit, or escrow at closing. Clarify the amount, timing, and who will pay before you finalize your offer.
Compare buildings the smart way
Use a consistent framework to evaluate options:
- Normalize dues by dollars per square foot and list inclusions like heat, water, internet, or parking.
- Adjust for amenities you will actually use. Paying for a pool is worth it if you value it.
- Prioritize reserve strength and a clear capital plan. Higher dues with strong reserves can be safer than low dues with no plan for upcoming projects.
- Review board minutes for signals of near-term projects, vendor bids, or early talk of assessments.
- Examine commercial or retail exposure in mixed-use towers and any vacancy risks.
Negotiation and closing tips
You can protect your budget while strengthening your offer:
- Ask early. Request budgets, reserve study, and minutes as soon as possible.
- Use contingencies. Include financing and condo-document review contingencies so you can exit or renegotiate if issues arise.
- Negotiate concessions. Seek credits or a seller-paid share of any known assessment.
- Consider escrow holds. Parties sometimes escrow funds to cover near-term assessments.
- Coordinate with your lender. Provide association documents promptly so underwriting can clear project-level conditions early.
- Engage counsel if needed. An Illinois condo attorney can help interpret declarations, bylaws, and complex issues like litigation or large capital plans.
The Streeterville takeaway
In Streeterville, assessments reflect the services and complexity of high-rise living. Your goal is not to find the lowest dues, but the best value and the least risk. When you pair a realistic operating budget with a well-funded reserve plan, you lower the chance of surprise costs while enjoying the amenities you care about.
If you want a clear, numbers-first read on a specific building’s assessments and reserves, reach out. With hands-on deal execution and neighborhood insight, Jeffrey Jungbauer can help you compare buildings, align your financing, and negotiate terms that fit your budget.
FAQs
What do Streeterville condo assessments usually include?
- Most cover building staff, common utilities, cleaning, insurance, elevator service, routine maintenance, and upkeep for amenities. Some also include heat, water, and bulk internet or cable.
How do reserves reduce my risk as a buyer?
- A well-funded reserve account, informed by a current reserve study, pays for big projects like elevator or façade work and reduces the likelihood and size of special assessments.
What triggers a special assessment in a Chicago high-rise?
- When reserves and the operating budget cannot cover a large or urgent expense such as façade repairs, elevator modernization, or a major mechanical failure, the board may levy a one-time fee.
How do HOA dues affect my mortgage qualification?
- Lenders add monthly HOA dues to your principal, interest, taxes, and insurance for DTI. Higher dues can limit loan options or reduce your qualifying amount.
What condo documents should I review before buying?
- Ask for the budget, reserve study and balances, financial statements, board minutes, delinquency and assessment schedules, insurance certificate, declaration/bylaws, and any engineering reports or litigation disclosures.
Can I negotiate who pays a pending special assessment?
- Yes. You can request seller credits, ask the seller to pay the assessment at closing, or use an escrow hold. Terms depend on the negotiation and lender requirements.
