HOA Collections HOA Laws

What’s The New Illinois HOA Collection Policy Requirements For 2027?

The new Illinois collection policy establishes requirements for both homeowners associations and condominiums. It puts forth a prerequisite for pursuing legal action against delinquent owners. Failure to comply with this new law can render the association's collection efforts void and expose it to legal risks. What's the New Illinois Collection Policy? The Illinois Legislature recently passed a new law requiring HOAs and condominiums to establish a written collection policy before using legal means to collect delinquent dues. Senate Bill…

DeniseSeptember 7, 2026

HOA Accounting HOA Finance

HOA Invoice Fraud Is Real: Red Flags To Watch Out For

Very few board members can spot HOA invoice fraud before it's too late. By then, thousands of dollars may have already been stolen, and the board must deal with the aftermath. To strengthen the association's financial position and maintain owner trust, it is important to learn how to identify and prevent invoice fraud. What is HOA Invoice Fraud? Homeowners associations hire vendors to perform various work and services. They come in different forms, from landscapers and cleaning companies to…

DeniseAugust 4, 2026

HOA Collections HOA Deliquency HOA Finance HOA Vendors Uncategorized

Two Types Of HOA Debt: What Should The Board Do?

Navigating HOA debt can be tricky, especially for board members with little to no experience. Debt can take two forms, and it is imperative to understand how they affect the community and how to address them. While professional assistance is always preferable, boards must also get the basics right. What are the Two Types of HOA Debt? Homeowners associations work similarly to corporations. They earn revenue, pay vendors, and even rack up debt. But debt can mean two things…

DeniseJuly 8, 2026

HOA Deliquency HOA Fees and Assessments

Is Charging Interest On HOA Late Fees And Fines Legal?

Late fees on unpaid dues are par for the course, but can an association charge interest on late fees? Board members must understand their authority under state laws and the governing documents. Not everything is black and white, and even a single misstep can expose the association to liability. When it comes to interest, there's a lot to consider. Interest on Late Fees: Understanding Definitions Homeowners associations are no strangers to financial activities. In these communities, owners pay dues,…

DeniseJune 4, 2026

HOA Reserves

Can The HOA Borrow From Reserve Funds?

Is it legal for an HOA to borrow from reserve funds? This is a question many board members ask. The answer, while important, isn't as simple as a yes or no. There are several variables to consider, including the association's ability to repay the loan. Jeopardizing the reserves can have severe consequences, even putting board members at risk of liability. Can an HOA Borrow From the Reserve Fund? In an HOA or condo community, the reserve fund plays a…

DeniseMay 6, 2026

HOA Accounting

HOA Chart Of Accounts: A Checklist For Clear HOA Bookkeeping

An HOA chart of accounts is the foundation for all accounting transactions and books. It keeps an association's finances clear and organized, allowing the board to view its reports with accuracy and make informed decisions. Because of this, it is important to learn how to establish a solid chart of accounts. What is an HOA Chart of Accounts? A homeowners association chart of accounts is a structured list of financial categories used to record every transaction. It works as…

DeniseApril 7, 2026

HOA Budgeting

What Are HOA Budget Assumptions A Board Shouldn’t Forget?

The association board is responsible for preparing the HOA budget, but this task is more than just listing down expenses. Boards must rely on assumptions about future costs, income, and financial conditions. If these assumptions are unrealistic, the association may face funding gaps, forcing the board to either levy special assessments or significantly increase dues. What is the HOA Budget? Everything starts with the homeowners association budget. The budget is essentially a forecast of all expenses, with the board estimating…

DeniseMarch 18, 2026

HOA Finance

HOA Audit vs Review vs Compilation: What Do You Need?

The topic of HOA audit vs review vs compilation is often a source of confusion for board members. Each option serves a different purpose and offers a different level of financial assurance. Choosing the right one depends on the association's size, budget, and governing documents. HOA Audit vs Review vs Compilation: What's the Difference? Financial reports help boards understand the association's financial health. An audit, review, and compilation all serve this goal, but each does so at a different…

DeniseFebruary 25, 2026

HOA Taxes

Are HOAs Tax Exempt? Here’s How To Reduce HOA Tax Liability

Are HOA tax exempt? This is a common question for board members and community managers. Taxes are part of running any organization, including homeowner associations. Understanding the rules can help boards make informed financial decisions. Are HOA Tax Exempt? Many ask, "Are homeowner associations tax exempt?" The answer is usually no. Most HOAs must file tax returns with the IRS. Although they are not considered traditional businesses, they still generate taxable income. Income sources can include interest from reserve…

DeniseSeptember 23, 2025

HOA Taxes

Your Guide To HOA Tax Returns And Tax Filing In Illinois

An HOA tax return is something every association should understand, whether large or small. Filing correctly will help boards avoid penalties and maintain the association's good standing with the IRS and the state. Board members need to know what forms to use, when to file, and how rules fit into the process. What is an HOA Tax Return? An HOA tax return is a federal and state filing that reports an association’s taxable income to the appropriate tax authorities.…