Assessment increases are never popular. But in most buildings they're unavoidable: insurance premiums rise, utility rates climb, vendors raise prices, and buildings age. Boards that avoid increases for years usually end up with underfunded reserves and a painful special assessment.
The difference between an increase owners accept and one that sparks a revolt usually isn't the number. It's how the board explains it. This guide covers the legal notice rules, a year-round communication plan, a sample cover letter, how to handle hard conversations, and what owners can do to understand an increase.
Why "never raise assessments" backfires
Some boards take pride in holding assessments flat for years. It feels like good stewardship, but costs keep rising regardless. The gap usually shows up in one of three ways:
Underfunded reserves, leaving the building unable to pay for roofs, masonry or mechanical systems when they fail.
Deferred maintenance, as repairs get postponed and small problems become large ones.
A large special assessment, landing all at once on whoever owns at the time.
Modest, predictable increases that keep pace with costs are almost always easier on owners than long freezes followed by a shock.
First, know the legal requirements
In Illinois, the Condominium Property Act sets the ground rules for any budget or assessment change:
Owners must receive the proposed budget at least 25 days before the board adopts it, showing which portions go to reserves, capital expenditures or repairs, and real estate taxes (Section 18(a)(6)).
The board meeting to adopt the budget or a special assessment requires membership-meeting notice — 10 to 30 days in advance (Section 18(a)(8)).
The budget must be adopted at an open board meeting.
If total assessments for the year would exceed 115% of the prior year's, owners with 20% of the votes can petition within 21 days for a meeting to reconsider. The increase stands unless a majority of the total votes reject it.
Meeting these requirements is the floor. Good communication goes further.
Common misconceptions to address
"The board is wasting money." Show where the money goes. Most budgets are dominated by a few lines — insurance, utilities, maintenance contracts, management and reserves. A simple chart makes that clear.
"We had a surplus last year, so why raise assessments?" Explain what happened to the surplus (Illinois gives boards specific options for it) and why one good year doesn't cover rising costs.
"Reserves are a slush fund." Explain that reserves are set aside for specific future replacements identified in a reserve study, and are required by law to be "reasonable."
"Other buildings pay less." Every building is different — age, amenities, staffing, what's included (heat, water, cable), and how well reserves are funded. A low assessment in an underfunded building isn't a bargain.
"The management company is getting rich." Show the management fee as a share of the budget. In most associations, it's a small portion of total spending.
"Just cut the amenities." Explain what the amenities actually cost to operate, and which costs — like insurance and utilities — wouldn't change if an amenity closed.
A communication plan that works
1. Start early
Don't let the proposed budget be the first time owners hear about an increase. Mention cost pressures in newsletters and meetings throughout the year — for example, when an insurance renewal comes in high.
2. Lead with the reasons
Open with why, not how much. "Our insurance premium rose 28% at renewal, and our reserve study shows we need to increase contributions to replace the roof in 2029" is more persuasive than a bare percentage.
3. Show the numbers simply
A one-page summary showing the biggest cost drivers and how much each changed.
A chart of where each assessment dollar goes.
A table showing the monthly change for typical unit sizes.
The reserve study's projected balances with and without the increase.
4. Show what the board did to control costs
Owners want to know the board didn't just pass costs along. Mention rebid contracts, energy savings, insurance shopping, or projects deferred where it was safe.
5. Explain the alternative
Often the alternative to a moderate increase now is a larger special assessment later. Show that comparison honestly.
6. Hold a Q&A before adoption
A town hall or informational session — in person or online — before the adoption meeting gives owners a chance to ask questions without the pressure of a vote. It also surfaces misunderstandings the board can correct.
7. Be available after
Some owners will need help. Explain payment options and point to resources, while being clear that the association can't forgive assessments.
A year-round communication timeline
For a calendar-year association, communication might look like this:
Spring: Share results of the prior year's annual accounting and any surplus decision. Note major cost trends.
Summer: Report on insurance renewal (if mid-year) and reserve study updates in the newsletter.
Early fall: Preview the budget: "We expect increases in insurance and utilities; here's what we're doing about it."
At least 25 days before adoption: Send the proposed budget, cover letter and meeting notice.
One to two weeks before adoption: Hold an informational Q&A session.
Adoption meeting: Walk through the budget, answer questions, vote in open session.
After adoption: Send each owner their new assessment amount, effective date and payment instructions, plus a short summary of any changes made at the meeting.
A sample cover letter
Dear Owners,
Enclosed is the proposed [year] budget, which the Board will consider for adoption at its meeting on [date, time and location]. Under the proposed budget, monthly assessments would increase by an average of [X]%, or about $[amount] per month for a typical [unit type].
Three items account for most of the increase:
— Insurance: our premium increased [X]% at renewal, reflecting market-wide increases in property insurance.
— Reserves: our [year] reserve study recommends increasing contributions to prepare for [project] in [year].
— Utilities: [gas/water/electric] rates are projected to rise [X]%.
To control costs, the Board [rebid the janitorial contract, saving $X; shopped the insurance with multiple carriers; installed LED lighting in common areas]. Without this increase, we expect the association would need a special assessment of approximately $[amount] per unit within [time frame].
We'll hold an informational session on [date] at [time] [in the community room / by video at link] to answer questions. You can also send questions to [manager contact] in advance.
Thank you for your continued support of our building.
The Board of Directors
The letter leads with the why, puts the number in everyday terms, shows cost control, explains the alternative, and invites questions.
Handling tough conversations
Some owners will be upset, and some will have real hardship. A few principles help:
Listen first. Let the owner finish. Many people mainly want to be heard.
Acknowledge the impact. "I understand this is a real increase for you" is honest and respectful.
Explain, don't argue. Point to the specific cost drivers and the documents behind them.
Offer the documents. Owners can request records under Section 19; offering them proactively builds trust.
Follow up. If you don't know an answer, say so and get back to them.
Keep it respectful. Board members are volunteers and neighbors. Both sides deserve courtesy.
Owners on fixed incomes
For owners on fixed incomes, even a modest increase can be hard. Boards can help by:
Giving as much advance notice as possible.
Explaining available payment options, such as automatic payments.
For special assessments, considering installment schedules where the project allows.
Pointing owners to outside resources, such as property tax relief programs or local assistance organizations.
Boards can't forgive or reduce assessments for individual owners — the Act says the association has no authority to forbear payment — but they can make the process easier to navigate.
Communicating special assessments
A special assessment needs even more explanation than a regular increase, because it's usually larger and less expected. In addition to the steps above:
Share the engineer's report, photos and bids that support the project.
Explain why reserves can't cover the full cost.
Be clear about whether the project is an emergency, legally required, a repair or an improvement — the classification affects owners' rights.
Offer a payment schedule where possible.
Report back on the project's progress and final cost.
(See Special Assessments in Illinois Condos for the legal rules.)
What to avoid
Surprises. A large increase with no warning feels like a betrayal, even when it's justified.
Jargon. "Deferred maintenance," "capital expenditures" and "funding ratio" need plain-English explanations.
Defensiveness. Owners have a right to question the budget. Treat questions as a chance to explain.
Skipping notice steps. A procedural mistake gives opponents an easy target.
Mixed messages. Board members should agree on the explanation before it goes out, even if they voted differently.
Over-promising. Don't promise there will be no increase next year unless you're certain.
For owners: how to understand an increase
Read the cover letter and budget comparison to see which lines changed most.
Look at the reserve contribution and ask how it compares to the reserve study.
Attend the Q&A session or send questions in advance.
Request documents like the insurance renewal or contracts if you want more detail.
Compare apples to apples. If you compare with another building, ask what's included in their assessment and how well their reserves are funded.
Plan ahead. Update your automatic payments and personal budget once the new amount is adopted.
Frequently asked questions
Do owners vote on assessment increases?
Not usually. The board adopts the budget, but owners with 20% of the votes can petition if total assessments exceed 115% of the prior year.
How much notice must owners get?
The proposed budget at least 25 days before adoption, and membership-meeting notice (10 to 30 days) of the adoption meeting.
Can the board lower my assessment if I can't afford it?
No. The Act says the association has no authority to forgive or forbear assessments. Ask about payment options instead.
Why did my assessment go up more than my neighbor's?
Assessments are generally allocated by each unit's percentage of ownership under the declaration, so larger units usually pay more. Some declarations allocate certain costs differently.
The bottom line
Assessment increases are part of responsible building management. Boards that communicate early and often, explain the reasons clearly, show their work, treat owners with respect and follow the Act's notice rules will find owners far more understanding than they expect.
Related reading:
Adopting Your Condo Budget in Illinois: A Step-by-Step Guide for Boards
How Much Should an Illinois Condo Association Keep in Reserves?
Special Assessments in Illinois Condos: What the Board Can Do on Its Own, and When Owners Get a Vote
Rising Condo Insurance Costs in Illinois: What the Law Requires and What Boards Can Control
Pimmit Run Management helps Illinois condo boards build clear budget presentations, owner-friendly summaries and compliant notices every budget season. Contact us to learn more.
This article is general information, not legal advice. Consult your association's attorney about your specific budget process.
This article is general information, not legal advice. Consult your association's attorney about your specific situation.