Summary
The Declaration establishes the legal framework for HOA assessments. All assessments constitute a lien on each Lot and a personal obligation of the owner. Annual assessments are set by the Board; special assessments require a 2/3 vote of Voting Members. Delinquent assessments accrue 18% annual interest from the 30th day after delinquency. The Declaration grants the HOA authority to pursue legal remedies including liens and litigation, but litigation requires a 75% Voting Member vote (with exceptions).
Types of Assessments
| Type | Authority | Vote Required |
|---|---|---|
| Annual assessment | Board of Directors | Board vote only |
| Special assessment | Board + Voting Members | 2/3 of Voting Members |
| Legal action to collect | Board with membership vote | 75% of Voting Members (with exceptions) |
Key Provisions
| Rule | Source | Section |
|---|---|---|
| Assessments are a lien on each Lot | Declaration 2004 | 7.01 |
| Assessments are personal obligation of the owner at time of assessment | Declaration 2004 | 7.01 |
| Lien is subordinate to first mortgage | Declaration 2004 | 7.01 |
| Special assessments require 2/3 vote of Voting Members | Declaration 2004 | 7.02 |
| HOA may initiate legal proceedings to collect assessments | Declaration 2004 | 7.02 |
| Legal action requires 75% vote of Voting Members (with exceptions) | Declaration 2004 | 7.02 |
| 18% per annum interest on delinquent assessments from day 30 | Declaration 2004 | 7.03 |
| Interest calculated monthly on outstanding balance | Declaration 2004 | 7.03 |
Relationship to R&R Collection Policy
The Declaration’s Sections 7.01–7.03 provide the legal authority underlying the R&R Section 10 collection policy. The R&Rs add procedural steps (30-day notice, March 31 forgiveness window, $25 documentation fee, $1,000 demand letter threshold) that are layered on top of the Declaration’s baseline authority. See assessment-collection-policy for the full procedural timeline.
Initial Capital Contribution (at First Sale)
Special Amendment No. 1 (recorded May 19, 2004) corrected Section 6.07 and established the working capital and capital reserve seed funding:
| Item | Amount | Paid To | Trigger |
|---|---|---|---|
| Working Capital Deposit (total) | $45,000 | HOA | Deposited by Declarant before first closing |
| Working Capital reimbursement per Lot | $208 | Declarant | At first sale closing by each owner |
| Capital Reserve contribution per Lot | $100 | HOA | At first sale closing by each owner |
These amounts applied only to initial sales from Declarant/Designated Builder to first purchasers. They do not apply to subsequent resales.
Assessment History
| Year | Annual Assessment | Source |
|---|---|---|
| 2016 | ~$305.00 (estimated from financial statements) | board-packet-2018-07-17 |
| 2017 | ~$305.00 (estimated from financial statements) | board-packet-2018-07-17 |
| 2018 | $305.00 (confirmed) — 215 units × $305 = $65,575 YTD income | board-packet-2018-10-11 |
| 2019 | $312.00 (confirmed) — budget proposal October 2018; confirmed as current rate in 2020 budget worksheet | board-packet-2018-10-11, board-packet-2019-10-10 |
| 2020 | $320.02/unit (adopted; +2.57% over 2019) — Operating $288.74 + Reserve $31.28. October proposal was $312 flat; reserve raised from $5,000 → $6,725 at adoption, pulling the assessment up. | board-packet-2019-11-14 |
| 2021 | $320.02/unit (confirmed — flat from 2020) — AR aging entries confirm $320.02 per delinquent account; income statement budget = $68,804.09 ÷ 215 units = $320.02 | board-packet-2021-07-15 |
| 2022 | $333.00 (confirmed) — appears throughout June 2022 AR aging as current-year charge per delinquent account | minutes-2021-09-16, minutes-2021-11-11, board-packet-2022-07-21, board-packet-2024-04-11, board-packet-2024-07-11 |
| 2023 | $350.00 (formally adopted November 2022) | minutes-2022-07-21, minutes-2022-11-21 |
| 2024 | $350.00 (confirmed — flat from 2023) | board-packet-2024-04-11 (AR aging confirms $350 per-unit) |
| 2025 | $352.65/unit (confirmed) — stated explicitly in API homeowner cover letter dated September 24, 2024, mailed with the proposed 2025 budget. Budget total: $76,173 ($68,374 operating + $7,799 reserve). | board-packet-2024-10-24, year-end-report-2025 |
| 2026 | $352.65/unit (confirmed flat from 2025) — 2026 proposed budget holds total income at $76,173 (operating $68,374 + reserve $7,799), identical to 2025; confirms assessment unchanged | board-packet-2025-10-30 |
Note on unit count: The 2017 draft financial statements (Note 1) describe the association as having 215 units. Supplement No. 1 (R2006-249229) confirms this figure is correct: the First Amended and Restated Exhibit B lists lots 1-54, 57-71 (Unit 1), 72-150 (Unit 2), and 151-217 (Unit 3) — a total of 215 residential lots. Lots 55 and 56 were never created in the Unit 1 plat. The highest lot number (217) overstates the residential count by 2. The API management agreement’s figure of 216 remains unexplained and is likely a drafting error.
History
| Date | Event |
|---|---|
| 2021-09-16 | Board approved mailing draft 2022 budget; proposed annual assessment of $333.00. Source: minutes-2021-09-16 |
| 2021-11-11 | 2022 budget formally adopted; $333.00 annual assessment confirmed. Source: minutes-2021-11-11 |
| 2022-07-21 | Board approved mailing proposed 2023 budget to homeowners showing ~6% increase to $350.00. Source: minutes-2022-07-21 |
| 2022-11-21 | 2023 budget formally adopted. Motion carried. Source: minutes-2022-11-21 |
Reserve Study
The HOA is required to maintain a reserve fund. A reserve study estimates the cost and timing of future capital repairs and replacement of common elements.
| Year | Firm | Status |
|---|---|---|
| 2014 | Waldman Engineering Consultants | Completed — last known study |
| 2026 | Reserve Advisors ($2,200) | Completed February 17, 2026; scope questioned at May 2026 board meeting |
Source: minutes-2025-10-30, minutes-2026-01-14, minutes-2026-05-07, reserve-study-2026
May 2026 scope concern: Board questioned whether Reserve Advisors properly understood the boundary between HOA-owned and homeowner-owned property. Review of the study text suggests the classification appears correct — “Homes and Lots” are designated Owner Responsibility and only HOA-owned assets are included — but Board follow-up with Reserve Advisors to confirm is still pending. Source: minutes-2026-05-07, reserve-study-2026
Proposed Illinois legislation: A new law has been proposed that would require associations to contribute at least 15% of annual assessments toward the reserve fund for any association that has not completed a reserve study. Completion of the Reserve Advisors study may insulate the HOA from this requirement. Source: minutes-2026-05-07
For the full reserve study findings, see reserve-study-findings.
Reserve Contribution History
The annual reserve contribution has varied significantly, reflecting inconsistent reserve funding priorities over time:
| Year | Reserve Contribution | Source |
|---|---|---|
| 2011–2016 | ~$6,000–$6,500/year (replacement) + ~$500–$615 (OC) | board-packet-2019-10-10 (historical worksheet) |
| 2017 | $6,896 actual (replacement) + ~$500 (OC) ≈ $7,396 total | board-packet-2019-10-10 (historical worksheet) |
| 2018 | $7,103 (replacement) + $975 (OC) = $8,078 total | board-packet-2018-10-11, board-packet-2019-10-10 |
| 2019 | $4,417.27 (replacement) + $970 (OC) = $5,387.27 total (~33% drop from 2018) | board-packet-2018-10-11 |
| 2020 (proposed, October) | $5,000 (replacement) + $0 (OC) = $5,000 total — 34% below Waldman’s $7,535 recommendation | board-packet-2019-10-10 |
| 2020 (adopted, November) | $6,725 (replacement) + $0 (OC) = $6,725 total — 10.7% below Waldman’s $7,535 recommendation | board-packet-2019-11-14 |
| 2021 | $7,000 (budget = actual; confirmed in income statement) | board-packet-2021-07-15 |
| 2022 | $7,351 (annual budget confirmed in income statement) | board-packet-2022-04-14 |
| 2025 | $7,799/year (confirmed actual) | year-end-report-2025 |
The 2026 Reserve Advisors study projects a funding shortfall if contributions remain at $7,799/year and recommends phased increases to $24,300/year by 2031. See reserve-study-findings for full detail.
Reserve Fund Balance
The reserve fund receives a fixed annual contribution from operations ($7,799/year confirmed in 2025). Reserve funds are invested in CDs.
| Date | Balance | Source | Type |
|---|---|---|---|
| End of 2025 (estimated) | ~$185,000–$195,000 | year-end-report-2025 | Estimate from interest yield |
| March 31, 2026 (confirmed) | $270,599.93 (total reserves); $230,975.31 (replacement reserve equity) | financial-report-2026-03 | Balance sheet — confirmed |
The March 2026 balance sheet from the board packet is the first ingested document providing a confirmed reserve balance directly from the books. The 2025 interest-yield estimate was substantially below the confirmed figure.
Open Questions
- The exceptions to the 75% litigation vote requirement are not enumerated in the available Declaration text. Meeting minutes or Board counsel guidance may clarify which collection actions are excepted.
- 216 unit count in API management agreement: Supplement No. 1 confirms 215 is the correct residential lot count (Lots 55 and 56 were never platted; highest lot number 217 overstates by 2). The API management agreement’s figure of 216 units remains unexplained — likely a drafting error, but the specific basis is not documented.